Internet Marketing Case Study: Red Lobster

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Case Study: Red Lobster
1. Why do you think Red Lobster relies on so much on Internet surveys to track customer opinions, preferences, and criticism? What are the advantages of online questionnaires versus traditional surveys conducted over the phone or through the mail? ( Gideon Quarcoo) Red Lobster relies on internet survey for the following reasons: (source: Introduction to Marketing, by McDaniel, Lamb & Hair. Pg 284.) The internet is a phenomenon technological advancement that has happened to mankind and its benefits are enormous in every regard. This is not to say that the use of the internet is without flaws. However, its benefits far outweigh its flaws. Individuals, groups, institutions or business entities rely on the internet for information, advertisement, etc. with no exception to Red Lobster. One important reason for Red Lobster relying on internet survey instead of the traditional method is that, the number of respondents that can be reached is more that which the traditional method can cover. Eg, according to our textbook, half adult population in the US alone go online to shop, find information, e-mail or visit chart room. Because of the above information, it would be detrimental for Red Lobster to ignore the internet and conduct its survey using the phone or mail. Decision making can be better and faster using the internet since it provides unlimited access to information. Knowing this, Red Lobsters cannot do otherwise but to rely on the internet for data collection, analyzing, reporting and doing the necessary follow ups so as to address problems identified. The use of the internet also helps Red Lobster to improve the company’s ability to respond quickly customer needs as well as changes in the market place. This is very important for survival and growth of the company. Creating a long term relationship with customers can only happen if the needs of customers are identified and satisfied appropriately. Follow-up studies and tracking are made much easier and fruitful using the inteternet survey. Red Lobster would want to do a follow up on surveys conducted so as to correct errors made. Since the respondents are available via the internet, this can be done easily. Last but not the least, cost reduction is another reason for Red Lobster relying on the internet survey instead of the phone and mail. Every business entity has one of it objectives to be profitability. This can only be achieved if cost is minimized as possible. Red Lobster is no exception to this profitability issue and would therefore look for opportunities to cut cost and maximize profit.

The advantages of online questionnaires versus survey conducted over the phone or through the mail are as follow:

Conducting internet survey is quicker than the traditional survey by the use of phone or mail. This saves a lot of time and energy on the part of the researchers and the respondents. Cost involve is dramatically low as compared to phone or mail survey due to less time used. Questions and data are personalized to respondents as a result, the outcome of the survey address pertinent issues. Respondents are more willing participate is internet survey since the hassle and tussle of less time couple with the inconveniences of telephone calls or mail is avoided. There are some professions example accountants, lawyers, doctors engineers that are referred to as the hard-to-reach as a result of their busy schedules. This group of people can be reached easily by the use of the internet even if they are hard to reach using the traditional survey methods. Notwithstanding the advantages explained above, gestures, sounds, emotions, signs, reactions etc. which makes communication more meaningful is lost when using internet survey since there is no physical contact between the respondent and the researcher.

2. Go to www.redlobster.com and click around. How well do you think the site appeals to the educated, affluent, and...
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