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A Marketing Research Report - DVDs.com

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A Marketing Research Report Conducted by Bikun Zheng, Hui Zhang, Prachayanee Kulrapurk, Sucharee Leesamphandh and Xiaoying Sun, For DVDS.COM Dec 5^th, 2002 Table of Contents I Executive Summary II Introduction l Background l Objectives III Methodology IV Findings l Comments on Research Design l Assessment of differences l Managerial perspective V Conclusions and recommendations VI Appendices I Executive Summary DVDS.COM is now considering whether the firm should push a new graphic design to replace the current one . A experimental approach(, specifically, After-Only with Control Group Design )is carried out to testing and measuring the different outcomes exposed to the two graphic designs. In the report, it is found that the research design offers many advantages such as high degree of validity and causality, meanwhile bearing disadvantages such as measurement error and limited period. Moreover, by analysing the results of the test, manager should pay attention to the decreased re-purchase level as well as the increased column of product purchase. Consequently, we recommend that DVD.com should extend the test period to get more observation before replace the current graphic. And another survey methods should be employed to help to assess the effectiveness of the new graphic. ...read more.


- In terms of the amount of the visitors exposed to each graphic, the percentage of made a purchase in the current one is around 33.40% which is 1.1% less than 34.5% of it in the new one. - The purchase differences of two graphic design is shown as followed: [image002.gif] - The percentage of repeat purchasers, last 30 days, emerged that 22.40% was the purchasers who entered to the current graphic, which was higher rate than 18.50 per cent of those who signed in the new graphic. Conclusion - No apparent influences on the use of designs because of a little nuance in quantity of the visitors who visited the two graphic designs respectively. - The percentage of who made a purchase and the average total purchase of visitors in new graphic groups is higher than that in old look. - Average music and video purchase both increase by 9.8% and 10.6% respectively. It implies, at lease in the short term, choosing the new graphic is preferable. - Overall purchase data represent the causation between the new graphic design and the merit on sales. managerial perspective From the above data analysis, it is obvious that the new graphic design is better than the current graphic design in attracting customers to make a purchase. ...read more.


- Error occurred in the randomization measurement. Either the current or new graphic randomly appears to the visitors, this means the customers might have possibly seen both of the two graphic designs before he made a purchase, therefore it is hard to tell which graphic lead to his purchase. Hence, any recorded data can not be accurate and valid. In conclusion, the employed test can not fully indicate the effect of the experience treatment so that it is unlikely to be used for final decision. Thus, DVDs.com is suggested to adopt the following recommendations: - Retaining the current graphic design and review the problems mentioned above. - Carry out a mini on-line survey , which include no more than three questions in collecting information of customers' attitudes, to assist the outcomes of the test . - Defering the test period to 60 days to meet a full cycle of purchase as well. VI Appendices a) The results of the test employed by the DVDs.com see page 280 of textbooks. b) The approach for testing After-Only with Control Group Design Basic Design: Experimental Group: (R) X O[1] Control Group: (R) O[2] Sample: Random sample of visitors that visit the DVDs.com, are randomly assigned to the test and control group. Treatment: (X) Placing the new graphic on website in the experimental group for a month. Measurement (O[1], O[2]): actual purchase data. ...read more.

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