Group Assignment #5: Case 14.1: Hobbit

Marketing 381: Wendy Wilhelm

C Hayley Halstead

Delaney Knight

Mari Setijono

Shannon Walsh

Case 14.1: Hobbit

Bivariate Correlations (1 & 2)

  1. Perform the correct analysis and interpret your findings with regard to The Hobbit’s Choice Restaurant menu, décor, and atmosphere for those people who prefer to drive less than 30 minutes to get to the restaurant.

We utilized the Pearson Product Moment Correlation Coefficient to run a bivariate correlation tests in order to analyze the preferences for customers who prefer driving less than 30 minutes regarding the menu, décor and atmosphere.

Variables Correlated with Customers who Prefer Driving Less than 30 Minutes (Appendix A pages 1-5)

Variable / Correlation / Strength
Variables positively correlated with driving less than 30 minutes: *
Prefer elegant décor / 0.819** / Strong
Prefer large variety of
entrees / 0.806** / Strong
Prefer formal wait staff
wearing tuxedos / 0.799** / Moderate
Prefer string quartet / 0.788** / Moderate
Prefer unusual desserts / 0.768** / Moderate
Prefer unusual entrees / 0.765** / Moderate
Variables negatively correlated with driving less than 30 minutes: *
Prefer waterfront view / -0.805** / Strong
Prefer simple décor / -0.793** / Moderate
Prefer jazz combo / -0.532** / Weak

** Correlation is significant at the 0.01 level (2-tailed)

INTERPRETATION: People who prefer driving less than 30 minutes are more likely to prefer elegant décor and a large variety of entrees. They are moderately more likely to prefer formal wait staff wearing tuxedos, a string quartet, unusual desserts and unusual entrees. On the other hand, people who prefer driving less than 30 minutes are strongly unlikely to prefer a waterfront view, moderately unlikely to prefer simple décor and fairly unlikely to prefer a jazz combo.

  1. Do older or younger people want unusual desserts and/or unusual entrees?

Appendix A – page 6

Prefer Unusual Desserts / -.483**
Prefer Unusual Entrees / -.520**

** Correlation is significant at the 0.01 level (2-tailed)

We ran the Pearson Product Moment Correlation Coefficient to run a bivariate correlation tests in order to analyze the preferences for unusual desserts and entrees by age. As the year they were born increases (as they respondents get younger) there is a negative correlation to their preference for unusual desserts and entrees. However it is not significant because they are both less than 0.6. Therefore there is no significance between age and preference for unusual desserts or entrees.

Crosstabs and Chi-Square Analysis (3 & 4)

  1. Use the variable that distinguishes the “Probable patrons” (likely to patronize Hobbit’s Choice responses 1 or 2) for the “Not probable patrons” (likely to patronize Hobbit’s Choice responses 3, 4 or 5). If the probable patrons constitute The Hobbit’s Choice Restaurant target market, what is the demographic makeup of this target market? Use the demographics of household income, education level, gender, and zip code.

Most Probable Patron (Appendix B)

Demographic/Media Variable / Variable Category / Pearson Chi-Square (Significance) / Column Percentage
Income / $100,000 to $150,000+ / .000 < .05
Significant / 87.3%
Education / Bachelor’s Degree and Master’s Degree / .000 < .05
Significant / 90.9%
Gender / Male and Female / .516 > .05
Not Significant
Zipcode / B (3, 4, and 5) / .000 < .05
Significant / 82.7%
Radio Programming / Easy Listening & Talk/News / .000 < .05
Significant / 89.8%
Newscast / 6:00 pm News / .000 < .05
Significant / 76.4%
Local Newspaper / Business and Editorial / .000 < .05
Significant / 80.7%

We ran a crosstabs, column and row chi-square analysis. Hobbit’s probable patrons are more likely to make more than $100,000 (87.3%) than non-patrons (4.4%). Appendix B – Table 1 (chi-square = .000 < .05)

Hobbit’s probable patrons are more likely to have a Bachelor’s or Master’s Degree (87.3%) than non-patrons (77.2%). Appendix B – Table 2 (chi-square = .000 < .05)

Hobbit’s probable patrons are likely to be both male (53.6%) and female (46.4%). Appendix B – Table 3 (chi-square = .516 > .05 Not Significant)

Hobbit’s probable patrons are more likely to make live in zip codes 3, 4 and 5 (82.7%) than non-patrons (10%). Appendix B – Table 4 (chi-square = .000 < .05)

Hobbit’s probable patrons are more likely to listen to easy listening and talk/news radio programming (89.8%) than non-patrons (22.7%). Appendix B – Table 5 (chi-square = .000 < .05)

Hobbit’s probable patrons are likely to watch the 6:00 pm newscast (76.4%) than non-patrons (18.3)Appendix B – Table 6 (chi-square = .000 < .05)

Hobbit’s probable patrons are more likely to read the business and editorial sections of their local newspaper (80.7%) than non-patrons (12%). Appendix B – Table 7 (chi-square = .000 < .05)

  1. Is the City Magazine a viable advertising medium for Jeff Dean to use? Apart from this question, are there other viable promotion vehicles that Jeff should know about?

Appendix C

We ran a crosstabs, column and row chi-square analysis. City Magazine is a good advertising medium for Jeff Dean to use. Hobbit’s probably patrons are more likely to subscribe to City Magazine (88.2%) than non-probable patrons (29%). Appendix C – table 1. (Chi-square = .000 < .05)

Another viable promotion vehicle would be to advertise through Radio Programming (specifically easy listening and talk/news stations). Hobbit’s probable patrons are more likely to listen to easy listening and talk/news radio programming (89.8%) than non-patrons (22.7%). Appendix B – Table 5 (chi-square = .000 < .05)