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Real-Life Research
13.1 Analyzing William D. Scott (WDS) Segmentation Results
Janie Raynor is an advertising executive with Stewart Bacon Advertising. She is responsible for the WDS account and has just finished reviewing the results of a recent online customer study. WDS buyers were asked to complete a survey after making an online purchase. The study was conducted in the fourth quarter of 2019. The accompanying table shows selected survey results broken down by market segments (columns) identified in research and analysis previously conducted by WDS. The first two rows are based on actual sales data; the rest of the table shows results from the most recent survey with statistical testing of differences. The first six rows show key metrics used by WDS to guide its marketing strategy. Some of the key metrics come from actual sales data, whereas others come from the recent survey. All results, except those for the first two rows, are for the segments or based on segment column totals. Market Segment Single Single Married Married Married Variable 18-25 26-40 18-25 26-40 over 40 Percent of current customer base 15% 20% 27% 29% 9% (a) Percent of sales (a) 10% 13% 29% 34% 14% Top of mind awareness of WDS (a) 34%* 2 9%* 45% 51%** 53%** Image index (100-point scale) (b) 69%* 70%* 85% 92%** 93%** Likely to shop at WDS in next 30 days 21%* 19%* 33%* 39%** 42 %** Likely to shop at a competitive store in next 30 days 38%** 40%** 28%** 23%** 25%** Number of children under 23 years Average number 2.38 2. 10 0 0 0.29 Income Median income $28,ooo* $39,50 %44,430 $56.58o** $69,170** 0 % HH income over $75,000 29% 28% 15.3^ 28% 36% Education % College degree or more 9* 29** 26** 21 21 Ethnic makeup % White 94% 92% 91% 95% 95% % Black 3% 4% 6% 2% 4% % Hispanic 2% 2% 2% 2% 1% % Others 4% 4% 3% 4% 2%
(a): Based on actual customer data. Significance testing not appropriate.
(b): Index developed by Global Bazaar based on multiple measures from survey—higher is better. *: Significantly lower than average for all customers surveyed. **: Significantly higher than average for all customers surveyed.