Project Team Jeanette Daza Angelica Hernandez Liora Mahgerefteh Lior Moussaieff Math 110 Final Report – May 9, 2011 Survey and Analysis for Retail Shopping

2Topics  Identify a business or social issue to which surveying will get to the mind of the consumer  Addressable Minds… what is it, and how it works  Review the study process and the results and conclusions

3 Business & Sales Issues  Retail Shopping is necessity to some, and a nascence to others.. By doing a research study we sought out the different responses the public has on this issue.  Our study composed different issues concerning the conflicting amount of people that preferred in- store shopping to online shopping.  By having a range of prices throughout the store for our merchandise is a way to broaden the customer, spectrum, and spiking their personal interest.

 Addressable Minds is a scientific, actionable form of “predictive consumer intelligence” for business and social issues accurately defining consumer attitudes and preferences both stated and unstated.  It has been described by Malcolm Gladwell and others as discovering the “DNA of the Consumers Mind”.  This patented science created by Dr. Howard Moskowitz, author of “Selling Blue Elephants” (Wharton Press) and the Wharton Business School has achieved critical acclaim and financial success across: ◦ product design and development, ◦ consumer messaging, ◦ more effective consumer engagement physically and digitally. 4

Dr. Howard Moskowitz. Addressable Minds Inventor, honored by the scientific community,... Is the Chairman of iNovum, a graduate of Queens College and holds a Ph.D. in Experimental Psychology from Harvard University. Won two of the most prestigious awards in market research 2005 Charles Coolidge Parlin Marketing Research Award The “Nobel Prize” of Market Research, received only by the pioneers of market research. Recipients include Arthur Nielsen, George Gallup, Michael Porter, David Ogilvy and Philip Kotler Walston Chubb Award for Innovation across all sciences, Sigma Xi, The Scientific Research Society, international Awarded for Mind Genomics: The science underlying the technology used in this Math 110 course. 5

Addressable Minds Psychographic Segmentation - Social Class - Lifestyle Type - Personality Type Behavioral Segmentation - Product Usage - Brand Loyalty - Attitudinal Demographic Segmentation - Age - Gender - Income Addressable Minds Cuts across traditional segmentation & detects hidden preferences

Create Addressable Minds messaging for Retail Shopping 7 DEVELOP SURVEY QUESTIONS Potential Retail Shopping Sales ANALYZED SURVEY RESULTS → Addressable Minds INTERNET IdeaMap™ SUY SURVEY IDENTIFY TARGET MARKET MARKET SEGMENTATIONSEGMENTATION WIZARD MARKETING PHRASES 10 – 15 minutes

Addressable Minds’ underlying science uses standard Science and Mathematics 8 DEVELOP SURVEY QUESTIONS Retail Shopping Sales ANALYZED SURVEY RESULTS → Addressable Minds INTERNET IdeaMap™ SUY SURVEY IDENTIFY TARGET MARKET Conjoint analysis Ordinary Least Squares Regression Discriminant Function Analysis Experimental Design – Stimulus/Response

9 A Survey Was Performed by the Team in the area of Retail Shopping  To serve as a learning vehicle for the application Addressable Minds to a practical business or social issue  Sufficient to show the power of the method

10 SURVEY OVERVIEW (1 of 2)  An Addressable Minds Survey is a survey of key ideas for retail shoppers to prospects  Survey conducted on March 2011 : ◦ Population Ages 18 and over of Males/Females across the US  The team created key marketing and advertising messaging with the intent to entice the survey taker to shop at our retail store. 10

11 SURVEY OVERVIEW (2 of 2)  50 Individuals responded  Assess two major aspects of messages ◦ Does it convince a prospect to buy? ◦ How does it make the prospect feel?  Data reveals the mind-sets of respondents across the United States, as well as ‘what works, what doesn’t’ 11

12 The Survey begins with an orientation screen

13 Each respondent evaluates 48 unique combinations of elements First on overall interest

14 Then selects a single emotion PUT YOUR SAMPLE SCREEN HERE

15 What convinces? What drives feelings?

16 Total Panel – Interested in convenient shopping and bargain shopping. 1) How likely are you to purchase from this store? Sorted by Total Sample : Highlighted >+9 winners & <-9 losers Total Sample "The Convenience Shoppers" "The Bargain Hunters" Base Size Constant Save up to 40% on a fabulous selection for the whole family NO waiting, NO hassle, products delivered right to your front door step! Our products can be now conviently purchased online at our website, straight from home ! You can now pay your bill ONLINE! Gentleman ! : Polish up your look by adding sharp-looking dress shirts and ties!

There are two unique segments Different Shoppers – Different approaches 17 Convenient Shoppers 42% Bargain Hunters 62%

18 Knowledge (Seg2) – Includes rewards shoppers are interested in. 1) How likely are you to purchase from this store? Sorted by Total Sample : Highlighted >+9 winners & <-9 losers Total Sample "The Convenience Shoppers" "The Bargain Hunters" Base Size Constant Enter our beauty SWEEPSTAKES, for a chance to win a $500 SHOPPING SPREE! Easy Return & Exchange policies! Our products can be now conviently purchased online at our website, straight from home ! There are few better ways to give yourself some extra TLC, endulge in our wide selection of HOME products! Gentleman ! : Polish up your look by adding sharp-looking dress shirts and ties!

19 1) How likely are you to purchase from this store? Sorted by Total Sample : Highlighted >+9 winners & <-9 losers Total Sample “The Convenience Shoppers” “The Bargain Hunters” Base Size Constant Easy Return & Exchange policies! Check out our new Spring Collection, available online ! 9414 Enter our beauty SWEEPSTAKES, for a chance to win a $500 SHOPPING SPREE! Gentleman ! : Polish up your look by adding sharp-looking dress shirts and ties! Shop online, pay online - two peas in a pod! 7-8 Knowledge (Seg3) – Includes online services shoppers are interested in.

The “Segmentation Wizard” is a 30 second shortcut survey that is extracted from the 15 minute survey and identifies the segment membership of that individual 20 DEVELOP SURVEY QUESTIONS Potential Retail Shopping ANALYZED SURVEY RESULTS → Addressable Minds INTERNET IdeaMap™ SUY SURVEY IDENTIFY TARGET MARKET SEGMENTATION WIZARD 10 – 15 minutes Segmentation Wizard consists of 3 or 4 elements identified in the in-depth 10 – 15 minute survey

21 The Retail Shopping Segmentation Wizard– Online example The Segmentation Wizard is a short survey with the questions derived from the full survey to identify segment membership

22 The Retail Shopping Segmentation Wizard– Online example

23

24

25

26 Conclusions  Two Segments discovered by Addressable Minds point to the need for 2 individual messaging groups  Positive Emotions can be uncovered and subsequently reinforced in the marketing elements  Through this study, we have seen that both convenient shoppers and bargain hunters are hard to please, so a store that can serve both groups needs to be varied in merchandise, incentives from shopping, and prices of the merchandise provided.