Marketing report Virgin Galactic (PRICE)
2.Review Research questions John Doe 4
This report, composed on request of the management of Virgin Galactic, deals with the price aspects regarding space flights, particularly those offered by Virgin Galactic.
The main definition of the problem therefore is: “What factors affect the costumer’s willingness to pay?”
This report has been written for the management of Virgin Galactic and any and all individuals with the right to access this report. By reading this report, they can get an insight in which factor significantly influence a consumers willingness to pay and the manner in which the research has been conducted. These insights will incorporate aspects as the price people expect for a space trip, which people are willing to pay the target price and the influence of an unforeseen accident on price.
All of these items have been researched in order to allow Virgin Galactic to base future decisions and operations related to pricing aspects of space flight on thorough investigation rather than assumptions, in order to ensure success.
Firstly, as the research was initiated by John Doe, a revision has been made of the research questions to eliminate discrepancies between research question and questionnaire question. Secondly, the research will be described and findings will be discussed. Finally, conclusions will be drawn and recommendations will be given concerning the findings and the research.
Review Research questions John Doe
The research done by John Doe has been the starting point of our analysis. Several discrepancies between research questions and the questionnaire questions exist and several mistakes were present in the possible responses on the questionnaire questions. As a result of this a selection has been made based on validity and reliability of the data. Below an elaborate explanation of the reasons underlying the changes can be found.
The 1st research question made by John Doe is;
RQ1: Is the proportion of people that is willing to pay $200,000 equal to 5%? The number of 5 percent came from previous tests and should be viewed as the status quo. It is important to note that a discrepancy exists between the research question and the questionnaire question. In the questionnaire question the word ‘buy’ is used instead of ‘pay’. Despite the fact that this discrepancy exists it is believed that it will not influence the reliability of the collected data and therefore does not influence the validity of this research question. This would imply the following hypotheses and test:
H0: The proportion of people that is willing to pay $ 200.000 is equal to 5%. H1: The proportion of people that is willing to pay $ 200.000 is not equal to 5%.
Test: Chi square for Goodness of Fit
Relevant QQ: 1
The 2nd research question made by John Doe is;
RQ2: Does the prices set by our competitors influence the willingness to buy tickets for a space trip? Despite the fact that is a sensible research question on itself, the data available does not allow for a proper analysis. As such this research question will be changed to: RQ2: Does the fact that people compare prices of Virgin Galactic to competitors influence people’s willingness to pay?
This question is an improvement from then initial research question as it will give an insight whether people who compare prices are more, equally or less willing to pay. It should be noted that the initial classification done by John Doe would imply that the answers to the questionnaire question is based on a scale, whereas the measurement is nominal. Nevertheless, this does not influence the research. This would imply the following hypotheses and test:
Ho: There is no significant relation between comparing prices of Virgin Galactic with competitors and...