Business_Research_Methods_Part_Ii

Business Research Methods – Part III In conjunction with our analysis of the management question, we conducted further analysis of Blockbuster’s desire to regain market share, return to market dominance, and resume its industry leadership. We address in this paper the potential challenges to the validity and reliability of the research questions, data, and analysis. The survey results consisted of investigative questioning that included the following: Should Blockbuster close its brick and mortar stores and focus on alternative movie delivery options' Should Blockbuster focus on online, on-demand movie rentals only' Should Blockbuster increase the number of blue boxes available in markets' With limited funds, can Blockbuster survive long enough to achieve their ultimate goal of becoming a one-stop, complete video rental service for consumers' The sample population included previous Blockbuster customers who have not patronized a Blockbuster store within the last three to six months. This survey provided results for our statistical analysis. All of these discoveries will be classified in order of power. Statistical Analysis The team used a combination of methods to perform the Blockbuster customer perception survey. About 60% of the participants completed the survey in person by means of intercept interviews at the workplace. The remaining 40% of the surveys were completed via e-mail. Out of a total of 16 e-mail invitations, only 11 participants responded to the survey. Our sample resulted in a total of 23 participants. The survey instructed the participants to respond as accurately and as honestly as possible. Appendix A graphically displays the results of the 23 completed surveys. Data from the interview results, pertaining to the movie rental experience, is on the nominal scale. This allowed the team to determine the mode and compare between its exclusive outcomes. For example, 87% of the respondents are former Blockbuster customers, although 91% of the respondents do not rent movies. Using the multiplication rule, the probability of finding a blockbuster customer among the respondents who rent movies is approximately 11.8%. Another interesting finding is that even though 13% of respondents are nominal Blockbuster customers, only 9% of the participants rent movies from Blockbuster. This data suggests customers with a Blockbuster membership may prefer to rent movies from the competitors. Continuing our analysis of the data, we find only 17% of respondents prefer to rent movies in-store. Of particular concern to Blockbuster, only 1% of respondents rents from Blockbuster kiosks. This low ratio of Blockbuster kiosk users may be related to the limited availability of kiosks, as compared to the more numerous kiosks of Blockbuster competitor, Redbox®. Survey sections using the Likert scale may employ item analysis to assess responses based on how well the survey discriminates between respondents whose total score is high and those whose total score is low. The Likert Scale, with a ranking scale that uses concepts rather than points on a scale, allowed consumers to express themselves differently. This analysis provides for a t value that helps determine how good the survey statements represent a measured attitude. If the analysis provides a favorable t-value (typically over 1.75), we can consider the statement in our measurement process. All nominal and ordinal scale data can be analyzed using the chi-square distribution. We can use the goodness of fit test to evaluate our results with the expectations. This test will help us evaluate the participant’s opinions and determine how likely participants are, for example, to agree or to disagree with a survey statement. The demographic section of the survey could be used to compare relationships between gender, household size, income and age. This allows for identification of certain preferences and attitudes toward Blockbuster or other, general movie rental options. To further analyze these relationships, a scatter plot is helpful. Regression and correlation analysis provide for accurate estimations of variable correlation and linear association. Shortcomings in the Data The reliability, consistency, and validity of this initial research are critical to Blockbuster's survival in an evolving market. After reviewing the data, there are several shortcomings with the research we wish to address. One question we have identified is in determining if the data addresses all the appropriate variables associated with the consumers’ decision-making process. We discuss the general video rental experience, product availability, and the products and services of Blockbuster and its competitors. Although the survey allows the participant to comment about additional variables at the end of the questionnaire, most of the questions are very specific regarding the respective variable being measured, and, therefore, discouraging additional discussion. To address this, we will provide more commentary opportunities for respondents to express their concerns regarding Blockbuster. In addition to the content, there are potential shortcomings in the sample group surveyed. Blockbuster must determine whether the sample group is an accurate representation of the general population. This initial research includes only former Blockbuster customers. To obtain an accurate viewpoint of the market population, additional research is necessary. That additional research includes random samples of current customers. It further includes consumers who have never been Blockbuster customers. There may also be value in identifying and asking further research questions of consumers who do not rent videos. From a quantitative perspective, we must evaluate the mean, deviation, variance and sampling error to determine data validity and reliability. The stability must be measured against future and past research to determine if our results are consistent. The feedback from our initial survey adequately answered our investigative questions, but we must conduct further research and analysis to fully understand the market. To compensate for these potential shortcomings, Blockbuster will plan an in-depth phone interview with a random sample of existing and former Blockbuster customers. That sample will also include consumers who have never rented from Blockbuster. Once the initial data is thoroughly reviewed, and we identify trends from the initial study, we will implement this subsequent research. Conclusions The team’s collaborative methods in executing the Blockbuster customer perception survey, concluding with data measured on a nominal scale, allowed the team to determine the mode and compare between its select outcomes. The potential challenges to the validity and reliability of the data are of concern. We will address those issues. One of those issues is regarding the possibility the aggregated data gathered from the surveyed sample group may not be a fair representation of the general population. Although there was substantive feedback from the initial survey addressing the investigative questions, we will conduct further research to drill-down into the market so we can better identify where Blockbuster fits into the current market. According to the results of the study, price appears to be the main deterrent to consumers shopping at Blockbuster. After completion of the additional research and analysis, it might be worth considering closing the retail stores and focusing on delivery methods with considerably lower overhead. This would allow Blockbuster to regain market share while maintaining the profit margins by drastically reducing operating costs. References Cooper, D., Schindler, P. (2006). Business Research Methods (9th ed.). : McGraw-Hill Irwin Carr, A. (2010). Blockbusted: A Netflix Knock-Out, Bad Metaphors on the Path to the Movie Monster's Bankruptcy. Fast Company. Retrieved from http://www.fastcompany.com/1685375/blockbuster-plans-for-bankruptcy-a-look-at-ceo-jim-keyes-best-denials'nav=inform-rl SurveyMonkey.com. Tip! Creating an Effective Survey Introduction. Retrieved from: http://help.surveymonkey.com/app/answers/detail/a_id/136/~/tips-for-creating-an-effective-survey-introduction.