MKTG 2010

Marketing Research

Major Project

Cathay Cinema

Evelyn

Stella

Rena

Emy

Lecturer: William Lee

Course Coordinator: Alison Dean

Table of Contents

Pages

.0 Introduction

5

.1 Case Background

5

.2 Competitor Analysis

5

2.0 Stage 1: Management Decision Problem Definition

6

2.1 Stage 2: Marketing Research Problem Definition

7

2.2 Stage 3: Marketing Research Objectives

7

2.3 Hypothesis

7

2.3.1 Research Model

7

3.0 Description of sampling technique used

8

3.1 Secondary Data

9

3.1.1 Australia

9

3.1.2 Hong Kong

0

4.0 Data Analysis

1

4.1 Hypothesis 1

1

4.1.1 Justification

5

4.2 Hypothesis 2

6

4.2.1 Justification

9

4.3 Hypothesis 3

21

4.3.1 Justification

23

4.4 Hypothesis 4

24

4.4.1 Justification

28

5.0 Conclusions

29

5.1 Limitations

29

5.2 Recommendations

30

6.0 Bibliography

33

Appendix A

34

Appendix B

34

Appendix C

35

Appendix D

36

Appendix E

37

Appendix F

37

Appendix G

38

Appendix H

38

Appendix I

39

Appendix J

39

Appendix K

40

Appendix L

42

Appendix M

43

Appendix N

45

Appendix O

46

Appendix P

46

Appendix Q

47

Appendix R

48

Appendix S

49

Appendix T

50

Appendix U

50

Appendix V

51

Appendix W

51

Appendix X

54

Appendix Y

55

Appendix Z

57

.0 Introduction

.1 Case Background

The Cathay organisation was started their business in Singapore on 1939. Their first cinema is at Dhoby Ghaut. They have the total of three Cathay cinemas. The Cathay Cinemas provide a waiting lounge for consumers, a larger size of capacity area in theaters; build in toilets in every theater room and the extra personalized services which u order of snacks to be delivery to your seating area when the movie starts (Cathay Oganisation Holdings, 2007). It offers 24 hours of show time only in orchard branch and fifty cents lower prices rate for movie tickets.

.2 Competitor Analysis

Golden Village

Golden Village was started in Singapore on 28 May 1992 with the opening of Yishun 10 cinema complex. It was established to develop and operate modern and luxurious multiplex cinemas. Today, Golden Village has become a cinema with comfort, convenience and has a reputation of offering more choice (Golden Village Multiplex, 2007). We can actually buy Golden Village movie tickets via an integrated telephone system, internet buying facilities and also at the AXS stations located island wide. . The ticketing system automatically selects the best seats available at any one time although patrons may choose their own seats via our Internet booking facility.

It offers various types of special theaters like; Gold Class and cinema Europa mainly with a better comfortable of seating area like sofa and personalized facilities of serving red wine and champagne in it and charges a higher rate of ticket prices with the range of $25 to $35 (Golden Village Multiplex, 2007). In the normal theatres, it had designed that the hand rest at the seating can be raised for the comfort for the couples (Golden Village Multiplex, 2007).

Eng Wah

Eng Wah was founded in the 1940s, it was the first cinema operator listed on the main board of the Stock Exchange of Singapore (SGX). The Group is a leading film exhibitor and distributor with 26 strategically located cinema screen halls with a capacity of over 5,300 seats (Eng Wah Organisation, 2006). In May 2004, Eng Wah was the first cinema operator in Singapore and in the world to launch the world's first full 2K (2000 lines resolution) Digital Cinema in its cineplexes, and is still the operator with the highest number of 2K digital screens in Singapore.

The Group's leisure and lifestyle entertainment businesses include cinema operations, film distribution and food concessionaire operations. The Group also owns and leases several commercial properties in Singapore which include the Jubilee Entertainment Complex at Ang Mo Kio and Toa Payoh Entertainment Centre at Toa Payoh (Eng Wah Organisation, 2006).

Shaw Organisation

The Shaw Organisation was founded in 1924. During the late 1980s, the organisation undertook their biggest project and the Shaw House project with 22 storey complex is located in the heart of the city in 1993. The largest hall, Lido One, has a capacity of over 900. It was the first hall in Singapore to bear certification as a THX hall as well as SDDS, DTS, SRD and Dolby SR. To achieve maximum capacity, the Lido projection booth has the ability to "interlock" one print in more than one hall, enabling a popular film to be seen in several halls (Shaw Organisation, 2007). Within the halls, ergonomic 'rocking' cinema chairs with flip-up arms and cup holders were also introduced. Today, Lido One is the largest digital hall on the island (Shaw Organisation, 2007).

2.0 Stage 1: Management Decision Problem Definition

Your client is the management team of a cinema complex, situated about two km from the CBD of a large city. The cinema is part of a large chain and has access to many resources but it is not cheap. Lately, there has been a serious decline in attendance at the cinema.

2.1 Stage 2: Marketing Research Problem Definition

What features of the cinema complex are most important in creating consumer patronage and increasing consumer loyalty?

2.2 Stage 3: Marketing Research Objectives

- To find out if the quality of facility is an important determinant of consumer attendance at the cinema

- To determine the age group of consumers who watch movies at the cinema

- To determine if price is the most important factor affecting consumer attendance at the cinema

- To determine whether time-pressed consumers go to the cinema

2.3 Hypothesis

Hypothesis 1: Consumers who are particular about the quality of facility will go for movies.

Hypothesis 2: Younger people (15-26) are more likely to go out for movies.

Hypothesis 3: Price-conscious consumers are less likely to go to a movie.

Hypothesis 4: Time-conscious consumers are less likely to go to a movie.

2.3.1 Research model

Dependent variable: Consumer patronage to the cinema

Independent variables: Price consciousness, time consciousness, quality of facility, age

3.0 Description of sampling technique used

Top of Form

Bottom of Form

The team has utilised convenience sampling in this marketing research report. Convenience sampling is a non-probability sampling technique that attempts to obtain a sample of convenient elements (Malhotra and Peterson, 2006). The selection of sampling units is left primarily to the researcher (Malhotra and Peterson, 2006). Respondents are selected because they happen to be in the right place at the right time. The table below shows the advantages and disadvantages of this sampling technique.

Advantages

Disadvantages

Least expensive and time consuming

Sampling units are accessible, easy to measure and co-operative

Selection bias

Not representative

Cannot generalise to a population

3.1 Secondary data

The secondary data below are obtained from various sources to help us gain more insight into the problem of declining cinema attendance in recent years. It depicts the demographics of movie-goers and the factors affecting their choice of particular cinemas.

3.1.1 Australia

According to secondary research, movie-going is still most common among young people in Australia. In 2002, nearly 90 per cent of Australia's 14 to 24-year-olds went to the cinema, an average of 10.2 times each (Australian Film Commission, 2007). Teenagers and 20-somethings are the core of the clientele because more of them go to the pictures, and they go more frequently (Australian Film Commission, 2007).

Frequency of cinema attendance by people aged 15 years and over, 1995, 1999, 2006

93 per cent of 15-17 year olds and 85 per cent of 18-24 year olds went to the movies at least once in the 12 months to June 2006. Attendance rates decline with age, dropping to 45 per cent for people aged 65-74 and 27 per cent for people aged 75 and over (Australian Film Commission, 2007) (See Appendix A).

Among people who had been to the cinema at least once in 2006, 43 per cent were aged under 35 years, 19 per cent between 35 and 44, 29 per cent between 45 and 64, and 9 per cent 65 years and over (Australian Film Commission, 2007) (See Appendix B).

Percentage of male and female cinema-goers in various age groups, 1988-2006

Men tend to outnumber women among younger cinema-goers, particularly 18-24 year olds, and this remained the case in 2006. In the 35-49 age group, the gender split has been even for the past two years, while women tend to outnumber men among cinema-goers over 50.

Combining all age groups, women have outnumbered men among cinema-goers since 1988, accounting for 53 per cent in 2006 (See Appendix C).

According to the 2006 U.S. Theatrical Market Statistics, the vast majority of movie-goers say their overall theatre experience is time and money well spent (Motion Picture Association, 2007) (See Appendix D).

About two-thirds of respondents still feel that the theatre offers the ultimate movie-watching experience. Of the segments, younger males are the most likely to prefer the theatre experience (Motion Picture Association, 2007) (See Appendix E).

Those moviegoers who own or subscribe to four or more home technologies were actually more avid moviegoers, seeing an average of three more movies per year than the moviegoer who owned or subscribed to fewer than four (Motion Picture Association, 2007) (See Appendix F).

3.1.2 Hong Kong

According to the findings of "Survey on Movie-going Habits in Hong Kong" in 2001, those who belonged to the age group of '20-29 years old' were most frequent movie-goers (10.4 times), followed by those belonged to '12-19 years old' (7.5 times). Among them, 66.7% and 58.9% of the respective groups were 'occasional' and 'frequent' movie-goers (See Appendix G).

The majority of those aged 30 years or above was 'infrequent' movie-goers and on average, they went to cinemas 3.9 times or less in 2000 (See Appendix H).

Over half of the respondents (55.0%) were concerned that convenient transport was the factor affecting the choice of particular cinemas. Around one-fifth of them agreed that the 'ticket prices' (22.0%) and the 'facilities nearby' (18.2%) were the factors affecting the choice of particular cinemas (Hong Kong Policy Research Institute Ltd, 2001) (See Appendix I).

4.0 Data Analysis

4.1 Hypothesis 1: Consumers who are particular about the quality of facility will go for movies.

I. Primary Data (UON)

From the data, total there are 478 valid responses with 7 people who cannot answer the question. 14.6% felt that quality of facility is the most important factors when going to a movie, 18.4% felt that quality of facility is the 2nd important factors, 18.8% felt that quality of facility is the 3rd important factors, 17.7% felt that quality of facility is the 4th important factors, 13% felt that quality of facility is 5th important factors and 9.7% & 6.4% respectively, 6th and least important factors that quality of facility when going to a movie (See Appendix J).

The relationship we want to establish will be how important of the quality of facility will affect movie-going. Thus, we will need to test the hypothesis results to see whether important of the quality of facility will affect the movie-going.

Some questions to include are:

"Going out for movies is high quality"

For the chi-square test, under relationship of the movie-going affects the quality of facility hypotheses is set as:

H0: There is no relationship between important of the quality of facility and movie-going.

H1: There is a relationship between important of the quality of facility and movie-going.

The total respondents surveyed showed that for those who watched movie a few times a week has 33.3% felt that the quality of facility is most important. Overall, 14.9% respondents felt that quality of facility is the most important when watching a movie. 18.4% respondents felt that quality of facility is the 2nd important when watching a movie and 6.5% respondents felt that quality of facility is least important. This shows that the most of respondents take the quality of facility as an important factor to go and watch a movie (See Appendix K).

At the 0.05 level of significance with 36 degrees of freedom. From the cross-tabulation given, the calculated chi-square had a value of 45.650 and the p-value is 0.13. Thus, when p>0.05, we will not reject the null hypothesis. To conclude, data do support the claim that there is no relationship between quality of facility when watching a movie (See Appendix K).

For the chi-square test, under relationship of the genders affects high quality of movie hypotheses are set as:

H0: There is no relationship between the high quality and genders.

H1: There is a relationship between high quality and genders.

The total respondents surveyed showed that for those females who watched movie felt that it is high quality 22.7% are strongly agree and 46.5% are agree. Those men who watched movie felt that it is high quality 25.8% are strongly agree and 42.2% are agree. Overall, 24% respondents strongly agree that it is high quality when watching a movie. 44.7% respondents agree that it is high quality when watching a movie and 1% respondents strongly disagree that it is high quality when watching a movie. This shows that the most of respondents that are males associating watching movie as a high quality and overall both gender agree that watching movie is a high quality (See Appendix L).

At the 0.05 level of significance with 12 degrees of freedom. From the cross-tabulation given, the calculated chi-square had a value of 10.783 and the p-value is 0.548. Thus, when p>0.05, we will not reject the null hypothesis. To conclude, data do support the claim that there is no relationship between the high quality and gender (See Appendix L).
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From the above analysis, we can conclude that there is no or little affect on the quality of facility to movie going and no or little affect on the gender to high quality.

II. Primary Data (Singapore)

From the data, total there are 33 valid responses. 9.1% felt that quality of facility is the most important factors when going to a movie, 18.2% felt that quality of facility is the 2nd important factors, 15.2% felt that quality of facility is the 3rd important factors, 15.2% felt that quality of facility is the 4th important factors, 21.2% ...

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