Transcript Effects of Internet Word of Mouth on Receiver*s Purchase Intention

Customer’s Motivation towards NOVA
Electronic Shop:
Analysis of Marketing Mix Theory
By:
Hendrik Li
IIM / 9637533
Global Marketing Course
National Chiao Tung University
Outlines
Introduction
Data Collection &Analysis
Research Methods
Discussion & Suggestion
Literature Review
Introduction
Research Background
Research Questions &
Hypotheses
Research Methods &
Limitations
Research Background
• In 2004, the size of the computer and
consumer electronics retail market worth
more than NT$200 billion in Taiwan
• NOVA is one of the biggest players for
consumer electronic retailer in Taiwan
• NOVA using marketing mix theory (Product,
Price, Place and Promotion)
Research Question and Hypotheses
Research Questions:
1. From 4 Ps marketing mix theory, which
factor that drives the customer the most to
go to NOVA?
2. Is there any other factor that make the
customers go to NOVA?
Research Question and Hypotheses
Hypotheses :
H1. From 4 Ps, Place is the most important
factor for NOVA
H2.
Promotion is the weakest factor
Methods and Limitations
Methods
• Qualitative approach
(Secondary data)
• Quantitative approach
(Questionnaire)
• Secondary
Limitations data
• Respondents
Literature Review
Definition
NOVA
4 Ps
Summary
of 4 Ps
Literature Review
Definition of Marketing Mix
The division of groups to make a
particular product, by pricing, product,
branding, place, and quality
4 Ps
Product
A tangible object or an intangible
service that is mass produced or
manufactured on a large scale with
a specific volume of units
Promotion
all of the
communications that a
marketer may use in the
marketplace
Price
the amount a customer
pays for the product
Place
the location where a product can
be purchased. It can include any
physical store as well as virtual
stores on the Internet
Summary of Marketing Mix
Product
•
•
•
•
•
•
•
Functionality
Appearance
Quality
Packaging
Brand
Warranty
Service
Price
•
•
•
•
•
List price
Discounts
Allowances
Financing
Leasing
options
Place
• Channel
members
• Channel
motivation
• Market
coverage
• Locations
• Logistics
• Service
levels
Promo
tion
• Advertising
• Personal
selling
• Public
relations
• Message
• Media
• Budget
NOVA
Revenue for all Taiwan: NT$ 16 billion per year
Visitors per month: 1.200.000 people
NOVA movement :
• NOVA Taipei, July 1996
• NOVA Tai Chung, January 1997
• NOVA Kao Shiung, July 1997
• NOVA Hsin Chu, April 1998
• NOVA Chung Li, August 1999
• ENOVA.com.tw, January 2001
• NOVA Tao Yuan, May 2006
Data Result & Analysis
Product
1. NOVA provides complete and updated electronic products
2. Products that sell in NOVA come with good quality, warranty and services
3. I am satisfied with the products in NOVA
Price
4. NOVA gives a lot good discounts
5. NOVA has good leasing options (pay monthly)
6. I am satisfied with the product price at NOVA
Place
7. NOVA’s location is easy to reach
8. A lot of people from out of town go to NOVA
9. I am satisfied with NOVA’s location
Promotion
10. I see a lot of NOVA’s advertisement
11. I understand NOVA promotion’s message
12. I am satisfied with NOVA promotion activity
13. My biggest reason to go to NOVA because of:
a. the product (7)
b. the price (5)
c. the place (9)
d. the promotion (1) e. Others:
Strong
Disagree Disagree Neutral
1
2
3
0
0
0
0
0
4
0
0
9
Agree
4
17
14
12
Strong
Agree
5
4
3
1
TOTAL
88
83
80
1
0
0
7
3
3
7
14
11
6
3
5
1
1
2
65
65
69
0
0
0
0
3
0
1
10
1
9
5
11
12
3
9
99
71
92
1
1
1
8
5
4
7
9
11
5
0
7
0
5
0
GRAND TOTAL
58
66
62
898
Data Result & Analysis
Effect to the grand total:
Product = (88 + 83 + 80)/898 * 100% = 27.95%
Price = (65 + 65 + 69)/898 * 100% = 22.16%
Place = (99 + 71 + 92)/898 * 100% = 29.18%
Promotion = (58 + 66 + 62)/898 * 100% = 20.71%
Data Result & Analysis
Other test
Q13 :
My biggest reason to go to NOVA because of
a. Product b. Price c. Place d. Promotion e. Others
Discussion
From the data collection and analysis, the conclusion
that we get are:
1. Place is the strongest factor that drives customers
go to NOVA , 29.18% (H1 correct)
2. Promotion is the weakest factor from the
customers’ point of view, 20.71% (H2 correct)
3. Place is also the biggest factor that female
customers chose to go to NOVA
Suggestion
For the future research regarding to NOVA, the
author’s suggestions are:
1. Can find the reasons why NOVA’s promotion is so
weak
2. And what is the effect for NOVA if it strengthened
another P, besides the 4 Ps, like People, Packaging,
etc.
THANK YOU