Step Five
Created Focus Group Questions and Presentation
The Focus Group Questions were generally open-ended in nature to generate as much discussion and “new” or exploratory information as possible. The questions were formed in a funnel manner to go from general to more specific.
Step Six
Planned and Organized Focus Group
Participants were selected based on availability. All participants were regularly active, whether or not they attended a gym. Props were purchased such as markers, pens, and notepads. Also, refreshments were provided to all participants.
Step Seven
Conducted Focus Group
Focus groups tend to be made up from 8 to 10 participants who are encouraged to discuss and share opinions. The research will probe into specific areas that are of interest to the company commissioning the research for green gyms. Focus groups can prove invaluable to companies who aren’t sure which questions to ask in a questionnaire are new information should be generated that the researchers may not have previously considered.
Moderator asked open-ended questions and allowed the discussion to naturally move around the table in a snowballing fashion, but prompted where necessary. The presentation consisted of pictures which were meant to inspire the participants. The moderator made use of the white-board to write preferences and to gain agreement amongst participants.
The focus group was video recorded and transcribed by two individuals to ensure there was no discrepancy or bias between notes.
Step Eight
Compiled Information from Focus Group
Point form notes were made to summarize findings of focus group. (See Appendix.)
Focus Group Conclusions:
- Most of the people would prefer a gym that has a good reputation.
- Most people don’t really care if their friends have a membership in the same gym. Proximity and quality (value for money) are more important.
- Almost all focus group members preferred to pay monthly rather than every 3 months, 6 months or annually.
- Most people would prefer a gym that reimburses members their dues if they opt to quit or allows them to be transferred to another person.
- A provision to put memberships on hold during vacations is greatly appreciated.
- Willingness to pay is higher in women if the machines have TVs and iPods attached to them.
- To payback for the energy created in the gym, members would like to receive small promotions such as juice, power bars or smoothies. They would not be motivated by the idea of earning a t-shirt or some other “trophy” type token.
- Five out of 7 would sign up for a green gym even if it cost more than an average gym.
- Some thought the idea of “by invitation only” would be positive, while most group members didn’t like this idea.
- Members would be turned off of a gym that had lengthy wait times for machines.
Summary of Findings of Focus Group:
Most Important Factors in Selecting a Gym
- Proximity- More preferable if close to home or work place.
- Amenities – Sauna, Tennis court, Swimming pool
Women- place more emphasis to change rooms, showers, hair dryers, towels, other “comfort” amenities. They would pay extra for all these.
Men- change room. Majority of men wouldn’t pay extra
- Quality – Facility, machines, equipment
- Personal Trainer
- Extra things like- TV and iPods on the machines
Motivation for Attending a Gym:
- Health
- Improvement in appearance
- Social network
- Time for yourself/personal gratification
- Stress buster
Step Nine
Decided on Type of Survey
Due to convenience, time, low cost and a broader spectrum of respondents, the decision was made to send the survey via email. Also, due to the wide acceptability of internet today, we felt this was a wise decision.
Step Ten
Sampling Method
We used a Non-Probabilistic Sampling Method of Judgmental Sampling. We selected individuals we knew either first or second-hand. Each individual lived in Madrid. Each was either a current or a previous gym member and considered fitness to be an important part of healthy living. Finally, each respondent was either a white-collar worker or a Masters Student who planned to re-enter the white-collar business world in the next few months.
Step Eleven
Questionnaire Design
Questionnaires are a cheap and easy way to gather vast amounts of data from a potentially large number of respondents. It is important to remember that a questionnaire should be viewed as a ‘multi-stage’ process beginning with a definition of the aspects to be examined and ending with interpretation of the results.
The steps required to design and administer a questionnaire are as follows:
1. Defining the Objectives of the survey
2. Determining the ‘Sampling Group
3. Writing the Questionnaire
4. Administering the Questionnaire
5. Interpretation of the Results/Analysis
Our questionnaire was designed using a funnel approach and utilized: forced ranking, likert scale and equal width interval.
(See Appendix for full questionnaire.)
Step Twelve
Implementation of Survey
The survey was first translated into Spanish. It was then sent via email to our selected participants (in the appropriate language). We requested the survey kindly be returned to use by the end of the day.
Sample size:
The Sample Size for Consumers is 32
Step Thirteen
Data Collection
The data was edited, codified, cleaned and added to SPSS.
Step Fourteen
Analysis of Data
Descriptive data was undertaken to find the central measures and variance of each variable. We then studied the relationship between variables using ANOVA, regression, Chi-Squared, and mean plot.
Step Fifteen
Conclusion & Recommendations
Data was analyzed and conclusion and recommendations were made.
Statistical Analysis
Questionnaire Analysis & Findings
First look of data: Analysis of Individual Variables
ONEWAY ANOVA
Mean plots: Age vs. Monthly expense
Means Plots: Monthly Expense vs. Frequency of going to gym
Conclusion:
The research carried out was done in two phases, first exploratory than descriptive. We sought to identify the factors impacting an individual’s willingness to pay for a gym.
The market analysis performed brought interesting results which should prove invaluable to the green gym investor. Through the focus group and surveys (32 respondents) we discovered frequency of attending a gym, motivations for attending a gym and willingness to pay. We also discovered how interested people are in merging the ability to feel good about themselves in the gym (body and mind) with the ability to feel good about themselves in another way, that of being able to contribute to the environment and the community all while networking with like-minded individuals.
The major conclusions are as follows:
Not surprisingly gym members select their gym of choice based first on proximity and price of gym, followed closely by the quality or value for money. The equipment most utilized, which would be essential for the gym, is the treadmill. They were also interested in the ability to purchase their membership on a monthly basis. The second most frequently purchased membership was the annual one. It should be noted that the majority of the respondents were in the age group of 26-35 so this could have had an impact on their purchase decisions as people in this age group tend to be more transient and thus have less interest in long-term commitments. They are also less likely to have as much disposable income as their older counterparts so this could have impacted the responses.
Most respondents were willing to pay over 35 euro a month on a membership. Unfortunately the questionnaire did not provide an option above this amount to check the true willingness to pay. The respondents were most willing to pay extra for massage therapy or sessions with a personal trainer.
Those who did not attend a gym regularly reported that their reason for doing so was because of time constraints. It is recognized that responses might not be true representations of the reasons i.e. individuals don’t like to admit that they are lazy or have no interest in exercise. Another key reason that people chose not to attend was because of their interest in doing other types of physical activity such as sports.
With respect to the concept of the green gym, being socially responsible and fostering networking opportunities, we found that the vast majority of people weren’t interested in paying extra. (Although some indicated they would pay more for networking opportunities.) The data may have been swayed by the age cohort as well as the fact that many of the respondents are current students with less disposable income. Further, with a lack of information about the full gym strategy being presented it is unlikely that the added value will be understood immediately. Respondents felt very positively about a gym that would allow them to reduce their membership fees or to receive some sort of a reward based on an increase in gym attendance. Again, being motivated by monetary value may be due to our limited study group (young students).
In contrast to the willingness to pay, there was a strong positive response shown (likert scale) toward being a member of a gym that invests in environmental and social causes. Likewise, respondents were interested in being a part of a gym which provided networking opportunities.
With our small sample size we were unable to conclude any correlation between the variables (with the exception of people exercising and exercising at a gym). (Being tautological we haven’t learned anything new from this information.)
Overall, we can see that if the gym does not charge members extra it may be successful provided it has all of the amenities a regular gym has and provided it is in the right location. (The market size and competitors must be considered.)
Given that our sample for the survey was small (only 32 people) and comprised many students, we can say that our research is not conclusive as it isn’t a true representation of the market.
Recommendations:
- A new study which is more representative of the target market in terms of age, profession (the gym is targeting white-collar professionals), and location should be conducted.
- The new study should have a much larger sample size. Using only 32 respondents doesn’t provide a very clear representation of any population. It would make sense to run the survey several times to assess consistency (due to noise, distraction, individual providing the survey etc.)
- The survey should change the membership prices to be more reflective of willingness to pay. At present time the highest price was above 35 euro. This was most frequently checked, but it doesn’t give a clear idea of how much respondents are willing to pay.
- The full concept of the gym should be explained in some depth prior to conducting the survey. Although respondents were given a bit of information, this wasn’t enough for them to have a full sense of the strategy or to build excitement. It should also be understood with any new concept it takes time to build excitement. It would make sense for the company to establish some “buzz” for themselves then to run another survey once the population is more aware.
- If the investors plan to go ahead, they should be sure to try to remove as many barriers to attending as possible. While we’re aware that true responses might not have been given, most people claim that time constraints was the main reason for not attending. Accordingly, the gym should respond by setting up in a white-collar location to save travel time. It should also create classes that are short, but effective. These could be dedicated to busy workers who only have a short time to exercise.
Appendix
Focus Group
Focus Group Discussion Questions:
All questions were centered on what we ultimately wanted to get out of the focus group, namely factors that influence a person purchasing a gym membership and willingness to pay. Our questions and responses are as follows:
- Age, frequency of attending a gym, location of gym, general habits, membership price.
- Which factors lead you to choosing a gym that is right for you?
- What factors would you consider if you were going to switch gyms? What would ultimately convince you to switch? (if different from above)
-
Which gym features are essential for you?
- Finish this sentence. A gym is a place to: (other than exercise, workout etc.)
- How would you feel about the potential to network with other professionals at your gym?
- What “extra” perks would you pay more for in a gym?
- How would you feel about a gym that invested in social causes?
- How would you feel about a gym that invested in the environment?
- What are your thoughts on a gym that provided you with a unique experience in which you were part of a community that allowed you to join in more than exercise i.e. the opportunity to help others or the environment?
- What would encourage you to attend the gym more frequently?
- What are your thoughts on the concept of creating energy (electricity) rather than burning energy (calories)?
- Would you be motivated to attend a gym that passed membership savings onto you i.e. the more you attend the gym, the cheaper your monthly rate is?
- Would you be more motivated to push yourself harder in a workout if you were able to monitor the amount of energy you produced (resulting in the gym using less energy)?
- Would you be interested in paying extra for a gym membership in which you felt emotionally invested?
Individual
Person A (Male, 30) –Mostly gym for 6 months at a stretch, 3-4 Times a Week. Also prefers Cycling, Running
Person B (Female, 29) – More regular to gym in winter, 3-4 Times a Week, Prefers to go in groups since it’s a source of inspiration
Person C (Male, 33) – Prefers to go to gym alone, 3-4 times a week. Also prefers jogging, swimming and more sporty activities
Person D (Female, 25) – Not a regular to gym, 2-3 times a week. Prefers to go in groups since it’s a source of inspiration
Person E (Female, 28) – Prefers classes of yoga, aerobics, dance apart from the basic gym regime, 2-3 times a week.
Person F (Male, 24) – Prefers to go to gym alone, kick boxing, running, muay thai. Not interested in networking in the gym. Trains for 2 hours every day.
Person G (Male, 30) – Prefers tennis, football, martial arts. Gym – 2-3 times a week
Statistical Analysis
- Age range
Finding: Most of the respondents were in the age group of 26-35.
- Professional Background
Finding: Most of the respondents were technical/professionals and students
- What is the typical membership length you sign up for at a time?
Finding: Most of the people opt for monthly membership plan followed by annual. The least utilized membership was six months.
- How often you exercise
Frequency
Finding: Most of the respondent exercise 11-20 times per month and 5-10 times per month.
- How often do you attend a gym?
Frequency1
Finding: Most respondent do not attend gym. The one who attend the frequency was 1-4 and 11-20 per month.
- Monthly Expense
Finding: Most people spend more than 35 euro per month on gym. Nobody spend 1-10 euros on gym.
- For what activities would you pay extra?
Finding: People would be most willing to pay extra for massage therapy followed by personal trainer.
8. How much would you pay extra for a gym that invests in the environmental activities (per month?
Finding: Most of the respondents would not pay anything extra for a gym that invests in environmental activities. A small percentage of people might pay 1 to 6 euro extra per month.
9. How much would you pay extra for a gym that allows you to network with others (per month?)
Finding: Most of the respondents would not pay extra for a gym provides networking opportunities.
10. How much would you pay extra for a gym that invests in the community/social issue (per month?)
Finding: Most people would not pay extra for a gym that invests in community, although there are a good number of people who would pay 1 to 3 euro extra per month for such issues.
11. What piece of equipment do you use the most at a gym?
Finding: Most of the respondents were treadmill users
12. Reasons for not currently being a gym member (Options: not interested, price, too social, proximity, time, facilities and other)
Finding: The main reason for not being a gym member was due to time constraints. This was least affected by other factors such as interest, social reasons, and poor facilities. Factors such as price and proximity have minimal effect as well. Some people have other reasons for not joining a gym such as lack of motivation, treadmill at home, other sports and swimming
13. Rank the reasons in order of importance for a gym
Finding: Price and Proximity are considered most important for a gym followed by facilities.
14. Gender of respondent
Finding: 50% of the respondents were male and 50% were female
15. I would pay more for a gym that invests in community issues.
Where 1= strongly disagree, 2=disagree, 3=neutral, 4= agree, 5= strongly agree.
Finding: Most of the respondents were agree that they would pay more for a gym that invests in community issues.
16. I would pay more for a gym that invests in social issues.
Finding: Most of the respondents stated that they would pay more for a gym that invests in social issues.
17. I would pay more for a gym that invests in environmental issues.
Finding: Most of the respondents were agree that they would pay more for a gym that invests in environmental issues.
18. I would pay more for a gym that invests in Human right issues.
Finding: Most of the respondents were neutral about paying more for a gym that invests in human right issues.
19. I would pay more for a gym that invests in community/social/environmental/human right issues.
Finding: Most of the respondents were agree that they would pay more for a gym that invests in all four activities.
20. I would pay more for a gym that reduces your membership fees the more you exercise.
Finding: Most of the respondents were strongly agree that they would pay more for a gym that reduces their membership fees the more they exercise
21. I would pay more for a gym that invests in environmental and social causes and provides me with an opportunity to connect with like-minded individuals.
Finding: Most of the respondents were agree that they would pay more for a gym that invests in environmental and social causes and provides them with an opportunity to connect with like-minded individuals.
Descriptive Analysis of Variables
Descriptive Statistics of variables
There was a wide range of responses for importance of different classes for gym and monthly expenses for gym.
Correlations coefficients between different variables
* Correlation is significant at the 0.05 level (1-tailed).
** Correlation is significant at the 0.01 level (1-tailed).
Regression analysis between profession and environment
Model Summary
a Predictors: (Constant), profession
Correlations
References:
