ONTELA PICDECK – Understanding the market place – Assignment 1
1. Based only on the cluster analysis data, which preference related variables are most useful for segment identification and evaluation? Which variables are least useful? This qualitative research aims in identifying and evaluating the potential customers of PicDeck and determinate a precise target. The interviewees have been asked to answer questions based on a ranking system from 1 (strongly disagree) to 5 (strongly agree). The questions investigate the needs: Q 1, 6 – 9, and interest in this new technology service: Q 2 - 5, as well as the willingness of the interviewees to pay for this service: Q 11 – 13. The cluster method divides the interviewees between homogeneous segments, which have to be as different as possible between each others. Q 1, 2, 6 & 10 are extremely interesting because these answers give us insights about the customers’ needs for the PicDeck service. Indeed, we assume that the people saying they don’t find the current uploading method easy but who, in the same time, would like to take more phone pictures if the uploading method was easier, would be interested in the Ontela service.
In addition, we recognize in the people looking to save their pictures, a latent need of uploading the pictures in a safety place such as a computer or a mail box. This corresponds to the PicDeck service. Q 11 & 13 are really important too, to study the willingness of the potential customers to actually buy the PicDeck service. Thanks to these answers, we get to know the real purchasing intentions of the people. The pricing gives an idea of the perceived value of the service per the customer. We learn about their attitudes regarding the innovations: if they will rush to get the new gadget/tech service, or if they will buy it only if it is cheap.
Q 3,4 & 5 and 7, 8 & 9 are not the core questions.
Q3, 4 & 5 seem to give more insights about the customers’ relation to technology than to their need of the Ontela service. Analysing the results, we noticed the rates of Q7, 8 & 9 are quite the same whatever the cluster is. Therefore, these 3 variables (sending photos by email & putting them on the desktop or on facebook) are not useful in differentiating clusters. Therefore, these 3 questions do not appear to be efficient in identifying segments.
Q 12 appears to be in the middle. It does not appear like an appropriate variable because all the customers tend to look for the best price while purchasing new technologies. However, it is still a useful answer to study the willingness to buy of the customers.
2. Keeping in mind what you know about each cluster before you look at Exhibit 3 and Exhibit 4, create descriptive profiles for the customer segment represented by each cluster. Label each segment with a title that best describes that cluster. To what extent does this new information reinforce or challenge your previous assumptions about the segments in this market? Cluster 1: Technology seekers looking for convenience, 24%
Young professionals: They are interested in an efficient, easy & safe way of transferring photos as well as better quality phone cameras. They would be eager to use only one digital device in the future: camera on phone. They are looking at the new technologies as a way to improve their life: saving pictures on the computer, sending the pictures to their friends, and quick sharing of photos through the social networks. They are price conscious therefore they would agree to pay 5.75$ for the Ontela service.
Cluster 2: Photo passionate, 12%
Young to Middle-age professionals: They are interested in better quality phone cameras, aiming in taking more pictures. However, traditional photographers, they would like to keep their digital camera and maybe use their phone as a backup solution. They see Ontela service as a way to save their dear photos on the computer and sharing them on social networks. They are not early...
Please join StudyMode to read the full document