David Ortega is the lead researcher for an upscale restaurant group hoping to add another chain that
Question:
David Ortega is the lead researcher for an upscale restaurant group hoping to add another chain that would compete directly with the upscale Smith and Wollensky restaurants (http://www.smith-andwollensky.com). The Smith and Wollensky Restaurant Group operates a handful of iconic restaurants around the country. The average check for a customer at Smith and Wollensky is approximately $80 to $90.’ Whenever a new venture of this type is planned, one has to wonder whether there are enough customers willing to pay premium prices given the large number of lesser priced alternatives. In fact, David learns that Smith and Wollensky’ is giving some thought to opening a lesser priced “Grill” that would be positioned so that the average customer check would be about half that of the original. Maybe the best way to position the new restaurant group would be as a premium value offering high quality steaks and service but at a more modest price. What is it that people are willing to pay for and what sacrifices can be made to deliver a high value experience if not a luxurious experience? How can he create a unique experience at a lower price without falling into a mere dinner house category? These are the questions facing David Ortega.
RESEARCH APPROACH
After considering how to study the issue, David decides a qualitative research approach will be useful. He hopes to develop a deep understanding of how the fine dining experience offers value—and perhaps some insights into what intangibles create value for consumers in general. After considering the different options, he decides on a phenomenological approach. The primary tool of investigation is conversational interviewing. David plans to enter into casual conversations with businesspeople in the lounge of the downtown Ritz Carlton. He begins the conversation by commenting on the wine he is sipping—something like, “It isn’t bad, but it’s hard to believe they get $15 for just one glass of this stuff.”
RESULTS
Two weeks later, David has completed “conversations” with five consumers. He found them very willing and free to talk about the things they indulge in. He develops a field log of notes from the consumers’ comments. The notes are recorded verbatim.2 The following field notes are highlighted:
RESULTS
David decides to use a word count to try to identify the main themes. Hopefully, these themes can help clarify the business problem. Perhaps if the information can’t answer the questions above, it will point him in the right direction. Whatever the case, David feels the project has helped him better understand the total value proposition offered by restaurants, wines, hotels, and other products.
1. Comment on the research approach. Do you feel it was an appropriate choice?
2. ETHICS David did not inform these respondents that he was doing marketing research during these conversations. Why do you think he withheld this information and was it appropriate to do so?
3. ′NET Using the Internet, try to identify at least three restaurants that Smith and Wollensky competes with and three with whom the new S&W Grill may compete.
4. Try to interpret the discussions above. You may use one of the approaches discussed in the text. What themes should be coded? What themes occur most frequently? Can the different themes be linked together to form a unit of meaning?
5. What is the result of this research? What should David report back to the restaurant group?
Marketing Research Essentials
ISBN: 978-1118249321
8th edition
Authors: Carl McDaniel Jr., Roger Gates