Cal Poly University Store: A Comprehensive Marketing
Transcription
Cal Poly University Store: A Comprehensive Marketing
Cal Poly University Store: A Comprehensive Marketing Guide Dr. Stern Neill presented June 5, 2013 TABLE OF CONTENTS Executive Summary 3 Research Brief 4 Client’s Current Situation 4 Research Purpose 5 Methodology 6 Conclusions 7 Recommendations Appendix A: Secondary Research 14 Appendix B: Focus Group Research 22 Appendix C: Ethnographic Research 29 Appendix D: Questionnaire Research 43 D1: Student Specific Questionnaire Findings 45 11 D2: Alumni, Faculty, and Staff Specific Questionnaire Findings Appendix E: Works Cited 2 53 60 EXECUTIVE SUMMARY RESEARCH PURPOSE The following marketing guide reflects the research regarding the customers of the University Store. Our main research purpose is to identify the positive and negative aspects of the University Store as perceived by its customers and to better understand their purchasing motivations. Throughout our research we targeted Cal Poly students, alumni, faculty, and staff; however, since the University Store’s primary goal is to serve the students, we placed greater emphasis on them. SECONDARY RESEARCH We fulfilled our research objectives through primary and secondary research. Our methods included the Cal Poly FAQ book for our demographics, numerous websites to relate to other Universities’ Stores, and meeting with our client to discuss their expectations. Based upon these secondary findings, we established our research questions and moved forward onto primary research to further support. PRIMARY RESEARCH Once we identified our specific research goals and the goals of the University Store, we used the following methods of primary research: customer observations, focus groups, personal interviews, and questionnaires. We observed two focus groups, one consisting of loyal customers and the other making up the non-loyal consumer base. We followed up with observing customer behaviors in the University Store to see if responses from the focus groups were similar to actual experiences. Our team conducted the observations in the natural environment of the University Store. We continued our primary research by conducting personal interviews from students in the University Union at various times and dates. We were able to collect more data and insight regarding the students’ personal experiences and perceptions of the University Store. Finally, we developed two questionnaires and distributed one to current Cal Poly students and the other to alumni, faculty and staff. We collected data from a total of 137 persons consisting of 86 students and 51 alumni, faculty and staff combined. CONCLUSIONS Using these methods, we have identified four common themes students associate with the University Store. These themes include: People wanting a more diverse range of products and services from the University Store, they found the University Store to be expensive, there is an inconsistency of Customer Service, and the Convenience of the Store. During our client briefing, we discussed how to find the data to support these themes and clearly present our perceptions. RECOMMENDATIONS This marketing guide further supports our recommendations for the University Store based upon our research methods. The categories for our recommendations include: priority, products, promotion, and price. 3 RESEARCH BRIEF CLIENT’S CURRENT SITUATION The University Store currently provides students with hundreds of textbooks and digital textbooks for purchase and for rent. “Starting Fall 2013, Students will be able to go to the University Store website to compare textbooks from the top retailers and purchase books at the best possible prices, even from the competition” (Nishinaga). They also offer the Express Textbook Pick Up Program which allows students to purchase their textbooks prior to the beginning of the quarter and have them ready for the first day of classes. The University Store also allows students to sell their used textbooks back to the University Store either in person or via the online website during specific times of the quarter. The store also has a tech center that specializes in the most up to date Apple products at competitive pricing [see Appendix A: Secondary Research]. 4 RESEARCH PURPOSE Our main research purpose was to identify the positive and negative aspects of the University Store, and to understand the purchasing motivations of customers. Throughout our research we targeted, Cal Poly students, faculty, staff, alumni, and visitors; however, we focused on the student body. The University Store’s primary purpose is to serve students, which is why we emphasized the student demographic. Some of our specific goals included: • Understanding the customer’s motivations for purchasing from the University Store. • What stores customers were using as a benchmark when comparing pricing. • What are some of the gaps between what is expected from the University Store and what is being offered. We used focus groups as a way to get a general understanding of how student customers perceived the University Store. We had two separate groups, one for “loyal” customers and the other for “non-loyal” customers to see if there were differing opinions. The focus groups offered insights as to what products and services students want and some of the needs that are unmet. During our observations, our strategy was to observe the customer’s behavior while browsing and making their final purchases. We focused on what products the customers were buying and listened to any comments related to their shopping experience. The interview process was used as a means to get students’ personal experiences at the University Store. We focused on asking questions that gave us insight as to how customers perceived the University Store and if there were any gaps between what the store offers and what the customer wants. We also conducted a questionnaire in order to understand aspects of the customer’s experience by asking about their motivations, perceptions, and behaviors. We used this method to help fill the knowledge gaps about what motivates customers to shop at the University Store and what they use as a benchmark for comparing products and prices. Our overall goal was to determine what the positive and negative aspects of the University Store are as perceived by its customers and whether or not there are any gaps between what the University Store offers and what the customers want. 5 METHODOLOGY Throughout this quarter our team has conducted primary and secondary research to find the positive and negative perceptions that students, faculty, and alumni have of the University Store. Our methods include secondary sources, focus groups, and ethnographic research. SECONDARY SOURCES We administered our secondary research to obtain information about the clients current situation. We used multiple sources, cited below, to obtain information about the client, the University Store. Additionally, we looked to uncover information about the University Store’s customers, competitors, and current environmental forces that could potentially be affecting its growth, such as current economic, political, technological, and social trends [see Appendix A: Secondary Research]. Interviews Our team performed individual interviews of Cal Poly students who are also University Store customers to obtain more in-depth information relating to our main research question. We transcribed our individual interviews to ensure that our findings were clearly documented for reviewing at a later time [see Appendix C: Ethnographic Research]. Questionnaires Our team sent out the questionnaire to LinkedIn for alumni, Facebook for current students, and walked around on campus to ask for participation from faculty and staff. For our questioning route we used a closed-ended structure with an openended final question for them to label their current experiences with the University Store. Our final total of respondents was 86 Students and 51 Alumni/Faculty/Staff [Appendix D: Questionnaire Research]. FOCUS GROUPS The class, along with our client Yukie Nishinaga, decided that we would run two focus groups, with specifically student participants. Each team was responsible for recruiting one loyal customer and one non-loyal customer. We decided to avoid biased results; so we conducted a focus group for non-loyal customers (Focus Group 1), and a loyal customer focus group (Focus Group 2). During the recruitment process we focused on recruiting a diverse mix of students. This includes: students from different colleges and different class levels [see Appendix B :Focus Group Research]. ETHNOGRAPHIC RESEARCH Observations We conducted ethnographic research through observing the customers at both the University Store and the Downtown Store. We were able to observed the University Store as a group so we could obtain different perspectives of the store during a specific time. We documented with accuracy the setting of the store and the behaviors of the customers in an attempt to acquire insight about the customers perceptions and motivations for shopping at the University Store. [see Appendix C: Ethnographic Research]. 6 CONCLUSIONS THEME 1: PEOPLE WANT A MORE DIVERSE RANGE OF PRODUCTS AND SERVICES FROM THE UNIVERSITY STORE One of the most common themes that we saw during our research process was the students desire for the University Store to offer a wider variety of products and services. It was a recurring theme that we observed during the focus group, individual interviews and even the questionnaire. While there was a wide variety of products and services that students mentioned as potential products and services that would increases their shopping, there were a specific few that appeared more frequently. A wider offering in the technology center was mentioned by multiple sources, as it is dominated by Apple products at the moment. Many students are not necessarily against Apple products, but prefer Windows and other similar alternatives that are more relatively priced for a college student on a budget [see Appendix C1: Team Assignment 2 Ethnographic Findings]. A service that was widely requested by students specifically was a loyalty or reward program as additional incentive to shop at the University Store. Most competitors, whether Office Max, Staples, or even electronics stores like Best Buy, offer loyalty programs to their customers in an attempt to create a lasting relationship with a customer that will likely be returning soon. Results from our questionnaire showed that 54% of students ‘probably will’ or ‘definitely will’ increase their shopping habits if the University Store had a loyalty program. Only 8% of students said a loyalty program ‘probably will not’ or ‘definitely will not’ increase their shopping habits [see Appendix D1: Student Specific Questionnaire Findings]. This addresses our teams research question because it is specifically answering what customers want from the University Store that it is currently not providing. If the University Store is able to better fulfill its customers expectations, increased shopping should come as a result. 7 “I don’t have a Mac, so it would be nice to have non-Apple products...” THEME 2: THE UNIVERSITY STORE IS EXPENSIVE Throughout this research process, we have found our most common thing amongst all customers to be that the prices at the University Store are high. It did not differ between students, faculty, or alumni. This theme was originally found in a sticky-note exercise from the focus group sessions. Students had to write words down that they associated with the store and this was further confirmed by our questionnaire with a similar question. In the first focus group, a student stated, “I think their clothes are really expensive, which sucks because I really want to buy them but… I can either get a t-shirt or a textbook, but I need to pass my class so I have to get the textbook.” We further researched this theme by finding out an idea of the quality they are expecting, where students normally shop for clothing or supplies, and determining the influence of where the clothing was made. These findings helped us determine how customers justify their criticism of the store’s prices. In order to see their expectations we used our questionnaire to find what they are willing to pay for a Cal Poly sweatshirt as one example. The response showed that 0% would pay over $50.00 and 93% would pay less than $40.00 [see Appendix D]. Exploring this theme is relevant to our research questions because it helps us to understand the negative perceptions of the store and the gaps in its customer’s perceptions. The University Store may utilize these customer expectations to understand how the customer values their products and make adjustments on that basis. “I think their clothes are really expensive, which sucks because I really want to buy them.” 8 THEME 3: CONSISTENCY OF CUSTOMER SERVICE Customer service and the overall ability of the employees plays a large factor in how any business operates and, unfortunately, inconsistent customer service was a common theme that was seen throughout our team’s research process. The overall presence of employees is not a problem, as it seems there is always an abundance of employees around that are easily seen from the uniform green shirts that they are wearing. However, some employees just lack the general knowledge of specific product locations within the store, which hurts the stores greatest advantage of being convenient and, ultimately, can be detrimental to sales. The first mention of the employees inconsistency was from our classes focus group. A few conversations were initiated about how the overall shopping experience was hindered by poor customer service. One student from the focus group stated, “I walked around with a salesperson like around the whole floor looking for where it was and they were looking for it with me and I was like I could have walked around this whole store by myself” [see Appendix B: Focus Group Research]. This unfortunate behavior is definitely a trend as it was also seen in our teams ethnographic research. A customer was overheard saying, “With me it seems like sometimes you go in there and the employees are stuck in one section and they only know what is in that section so they will direct you to someone else” [see Appendix C: Ethnographic Findings]. Part of the employees overall lack of knowledge could come from the fact that the store was just recently remodeled, but since it was a recurring theme in our research it is definitely worthy to note and make the necessary adjustments to make sure it doesn’t continue to be a theme in the future. This theme is relevant to our research process because it is direct evidence as to how customers currently perceive the University Store and its customer service. “It doesn’t seem like the staff is really trained. I could find things faster without them.” 9 “Everything we need is on campus, and very convenient, especially for those that don’t have a car.” THEME 4: CONVENIENCE OF THE STORE For the duration of our research process, we have discovered that one of the most considerable advantages that the University Store currently possesses is its central location on the Cal Poly campus. With its great proximity to the students living on campus, the University Store is able to capitalize on a lot of impulse type of purchases. For example, one student from our individual interviews stated, “I was already on campus, so it was convenient and I didn’t want to have to make an extra trip anywhere and I needed it today, so... yeah” [see Appendix C: Ethnographic Research]. If something is needed for class spur of the moment, students usually turn to the most convenient option during a potentially stressful situation. Although the University Store is already considered to be extremely convenient, it needs to continue to make strides even if they are only small improvements. Creating the self-serve scantron station has saved students from having to wait in line for only a single item. If students perceive the store as being convenient, they will be more motivated to return again at a later date knowing that their shopping experience should be enjoyable, or at the least know it won’t be an unpleasant one. During our ethnographic research we observed many students citing how convenient the University Store is, but there is always room for improvement. Students expect the University Store to carry all of the necessary supplies required by their classes, but sometimes the store isn’t able to fulfill all the students needs. This was considered an issue by one of the engineering students in the focus group who stated, “I am taking CPR right now, and I needed a first aid kit, it makes it so much easier for those of us who are taking the class” [see Appendix B: Focus Group Research]. This is relevant to our research question because it gives us a perception of how the general customer of the University Store views their shopping experience. Multiple sources have stated that the University Stores convenience is their main reason for choosing to shop there, but it must continue to make subtle changes to continuously improve upon itself to motivate customers to return. 10 RECOMMENDATIONS: THE FOUR P’S I: PRIORITY Make essential products more easily accessible to students. Many customers do like the new layout of the store, but desire a more efficient way to get the supplies they need quickly. Through our research, especially in observations, we noticed that students are in a rush when going into the store and are usually only there for quick supplies. In some cases customers do have time to shop around, but students would like it to be more oriented around them since that is its main purpose. We recommend that a vending machine for pencils, scantron packs, and other small supplies be implemented in the store or outside the store along with a table or small section in the very front of the store to decrease the amount of time students need to spend before classes. There is currently the self-service scantron section which students appreciate, but more supplies are necessary in the small amount of time they have. 11 II: PRODUCTS Be more consistent in product availability from Cal Poly Downtown and the University Store’s Website. Based on secondary and primary research, we have found that there are many inconsistencies of products offered from the University Store, Cal Poly Downtown, and the University Store’s website. When looking at the University Store’s website and comparing it to the physical store locations, we noticed that the website only offers Hurley as name brand apparel. The University Store located on the Cal Poly campus offers more name brand apparel such as Nike and Under Armour. The website also lacks the variety of apparel, supplies, and gifts that can be found in the University Store and Cal Poly Downtown. In our survey, we found that 77% of students and 69% of non-students never visit the University Store’s website. We recommend that the University Store, Cal Poly Downtown, and the University Store’s website offer more consistent products. This will provide customers with a convenient to purchase what they want without the tedious task of search through both storefronts and the website to find the product they wish to purchase. III: PROMOTION Utilize social media more effectively to promote sales or new products. Students are very involved in using social media, but the store doesn’t take advantage of this medium. During our research process, we found many students are unaware of current sales that the store is attempting to promote. One of the students in the focus group expressed his frustrations stating,“Most of the time they do it’s low key, and you really don’t know about it” [see Appendix B: Focus Group Research]. There are signs inside the store stating that apparel and other items are on sale, but this assumes that the customer is already inside the store. We recommend that the University Store actively promotes itself through channels that the students use most often to effectively reach the market that they are targeting. Students suggest that the University Store should advertise sales on Facebook, and they would shop there more frequently. Social media channels like Instagram, Facebook, or Pinterest are an effective and efficient channel to reach many customers with minimal effort. 12 IV: PRICE The University Store has an exceptionally large range of clientele serving everything from affluent alumni who would shop at stores like Neiman Marcus to college students who struggle to make ends meet and shop at thrift stores. For that reason, the University Store should implement a three tiered pricing strategy to satisfy all customers. Budget Products These would be low end products, solely focusing on low cost, quality is not a concern. This demographic is not concerned about brand names. Moderate Designer Generally the products in the University Store are moderately priced, and this portion of the clientele is satisfied. This segment would be interested in products made in America, brand names, and high quality. The University Store should emphasize the quality of these products via signage in the store signifying “Made in America” or “University Store Boutique.” This line of products would appeal to the Neiman Marcus crowd who shops at the University Store. This segment would be interested in products made in America, brand names, and high quality. • T-Shirts- $12-$15 basic logo T-Shirt. • T-Shirts- ($15-$25) • Hoodies/Sweatshirts- $25 sweatshirts or hoodies. • Hoodies/Sweatshirts- ($40-$50) some of these can be branded, Hurley, Under Armour, Nike, Etc. • Supplies- unbranded notebooks, pens, paper, etc. that students on a low budget can purchase. • Supplies- the current supplies offered at the University Store (i.e. the Cal Poly branded notebooks are are moderately priced between $3 to $4.50). • Cal Poly items like lanyards, keychains, magnets, or gifts that students can afford to purchase. Students really want to support Cal Poly, and wear the logo. • T-Shirts- ($25+ t shirts) • Hoodies, sweaters, cardigans, business apparel priced over $50. • Possibly licensing our logo to Victoria Secret for their popular Pink line of apparel. Victoria Secret’s Pink line is common at campuses like Ohio State, Arizona State University, and many more). • Under Armour jackets, Nike high performance apparel, and Hurley board shirts. Through the implementation of a three tiered pricing structure, the University Store can communicate value through multiple channels. The overlying theme among students, alumni, faculty, and staff is that the University Store is “expensive,” but given an opportunity, that is an expected response. Prices cannot simply be lowered to satisfy all budgets, and the University Store certainly cannot have sales all the time, because that is not feasible. The University Store would ideally satisfy all customer demographics. 13 APPENDIX A TEAM ASSIGNMENT 1: SECONDARY DATA FINDINGS CLIENT SYNTHESIS CLIENT OFFERINGS Formally known as the El Corral Bookstore, the University Store, with a new name provides much more than just books. The “bookstore” was founded in 1933 and was always known for its hands-on participation with the university since the day it was named after the college’s horse corrals (El Corral). For example, in 2012 the store held a contest for a new name. This contest allowed students to be a part of their campus store and feel even more connected. Phillip Davis stated, “We want to embrace who we are today while preserving the past” (El Corral). COMMUNICATION AND DELIVERY Website: After the name change to The University Store, the website changed its offerings and product lines to reflect The University Store’s new brand identify. The online store now has a more modern and updated look with a simple way to find the products one needs. From the front page one could find alumni wear, student wear, food and beverage gifts, textbooks, technology, and so much more (Cal Poly Website). It keeps its website up to date with new offers such as sales and their new textbook comparison offer for the Fall Term. The University Store even allows students to pay with their Poly Card for any item they order online. This makes it convenient for parents to transfer money to their children for the supplies they need. “Rainbow” and trinkets to give to the family. Cal Poly-made food and wine Is also sold for those that want to bring a touch of Cal Poly into their kitchens. More and more clothing products have been offered ranging from alumni wear to athletic and lounge wear. Students have the option to buy their textbooks in the store as well. They are conveniently located in a lower section of the store and categorized by subject. Many students choose not to do this because of the high prices, but the University Store has created a way to compare their prices to other online stores in order to give students the best price. If a student still does not want that price, they have the option to rent the books for 60% off for the quarter. This makes it much more affordable for students that are unable to spend $300 or more per quarter on books. E-books are also becoming a lot more popular with the increased sales of tablets and iPads. This new craze is beginning to make libraries and bookstores feel stymied by publishers (Gibbons). E-books may sell to customers at a decent rate, but the bookstores pay much more for the license fee to use them. The University Store offers over 100 titles so far to download electronically and students may not realize that opportunity. Other Locations: There is a branch of the University Store in downtown San Luis Obispo that is convenient for visiting families and tourists. There are opportunities to improve the downtown store in order to reach the San Luis Obispo community and beyond Cal Poly students. In-Store: After a newly organized floor plan for the store, items are easier for customers to access. In the technology section there are computer experts to help you with any concern, and to sell all of the newest products in technology and accessories. The University Store has a broad assortment of gifts such as the popular flip flop brand 14 Figure A.1: University Store SWOT Analysis Strengths • Only store on campus • Easy location for on-campus students • Centralized location, easy to access from all points on campus • Provides for Students, Faculty, Alumni, and Visitors • Has a monopoly on Cal Poly Edition Course Readers • Well-defined market in college town • Constantly evolving product line, meaning there is always an opportunity to sell new product Weaknesses • High Prices • Hours of Operation (Closed Sundays and not open late) • Long lines during busy hours (UU Hour and at the beginning of the quarter) • Accessibility for off-campus students (parking) • Customers want to purchase textbooks in the textbook section • Customer experience is inconsistent. • Customer service inconsistent • Product offerings are inconsistent amongst University Store, Cal Poly Downtown, and the website Opportunities •Purchase Textbooks in the lower level •Loyalty Card for repeat customers •Online shopping expansion •Promotional Sales Advertisements (Emails) •Cater to trends (sustainability) •Brand Expansion •Advertise the History of the Landmark •If product line is diversified, there is a potential to attract more customers •Technology Accessories from Cal Poly •If utilized effectively, social media (i.e.Instagram or Facebook) could attract customers Threats • • • • • • • • • Low student income levels Recovering economy Amazon SLO Textbooks Staples Costco Chegg Target Textbook trading amongst students 15 CUSTOMER SYNTHESIS The Cal Poly University Store accommodates many different types of customers along with a variety of needs. As presented by Yukie Nishinaga, the customer group for Cal Poly University Store includes Cal Poly students, faculty, staff, alumni, community members, and area visitors (Nishinaga, 2013). As of fall 2012, there were a total of 18,679 students enrolled at Cal Poly San Luis Obispo (Institutional Planning and Analysis, 2012). The majority of current Cal Poly students are part of the “Millennial Generation” which encompasses those aged between 13 and 29 (Keeter & Taylor). Specifically, the average age of students at Cal Poly in 2012 was 20.2 years old while 96.9% of the student body was under age 25 (Institutional Planning and Analysis, 2012). Some characteristics of this generation group include being tech savvy and impatient (Ippolito, 2012). The needs of current University Store customers reflect these characteristics in several ways. Being a more tech savvy and impatient generation, the Cal Poly student customers want a fast and easy way to purchase goods at an affordable price. They are more likely to take their time and shop around to find the best deals (Rempe & DeVito). With the cost of tuition steadily increasing, this is even more reason for students to compare pricing on textbooks and other school supplies (Mustang Daily, 2012). Customers are looking for ways to be more efficient with their time and money; this includes the amount of time they spend either waiting in line to purchase an item in-store, or the shipping time from an online source. They also want the best value for their money both at the time of purchase and after. When purchasing textbooks, students want to find the best deal, yet they also want to be able to resell the textbook back and get a reasonable amount for it (Mustang Daily, 2012). The student body as a whole consisted of 44.9% female and 55.1% male; however, at the post-baccalaureate level, there are 73.4% women and only 26.6% men (Institutional Planning and Analysis, 2012). Students can be further segmented by the college in which they are enrolled, as seen in Figure A.2 on the following page. Customers are looking for ways to be more efficient with their time and money; this includes the amount of time they spend either waiting in line to purchase an item in-store, or the shipping time from an online source. They also want the best value for their money both at the time of purchase and after. When purchasing textbooks, students want to find the best deal, yet they also want to be able to resell the textbook back and get a reasonable amount for it (Mustang Daily, 2012). However, the University Store not only serves the students, it also caters to many of the greater San Luis Obispo residents including those employed at Cal Poly and alumni. A 16 head-count for fall 2011 showed a total of 1,210 faculty personnel and 1,235 staff for this campus (Office of Institutional Planning and Analysis, 2011). Of the more than 2 million CSU alumni, approximately 130,000 come from Cal Poly San Luis Obispo (Cal Poly San Luis Obispo). According to the 2011 US Census Bureau, the estimated population for the city of San Luis Obispo is roughly 45,525 (U.S. Census Bureau, 2011). Considering the University Store has a variety of customer demographics, the wants and needs of these customers are going to differ. Some knowledge gaps include the proportion of University Store shoppers that are faculty, staff, alumni, and community members. At this point, another gap is the rate at which customers are purchasing the variety of merchandise available at the University Store. We also do not know the demographics of the general population that would frequent the University Store or Cal Poly Downtown. And finally, we do not know how college segmentation might affect the customer experience, behaviors and needs. For instance, the faculty, staff, and community are not as likely to walk into the University Store in search of textbooks and supplies, their needs are not the same as a student. The faculty, staff, alumni, and community’s needs might be the ability to find apparel and other accessories to represent their local university without having to hassle with long lines of students buying textbooks and other items they may need. College Ag, Food & Env. Undergrad Post Baccalaureate Graduate Total % of Total 3,644 - 84 3,728 20.0% 1,453 - 80 1,533 8.2% Engineering 5,007 - 404 5,411 29.0% Liberal Arts 2,623 - 108 2,731 14.6% Orfalea Business 2,297 - 37 2,334 12.5% Science & Math 2,575 111 162 2,848 15.2% 81 13 94 0.5% 17,680 124 18,679 100.0% Sciences Architecture and Env Design Other University Total Figure A.2: Breakdown of Student Population by College 17 875 COMPETITOR SYNTHESIS Competition Matrix Marketing Strategy Key Strengths Key Weaknesses Textbooks (Amazon) Textbooks sales are targeted at cost savvy students. •Low prices. •More variety. Shipping (cost and time). Textbooks (Student Exchange) The Facebook group “Textbook Exchange” is where students advertise books they want to sell and buy. •Cheap •You can get past editions with notes. •No tax. •Students meet with another student they do not know. •It may be difficult for two students to set a time to meet up. Office Supplies (Target) Target in SLO is a popular one-stopshop for Cal Poly students. •Low prices •Students can purchase groceries and office supplies simultaneously. •Location is far away from campus. •Supplies are often picked over at the beginning of the quarter. Electronic Devices (Apple Store) Apple is marketed as a “hip” company. Students want the experience of shopping at the Apple Store and purchasing their products, because it’s trendy. •Going to the Apple store is an experience. •The Apple Store is usually very busy. •Appointments for problems with a computer need to be scheduled in advance. Figure A.3: Competition Matrix TEXTBOOKS CALIFORNIA POLYTECHNIC APPAREL The University Store’s previous focus was on textbooks; however, the focus is shifting towards other products and services. The University Store faces a great deal of competition in regards to textbooks. As student’s search for the lowest priced textbooks, the University Store is expanding its options (textbooks rentals, ebooks, and online textbooks). The University Store has a monopoly on special “Cal Poly” edition textbooks and readers. Collegiate bookstores are facing increased competition from Internet sites such as Amazon and EBay (Daily Herald 2010). The University Store can adopt a pricing strategy that the Brown University Bookstore does, which is adjusting their prices to compete with Amazon (Daily Herald 2010). The University Store is the largest retailer for Cal Poly apparel and merchandise. The University Store along with it’s online website and Cal Poly Downtown store sell thousands of Cal Poly branded items (everything from t-shirts and sweatshirts to key chains and license plate frames). OFFICE SUPPLIES ELECTRONIC DEVICES The University Store sells many electronic devices and software, some at a reduced price to students. The University Store sells a wide range of computers including Apple and PCs. It also sells tablets, MP3 players (iPod), calculators, and other electronic gadgets. The University Store sells a wide range of school supplies including notebooks, writing utensils, student class kits, and much more. 18 Figure A.4: Table of Competition Competitor Category Textbooks List of Competitors Level of Competition •SLO Textbooks •Barnes and Noble •Online books sites: Amazon, EBay, AbeBooks, Kindle Books, Chegg, and many more. Very High •A Cal Poly student run Facebook Page “Textbook •Student to student textbook exchange. •OfficeMax •Staples •Target As a business, the University Store is expected to provide its customers with all the necessary products for their success. There are many environmental forces that come together in the marketplace that help form the consumer’s decision when purchasing a product. Fully understanding these forces can help the University store to boost sales by adjusting to trends in the market and compensate for customers purchasing practices in the future. Among these many factors include the economic and political trends, which the University Store can use to help assess its current situation in the environment and adjust accordingly. ECONOMIC TRENDS Exchange.” Office Supplies ENVIRONMENT SYNTHESIS Very High •Costco There are many economic factors in the environment that have an affect on the purchases made by students in the University Bookstore. The recession that was in full effect only a few years has now started to fade, but all customers of the bookstore (students, parents, faculty, etc...) are still recovering and often search for the best deal even if it is at a small inconvenience (Anderson). However, even with the recession fading, students and parents haven’t seen a reduction in tuition fees. In fact, as evidenced by the chart below, Cal Poly University has on average seen an increase in tuition of approximately seventeen percent per year over the past ten years. Cal Poly Apparel •Prep Sportswear POLITICAL TRENDS •Football Fanatics •CBS Football Fanatics •There are other online Low entities that sell a minimal number of Cal Poly gear. Electronic Devices •Best Buy •Target •Apple Store •MacSuperstore •Costco Very High Cal Poly and the University Store’s success is dependent on the amount of funding provided by the state to the school. However, the school has been faced with many cuts in the past and the last time Cal Poly University received aid was during the 2010-11 school year. Therefore any amount of state funding is an increase that could potentially help in reducing costs to the students. California governor, Jerry Brown, passed proposition 30 in January of this year that would increase funding to the UC and CSU by $250 million each (California Faculty Association 2013). This is great news for Cal Poly, as a CSU, but even with the increase in funding for this year Cal Poly is still receiving over $20 million less than it did five years ago from state funding (Natividad 2013). Regardless, it is a positive sign that Cal Poly University will be receiving a large amount of funding from the state. The University Store employs an estimated 150 employees at their store on campus which is made up of full-time and parttime faculty that includes federal work study program students who receive 19 financial aid (Federal Work Study 2013). This helps reduce the University Store’s operating costs by having the employees salary partially paid for through state or federal aid rather than completely out of the Cal Poly Corporations pocket. TECHNOLOGICAL TRENDS Undoubtedly the most influential factor affecting the success of bookstores has been the advent of E-readers and electronic tablets in order to replace the traditional textbook, giving the opportunity to bring more affordable textbooks to the masses. This has offered students a multitude of opportunities in affordable education over purchasing traditionally expensive textbooks, and as a result college bookstores have began not only offering digital versions of textbooks, but also the e-readers and electronic tablets necessary to view them. However, while it is easy to fall under the perception that electronic textbooks are becoming the immediate wave of the future, a study done by OnCampus Research discovered that “74%” (“College Students” 2010) still prefer using printed textbooks when possible and when affordable. In fact, as of 2010 the marketshare for digital textbooks was only “0.5%” (Reynolds 2010). Figure A.4: Breakdown of Total Textbook Market (DeVito) Despite this, a comprehensive study down by MBS Direct that projected the trends of digital textbooks in higher education has showed that the market share will only go up from now. Growth of digital textbook sales are heavily influenced by: • pricing and availability of e-textbook readers and content, • The advances in digital textbook technology, and • The increased growth in utilizing online learning solutions. With much of the groundwork for the proliferation of the industry already in place, including the wild success of tablet hardware including the iPad, and the growth of other e-readers and advanced smartphones, it is only a matter of time before digital textbooks reach “industry-transforming levels”, as illustrated by the following graphs (Reynolds 2010). The following charts from the research article “Textbook Insights:What is in Store for the College Bookstore?” by DeVito and Rempe breakdown the current textbook market, in addition to how much digital sales are projected to grow. Figure A.5: Five Year Projection of Digital Textbook Sales (DeVito) 20 SOCIAL TRENDS Another crucial movement in recent focus has been the trend concentrating on sustainability on college campuses and consequently their university bookstores. With increasing concerns on both the parts of students and campus administrators, today the focus on sustainability reaches past dormitories and “onto the shelves of the campus bookstore” (BN College). While digital textbooks may seem like the first choice in reducing the carbon footprint of a university bookstore, companies including Barnes & Noble have taken the concept of sustainability to an increased level by offering an entire array of eco-friendly recycled school supplies including “notebooks, totebags, and paper” (BN College) throughout their college campus bookstores nationwide. It is also important that bookstores have now become more than an outlet to purchase textbooks, but instead have become places to sell the brand of a university. According to the interim director of Cal Poly’s University Bookstore Philip Davis, “Textbooks are becoming less of a focal point” (Mustang Daily), necessitating the need to rename the previously known El Corral Bookstore to the University Store in order to reflect the increasingly diverse array of products being offered aside from the materials required for class. It is no secret that the sales of actual books in campus stores are declining. The National Association of College Stores Foundation found that university stores must begin branching out- otherwise “they won’t survive” (Young). Campuses all over the country have begun preparing for a bookless future, eliminating shelves in favor of multimedia stations, with many store managers “hoping to drop the word ‘book’ from the sign out front” (Young). Despite this, some conflicting reports including a finding published by Harrison Interactive have noted “textbooks and class materials dominate the college bookstore business” (DeVito). Even though the quintessential textbook is no longer the main focus of university bookstores, the main mission of said stores nationwide is to offer a convenient source of textbooks, which for generations was an unchallenged role. Area Trend Implication Economic In addition to the climbing tuition fees, there has been an increase in the number of students receiving financial aid Customers have less disposable income to spend and, therefore, the University Store must attempt to keep prices low through means such as its used books, buy-back program and textbook rentals Political Governor Jerry Brown passed prop 30 to provide the UCs and CSUs with $250 million in funding The University Store may see an increase in funding depending on how the money is allocated, but the University Store must still look to take advantage of other federal aid like the work study program to reduce operating costs Technological Students are enjoying the use of e-books and tablets as an alternative to the hard-copy The University Store must take advantage of the opportunity to sell e-books and digital software through it’s website as a way to lower operating costs Social Many students are moving towards sustainability and show their concerns with their purchases of many “green” and eco-friendly products The University Store will need to grasp the concept of sustainability as well to reach part of the market that is concerned with ecofriendly products Figure A.6: Scenario Analysis Figure A.7: Types of Customers Loner •Goes to the bookstore to pick up supplies, then leave. Social •Goes to the bookstore with a friend. •Does not need any items, but may see something that catches his or her eye. Explorer •Wonders around bookstore during class, or simply to kill time. 21 APPENDIX B: QUALITATIVE RESEARCH- FOCUS GROUP Date: May 1st, 2013 (Wednesday) Times: 10AM-11AM, Focus Group 1 (Non-Loyal Customers) 11 AM-12 PM, Focus Group 2 (Loyal Customers) RESEARCH QUESTION The research questions our team is trying to answer include: What are the positives and negative aspects of the University Store, as perceived by customers, and what could the University Store do to better satisfy the wants and needs of its customers. QUESTIONING ROUTE We chose a questioning route that began with simple questions and led to a more complex question set. We also began the focus group to focus on the positive aspects of the University Store, and ended with the negative aspects. moderated by Garrett and Audrey. Focus group #2 (Loyal) was moderated by Jaime and Brandon. Having two moderators was beneficial because it allowed a better discussion. SAMPLING STRATEGY The class, along with our client Yukie Nishinaga, decided that we would run two focus groups, with specifically student participants. Each team was responsible for recruiting one loyal customer and one non-loyal customer. We decided to avoid biased results; we would have a focus group for non-loyal (Focus Group 1), and a loyal focus group (Focus Group 2). During the recruitment process, we focused on recruiting a diverse mix of students: this includes: students from different colleges, and students of different class levels. Participants of both focus groups, including their demographics, are outlined in Figures B.1 and B.2 INCENTIVES Cal Poly Corporation provided a $5 Campus Dining gift card. Dr. Neill provided coffee, water, juice, and doughnuts from SLO Doughnut Company for all participants and moderators. MODERATORS Four students volunteered to moderate the focus group, and were approved by Dr. Neill. Two students moderated each focus group session. Focus Group #1 (Non- Loyal) was 22 FOCUS GROUP GUIDE Good morning/afternoon and thanks for joining our discussion of the University Store. My name is ________. Overview We’ve been asked by the University Store to help them get information from their customers about how the university can better serve you. You were invited here because we would like to get your input. Ground rules There are no right or wrong answers. We expect that you will have different points of view. Please feel free to share these even if they differ from what others have said. We’re here to express our opinions and ideas. We’re recording the discussion because we don’t want to miss any of your comments. So, please speak up, and let’s have one speaker at a time. Your comments are confidential, and no names will be included in any reports. Opening Question Let’s begin. I’d like to learn more about each of you by going around the table (name, college/school, and year). Introductory Question/Exercise Post it Exercise- post one thought per post it. (5 mins max) Then have focus group participants sort the Post it Notes into categories to get them talking (i.e. facilitate discussion). They will group them into common categories. Use them to sort similarities and unfamiliarity. Transition Question What are the reasons for using the University Store [motivations]? Key Question What do you particularly like [dislike] about the University Store [perceptions/ associations]? Ending Question What products/services would make you a satisfied [loyal] customer? 23 MODERATOR ANALYSIS Both moderating groups used the same focus group guide; Garrett and Audrey moderated Focus Group 1 (non loyal), and did an excellent job for their first time moderating a focus group. They used the guide to facilitate discussion, towards the end they were operating on an “impromptu basis.” They both did an excellent job at facilitating discussion. They both used probing, which resulted in very beneficial information for the groups. # Jaime and Brandon moderated the second focus group (Loyal). Even though they did not follow the guide exactly, we were able to get good information from the participants. Brandon was an employee of the University Store, which in my opinion slightly skewed the discussion. Overall, they did a good job moderating, and used probes in an effective manner. Figure B.1: Unloyal Focus Group Name Gender College Demographics Year Female Science and Math (COSAM) Uses the bookstore 2-3 times a quarter. 2nd Phillip M. Male College of Architecture & Environmental Design (CAED) Uses the bookstore once a quarter. 2nd Brogan H. Female College of Business (OCOB) Uses the bookstore less than once a quarter. 2nd Jenna C. Female Liberal Arts (CLA) Uses the bookstore once a quarter. 2nd Nicholas S. Male College of Engineering (CENG) Uses the bookstore 2-3 times a quarter. 4th Antonio R. Male College of Engineering (CENG) Uses the bookstore once a quarter. 4th Sam E. Female College of Agriculture (CAFES) Uses the bookstore 2-3 times a quarter. 4th Gaby A. 24 Name Gender College Demographics Matt Male OCOB Uses the bookstore 2-3 times a quarter. Melissa Female CAFES Uses the bookstore once a quarter. Morgan Female COSAM Uses the bookstore 2-3 times a quarter. Patrick Male CENG Uses the bookstore 2-3 times a quarter. Carlos Male CENG Uses the bookstore 2-3 times a quarter. Emily Female OCOB Uses the bookstore 2-3 times a quarter. Mark Male CLA Uses the bookstore 2-3 times a quarter. Year 2nd 2nd 2nd 1st 3rd Transfer 2nd 4th Figure B.2: Loyal Focus Group THEMES The University Store is Expensive The University Store is Convenient Customers Want a Loyalty Program Sales Would Encourage Customers to Shop More Frequently The Textbook Buyback Program Needs Reworked 25 THE UNIVERSITY STORE IS EXPENSIVE ANALYSIS:# Overall, students feel that the University Store is expensive for many products. Students expressed that they could find textbooks cheaper online, on sites like Amazon. Students turn to websites like Chegg to save on used or rental textbooks. The overall consensus of students was that they could purchase products cheaper elsewhere (i.e. Camelback water bottles or notebooks). Students recognize that the University Store sells printer ink; however, they usually purchase it off campus because it is cheaper. Students genuinely enjoy the apparel selection at the University Store, but they wish it were cheaper. EVIDENCE: THE UNIVERSITY STORE IS CONVENIENT ANALYSIS: There was a strong sentiment among students that their main reason for being a University Store customer was its strong convenience factor. For students with heavy schedules requiring them to stay on campus for extended periods of time, and especially for on campus residents, the wide array of supplies the store carries at such an accessible location outweighs any perception they may have about the price of the products. EVIDENCE Loyal Loyal 16:56 (Engineering, 4th) How you see the University Store: “I feel like SLO is a really small town with not many option, with the University Store have everything student’s need, they are able to raise prices. They take advantage of that instead of trying to help students out.” 6:15 (Engineering, 1st Year) “Personally I feel that everything we need is on campus, it makes it so much more convenient for those who don’t have a car... you can get almost everything you need there.” 17:27 (Science and Math, 2nd) “You’re buying the brand.” 7:04 (Engineering, 1st Year) “I am taking CPR right now, and I needed a first aid kit, it makes it so much easier for those of us who are taking the class.” 24:30 (OCOB, 2nd) “I’ve rented books from them before, but I even found, once I discovered Chegg online, they rent the books for cheaper than them.” Non Loyal RESEARCH QUESTION 9:35 (Liberal Arts, 4th Year) “Especially a sweatshirt, a sweatshirt shouldn’t cost $60.” This addresses our team’s research question, because it is answering what customers like about the University Store RESEARCH QUESTION This addresses our team’s research question, because it is answering what customers do not like about the University Store. 26 Customers Want a Loyalty Program Analysis: Analysis: Customers (students) are not impressed by the frequency of sales within the University Store. Some customers only shop for gifts or apparel, when the University Store hosts their quarterly sales. Students suggest that the University Store should advertise sales on Facebook, and they would shop there more frequently. Students also express frustrations about “low key” sales, and how they are not advertised. Students would browse the store more frequently, if there were sales. Students would be more loyal to the University Store if they had a loyalty program. Students agree that there is no incentive for them to purchase textbooks, apparel, or supplies from the University Store; however, if an incentive program were implemented, they would be more likely to shop there. A punch card is the recommended incentive program that customer’s recommend. Many students stated that if there were an incentive program for apparel, they would be more inclined to purchase it, since they cannot buy it elsewhere. Non Loyal 29:10 (AG, 4th) “Even if you went and bought your books, and they gave you a couple notebooks for free, that would be awesome, because I am already going to need this. Some kind of school supply would be nice.” Research Question: Non Loyal 16:10 (AG, 4th) “Only when its like that one sale day that’s once a quarter, its like the best day of the year, you know.” Loyal 11:06 (Engineering, 1st Year) “Most of the time they do its low key, and you really don’t know about it.” 11:37 (Science and Math, 2nd) “If they had sales on Cal Poly clothes, I would go in there a lot more.” This addresses our team’s research question, because it is answering what customers want from the university store, so they would be more loyal customers. SALES WOULD ENCOURAGE CUSTOMERS TO SHOP MORE FREQUENTLY 27 THE TEXTBOOK BUYBACK PROGRAM NEEDS REVAMPING Analysis: The current textbook buyback program needs revamping in order for students to utilize it, and be more committed to the University Store. Students express frustrations about not understanding how the program works. Students suggest, that if the University Store revamped this program, they could save a lot of paper, and make a lot more money. Many customers are frustrated because the pricing program for buying textbooks is not consistent. Non Loyal 22:06 (Liberal Arts, 2nd) “They also need to be more organized about when they buy back books, because I know it has happened to me and several people, they won’t buy a book back one quarter, then they will buy one at a higher price last quarter, because they have run out of books.” 22:49 (AG, 4th) “I did it my freshman year fall quarter, and I realized how dumb it was… I haven’t used it since then.” (Referring to using the University Store’s buyback program). 20:16 (AG, 4th) “I find the whole buying back textbooks through them is like really frustrating… it doesn’t make sense to me… I think they should do a better job and they could make a lot of money because everyone is trying to get rid of their textbooks, and that’s like saving paper, I feel like they should change that whole spectrum.” 28 APPENDIX C: ETHNOGRAPHIC FINDINGS FIELDWORK PLAN RESEARCH QUESTIONS What are the positive and negative aspects of the University Store as perceived by customers? What could the University Store do to better satisfy the wants and needs of its customers? SAMPLING STRATEGY As a team we went to the University store on Tuesday, April 30, 2013 at 11:15, a time we consider to be busy and on May 7, 2013 at 1:15 PM, allowing us to take note of everyone that walks into the store to observe their behavior while shopping in each section. We want to find out what customer’s final purchases are, and their perceptions about that specific shopping experience. We interviewed a handful of customer’s about the products they were purchasing, and the motivations behind their purchases. We interviewed customers who seemed to not be in a rush. We also did observations, which are listed below. TIME AND PLACE OF OBSERVATIONS # # # # # # •# •# •# •# •# •# Tuesday, April 30, 2013 11:15 AM - 12:15 PM: University Store Tuesday, April 30, 2013 4:30 PM-5:00 PM: University Store Thursday, May 2, 2013 7:15 PM-7:45 PM: Cal Poly Downtown Tuesday, May 7, 2013 4:30 PM-5:00 PM: University Store Wednesday, May 8, 2013 2:05 PM- 2: 25 PM: University Store Wednesday, May 8, 2013 4:30 PM- 5:00 PM: University Store OBSERVER’S ROLES We decided that the team would act as observers, with exception to Kelsey who acted as a participant on May 7th, 2013. Kelsey purchased a Cal Poly women’s t-shirt for her mother, for Mother’s Day. Many customers’ seemed to be in a hurry during our initial observation at the University Store (Observation #1); however, we were able to interview some customers. Each specific chart identifies each team member’s observer role. INTERVIEW GUIDE Our questioning route relates to our research question in the fact that we want to understand the customer’s motivations behind purchasing items from the University Store vs. elsewhere. We want to understand what customers believe are the positive and negative aspects of the University Store. Our ending question will answer what products the University Store should carry to better satisfy the needs and wants of its customers. An outline of the two sets of interviews each team member conducted can be seen in Figures C.1 and C.2. 29 QUESTIONING ROUTE •Date: •Place: •Time: •Interviewer: •Interviewee: Opening Interviewer: Hello ___________, how are you today? Interviewer: Can you tell me what you’re studying, and a little bit about yourself? (Purpose is to get interviewee comfortable and talking.) Interviewer: Where do you live? (Get an idea of the demographics of people living on and off campus and see how their answers to following questions are related to accessibility of the University Store vs competitors) Interviewer: Do you have a car with you at Cal Poly? (How accessible competitive stores are vs the University Store) Interviewer: Where do you like to shop for school supplies? (Assess the quality of products that they are searching for/ assessing amount of disposable income) Transition Question Interviewer: What usually brings you to the University Store? (Determine motives for shopping at the University Store in general) Interviewer: What reason or reasons do you have for shopping today? (Determine specific motives for shopping at the University Store today) Primary Question Interviewer: Can you tell me about specific positive and negative experiences you have had at the University Store? (Customer perceptions of the University Store) Interviewer: Can you tell me a little more about those experiences? (Information Probe) 30 Key Question Interviewer: What products or services would you like the University Store to provide? Interviewer: What do you think of the location of the University Store? (Perception of convenience [positive or negative perception?]) Interviewer: When purchasing textbooks and school supplies where do you purchase them? (Does this satisfy your wants/needs?) Interviewer: Could you explain why you choose to buy from there? Ending Question Interviewer: If you could change anything about the University Store, what would you change, and why? Interviewer: Thank you so much for helping me with my research. Interviewer Matt Brandt Andrew Bui Brianna Luce Kelsey Peters Anastazia Scott Interviewee Spencer Brady H. Timmy Jen Mike Major History Applied Math Mechanical Engineer Business Information Systems University Store, Poly Campus University Union Plaza Starbucks University Union University Union University Store, Poly Campus Date May 9, 2013 May 8th, 2013 May 8, 2013 May 10, 2013 May 9, 2013 Time 4:20PM 4:15 PM 1:15 PM 4:00 PM 12:30 PM OFF OFF ON OFF OFF Location Residence (On / Off Campus) Figure C.1: Individual Interviews, Set 1 31 Figure C.2: Individual Interviews, Set 2 Interviewer Andrew Bui Brianna Luce Kelsey Peters Anastazia Scott Interviewee Martino Rebecca Chris Ali Major Business Bio-Chem Business Biology University Union (2nd Floor) Starbucks, University Union University Union University Store Date May 7th, 2013 May 11, 2013 May 10, 2013 May 9, 2013 Time 2:15 PM 2:30 PM 4:30 PM 12:50 PM ON ON OFF OFF Location Residence (On / Off Campus) IN-STORE OBSERVATIONS INITIAL TEAM OBSERVATION #1 Brianna: Entrance of the University Store keeping count of the number of people entering the store, male vs. female, solo or in groups. Brianna was a complete observer with identity unknown. Anastazia: Entrance/Cash-Wrap keeping track of who buys what and the number of people that actually purchase products. Anastazia was a complete observer with identity unknown. Matt: Textbooks/Supplies looking to see if anyone is purchasing textbooks and the types of supplies, whether they are Cal Poly brand or other brands. Matt was a complete observer with identity unknown. Kelsey: Center of the store keeping track of people in the apparel/gifts/tech center to see what people are buying or looking at. Kelsey was a complete observer with identity unknown. Andrew: Entrance/Exit keeping track of people entering and leaving the store at a different time of day than the other four group members. Also monitoring the types of merchan- 32 IMPORTANT NOTES FROM OBSERVATION #1 It is important to note that the time of this observation was extremely busy. There was a great deal of middle school, junior high, and high school groups on tours. There were also a lot of adults that were in the bookstore at the time. The student traffic was also very high. We were not able to differentiate student’s class level. We were also surprised to see how many students were purchasing scantrons, via the single serve scantron station, in addition to how many students were purchasing engineering paper. It could be inferred that many students were unprepared for class and needed these supplies immediately. Due to this, we feel like students seek a simpler way to purchase everyday supplies. We were also amazed by the fact that the store sold so many supplies that we were unaware of (i.e. tennis balls, stamps, and karate uniforms). One thing that we did not see as observers was some sort of security system. The following table outlines our observation strategy. Figure C.3: Observation #1 Observer Matt Brandt Brianna Luce Kelsey Peters Anastazia Scott Location University Store University Store University Store University Store Date April 30, 2013 April 30, 2013 April 30, 2013 April 30, 2013 Time 11:15 AM12:15 PM 11:15 AM12:15 PM 11:15 AM12:15 PM 11:15 AM 12:15 PM Spectator vs. Participant Spectator Spectator Spectator Spectator Observation Method Notepad + cell phone (for pictures) Notebook + iPhone (for pictures) Notepad +iPhone (for time and pictures) Notepad + cell phone (for pictures) INITIAL TEAM OBSERVATION #2 As seen above, our first observation of the University Store was extremely crowded so we felt that a second observation was necessary. This observation allowed us to observe the University Store during a time of low foot traffic. The goal of this observation was to collectively find the amount of people coming into the store, how many made a purchase, and what they were purchasing. A large majority of students just used the self-service station for scantrons or bought scantron packets from the back of the store. During this short time it felt that students only came in when they knew what they wanted rather than just shopping around. Our strategy for the second observation period is outlined on the following table. 33 Figure C.4: Observation #2 Observer Matt Brandt Kelsey Peters Anastazia Scott Location University Store University Store Entrance University Store Date May 7, 2013 May 7, 2013 May 7, 2013 Time 1:15 PM1:45 PM 1:15 PM1:45 PM 1:15 PM 1:45 PM Spectator vs. Participant Spectator Participant Spectator Observation Method Notepad + cell phone (for pictures) Notepad + Wallet (to buy t-shirt) Notepad + cell phone (for pictures) DOWNTOWN OBSERVATION Location: Cal Poly Downtown Date: May 2nd, 2012 Time: 7:15 Observers: Brianna Luce and Anastazia Scott Anastazia and Bri anticipated doing an observation at Cal Poly Downtown; however, there was not enough foot traffic. We spoke with an employee who said, “Thursday night is one of our least busy nights. “Baby items are the most popular items.” [In regards to what items are frequently purchased at Cal Poly Downtown]. The observation is outlined in the following table. Observer Brianna Luce Anastazia Scott Location Cal Poly Downtown Cal Poly Downtown Date May 2, 2013 May 2, 2013 Time 7:15 PM 7:15 PM Spectator vs. Participant Spectator Spectator Observation Method Notebook + iPhone (for pictures) Notepad Figure C.5 Downtown Observation 34 Individual Observations #4 Location: University Store Date: May 8th, 2013 Time: 2:05 PM – 2:25 PM Observer: Brianna Luce It is important to note that the University Store was having a sidewalk sale during the time of this observation, and there was a craft sale in the University Union, which increased traffic flow in this area. However, within the University Store itself, there was little foot traffic. The majority of shoppers seemed to be Cal Poly students. My observation led to into my interview, as transcribed below. Location: University Store Date: May 8th, 2013 Time: 2:05 PM – 2:25 PM Observer: Andrew Bui An individual observation consisting of recording customers’ demographics and the types of merchandise purchased was done during the late afternoon to see if there was a noticeably different trend compared to peak hours. Traffic was considerably lower, but overall most customer purchases leaned towards last minute supplies and test materials, with little to no Cal Poly apparel-related purchases. During both of the afternoon observation periods, there was a noticeable increase in the amount of non-purchasing customers who entered the store. The afternoon observations are outlined in Figure C.7 Observer Andrew Bui Brianna Luce Location University Store University Store Date May 7th, 2013 May 8, 2013 Time 4:30 - 5:00 PM (both days) 2:05 PM – 2:25 PM Spectator vs. Participant Spectator Spectator Observation Method Notebook + iPhone (to take pictures) iPhone Figure C.7 Afternoon Observations 35 ETHNOGRAPHIC SYNTHESIS Figure C.8: Ethnographic Evidence in Support of Theme #1 Observer/ Interviewer Observational Evidence Interview Evidence Matt Brandt Overhear male tech employee finally saying to female customer, “I doubt we have that in right now” -They didn’t Umm, I’ll like usually go to like Office Max or Office Depot before the school year and try pick up everything I think I’ll need. Male Jr. high student asks employee in supply section “Is there a candy shop on campus?” To save some money. I figure I’m gonna need the stuff anyways and I can get almost everything I’ll need at one place. THEME 1: PEOPLE WANT A MORE DIVERSE RANGE OF PRODUCTS AND SERVICES FROM THE UNIVERSITY STORE Description The majority of the people that were interviewed mentioned that they would prefer if the University Store provided a more diverse range of products and services. While the products and services asked for were not consistent between all of the interviewees, it was a common theme overall. Some of our interview participants suggested that the University Store implement a loyalty or rewards program in order to encourage customers to shop there and to enhance their experience. Local competitors offer programs like these that give customers the incentive to shop with them. This gives the University Store an opportunity to create a lasting relationship with the customer. Our ethnographic research supporting this theme can be seen in Figure C.8. Relevance The relevance of this theme, as it pertains to our research question, is that it gives us a better understanding of what the University Store could do to better satisfy the customer’s wants and needs. In the past thirty minutes zero customers have walked past Cal Poly historical facts past alumni section. Anastazia Scott “I think that if they want loyal customers, if they’re not going to lower prices on books… they should have some sort of punchcard or something where if you buy a certain amount of books you get a discount on one or something like that, because I have no incentive to go in there regularly.” “Some type of rewards thing going on where if you buy so many shirts you can get a percent off or something.” “A loyalty program would be nice.” 36 “Maybe like Redbox or something like that for freshman and the people that live on campus so they can get movies.” “I don’t have a Mac so it would be nice to have nonApple products... I would like to see some other brands like HP or other tablets, not just the iPad.” Kelsey Peters “Sometimes when you need to go in for only pencils or small supplies, but know that everyone is in there makes it seem not even worth it to wait to buy them. If they had some sort of vending machine off to the side for supplies like that so you didn’t have to wait in a long line.” Brianna Luce When answering what the store could offer, “A loyalty program for the amount of books we have to buy from there. Something like buy all of your books for the quarter in a bundle and receive a tshirt or 10% off.” “It would be nice to pick up a Frisbee, board game, or a movie. Heck if they carried water balloons, I would buy them there, if they are a reasonable price.” Brianna Luce I saw a young male shopper carrying tennis balls out of the store, and I interviewed him. This shows that students purchase a diverse range of products. Andrew Bui Multiple students walked directly towards a specific area to search for something, but left the University Store without a purchase. Interviews him and he says, “I needed tennis balls and rubber bands, and its close and accessible, and I am satisfied.” Figure C.8: Ethnographic Evidence in Support of Theme #1 cont. THEME 2: THE UNIVERSITY STORE IS EXPENSIVE Description We have found the most common response when describing the University Store to be that it is too expensive. We understand that people come from different financial backgrounds and we have tried to account for that by speaking to a diverse range of people, but have found the response to be the same. Many students perceive the store as expensive, but may not see the qualities of the brand name, high-quality materials, and American made products. Our ethnographic research supporting this theme can be seen in Figure C.9. Relevance This is relevant to our research question because it gives us the customer perceptions of the University Store. More specifically, it is a negative aspect of the University Store. 37 Figure C.9: Ethnographic Evidence in Support of Theme #2 Observer/ Interviewer Matt Brandt Observational Evidence Interview Evidence Male wandering apparel flipping through tags/prices appears to be looking for a sales rack or some sort of deal. Pretty much price. Like I said it’s just cheaper to get everything at once when it’s on sale at one of those store and Amazon is just easier. Two females go into textbook section clearly looking for a book and leave thirty seconds later empty handed -price or out of stock? Well I’m just able to like compare the prices online first and Amazon ships free because I have Amazon prime. “You can buy pretty much any textbook online for cheaper” Well they pretty much have all the necessities for me and the other stuff is usually just overpriced. Well, it works pretty well for what it is. I wish the products were more relatively priced and I might actually like consider buying other supplies here too. Anastazia Scott “Look, $2.99 for chapstick, I can get it for $0.99.” “I think their clothes are really expensive, which sucks because I really want to buy them but… I can either get a t-shirt or a textbook, but I need to pass my class so I have to get the textbook.” “[I buy Cal Poly gear] only when it’s that sale day, which is like once a quarter… it’s like best day of the year, you know?” 38 Kelsey Peters “Way too much, 47 dollars?!” When asked to change something about the store, “Ummmmm, the prices!” When looking through fitness wear, “This is so much money.” About buying on Amazon, “It is way cheaper and I can order it right from home.” Looking at a tank top, “27 dollars?! Better be worth it.” When asked to change something about the store, “Definitely how expensive it is and having more sales and to advertise them better since I never know when they’re happening.” “We pay enough tuition as it is so students should get a discount, Cal Poly return the love, they don’t give incentive to go there.” “I would definitely buy more if it was cheaper or if they had a type of rewards program.” Andrew Bui Visiting parents ask their daughter if she is confident she wants that exact sweater due to the price. “[Buying] in store is just too expensive- the used price for the bookstore is far higher than what I can get online, because I buy my used books on Amazon for a lot cheaper.” “I only bought a textbook there when I need to or its the 2nd week of class when I need to do homework... and even the CamelBak water bottles and all that stuff you can find that elsewhere.” “I rented a textbook for $100, and then I found out that my friend rented it on Chegg for $40... I don’t see how there’s a $60 difference between the same book.” “Target or Costco, that have everything in one place, their prices aren't as expensive, so I would go to Target, because they have so many of the same things as the University Store, but they just don't say Cal Poly… so you're buying the brand” 39 THEME 3: CONSISTENCY OF CUSTOMER SERVICE Description: Some students have felt that the employees are not well trained and there is a knowledge gap between the employees and their stock information. The University Store employs many students to help work at the store, but unfortunately, many of them are lacking basic knowledge about product availability and location. Easy to resolve problems like employee’s lack of knowledge and poor customer service can hinder the store’s performance and ability to increase sales. If customers are unable to find the products that they want, then the University Store will have trouble making a profit. Some of the employees can be very helpful; however, conflicting information from different sources can confuse the customer and lead to shopper’s distress. The employees need to have a more complete overview of the entire store, so they can offer the customers more help in guiding them towards a certain product rather than helping them in the search process. Our ethnographic research supporting this theme can be seen in Figure C.10. Relevance: Multiple students reported poor consistency of customer service in the University Store as a problem. This is relevant to our research question because it shows a negative aspect of the University Store as expressed by customers. Figure C.10: Ethnographic Evidence in Support of Theme #3 Observer/ Interviewer Observational Evidence Matt Brandt Male employee comes into supply section trying to help customer locate something. Store not disorganized but employees knowledge of product location lacking. Matt Brandt “I walked around with a salesperson like around the whole floor looking for where it was and they were looking for it with me and I was like I could have walked around this whole store by myself.” Anastazia Scott “Sometimes with textbooks I have this like miscommunication where like I talk with three different employees on three different days and they all tell me different stuff… ‘The book is in the warehouse’, ‘Oh, no we’re not getting that textbook until next year,’ so it was just like no one knew the right answer.” Andrew Bui Very few to no interaction between incoming customers and chatting employees, especially during non-peak hours. Kelsey Peters “With me it seems like sometimes you go in there and the employees are stuck in one section and they only know what is in that section so they will direct you to someone else. With the textbooks they did not know the right information of when books were coming in.” Kelsey Peters “It doesn’t seem like the staff is very trained. I could find things faster without them.” Interview Evidence “I went in to buy ink and I had no idea what kind of printer I had or ink I needed and went in there completely unprepared, but the guy was very helpful in the tech section and helped me get what I needed.” 40 THEME 4: CONVENIENCE OF THE STORE Description: # # # # The University Bookstore’s main advantage in being able to entice students to shop there is its great location. Not only does it possess a large advantage due to it being on campus, its central location on campus also puts it in great proximity to students regardless of their location on campus. However, even with this convenience, students still have a difficult time finding what they are looking for within the University Store. This can be attributed to the layout of the store changing, post renovations. Students also believe that navigating the store for a certain product becomes tedious due to the clutter of extra products that aren’t a necessity to have in stock. Instead of trying to bring so many alternative products to students, the store should focus on its greatest quality, convenience, and offer the essentials at a greater convenience (like the self-serve scantrons, which are now located at the front register). Our ethnographic research supporting this theme can be seen in Figure C.11. Relevance: The convenience of the store is relevant to our research question in multiple ways. First, it is perceived as a positive aspect of the store because it is much easier to quickly grab an item on the go from the University Store than to go off campus. Secondly, the convenience of the store also motivates customers to shop at the University Store when compared to the alternatives. With convenience being a main customer motivation, the University Store is allowed to price their products at a premium with less sensitivity to cost. Through further research we hope to find an exact premium that customers are willing to pay for the convenience aspect of the store. Figure C.11: Ethnographic Evidence in Support of Theme #4 Observer/ Interviewer Matt Brandt Observational Evidence Interview Evidence “You can get to the section, but then it takes awhile to find what you need in that section.” Yeah like the first quarter here I was trying to buy textbooks and I just remember it taking forever. The checkouts were way different then so I think they’ve probably figured that out now. Female customer still at tech center for over fifteen minutes being helped on macbook - Looks annoyed by long wait behind other customer. I guess it’s pretty much in like the center of campus so that makes it pretty easy to get to. Well I’m pretty sure they offer the same stuff here (University Store on campus) and it just seems easier to pick it up and save on shipping. Anastazia Scott “I can actually find stuff. It’s a lot better [after the remodel].” “Doesn’t take that long to find something… most of the time I don’t have to ask anyone if I need to find anything.” “I was already on campus, so it was convenient and I didn’t want to have to make an extra trip anywhere and I needed it today, so... yeah.” 41 It’s convenient but would be nice if there was free parking or 20-minutes or less parking spaces that you could use to run into the bookstore real quick. Kelsey Peters “Everything we need is on campus and very convenient especially for those that don’t have a car.” Where do you normally shop for supplies? “In the bookstore if it is something I need quick or usually Staples, Office Depot.” “I am on campus all day long and the store is so much more convenient than going home to my car and driving to Staples.” Andrew Bui “I like that it is at the center of campus- no matter where you are its always 5 minutes away.” “Textbooks I buy online, and other essentials like pencils and things like that I buy from the bookstore just because it’s convenient.” “I'm in the [University] Union and I can go downstairs and walk to the bookstore… It's fast. When you're on the go it's easier to go on campus to the University Store” Average time of visit for people with purchases during observation was less than 10 minutes “I happened to be downtown at the time for farmer’s market, and I think it [Cal Poly Downtown] is just another fun little location.” Over 75% of purchases during observed times at the University Store consisted of supplies and textbooks 42 APPENDIX D: QUESTIONNAIRE FINDINGS RESEARCH PLAN The purpose of our research plan is to coordinate an efficient and effective questioning sequence and sampling strategy. Ideally our results from the questionnaire will allow us to confirm our findings from our previous findings. The results will also allow us to better understand the current perceptions of The University Store as seen by Cal Poly students, alumni, faculty, and staff. This information will allow us to guide Yukie Nishinaga and the Cal Poly Corporation in identifying the future direction of the University Store, so it will better satisfy the needs of customers. RESEARCH QUESTION What are the positive and negative aspects of the University Store as perceived by customers? What could the University Store do to better satisfy the wants and needs of its customers? SAMPLING STRATEGY Criteria and Characteristics •Includes: students, alumni, faculty, and staff. •Student Sample Size: 86 •Alumni, Faculty, and Staff: 46 •Total responses: 132 Questionnaire Distribution In order to get a diverse group of responses, our team used a multifaceted strategy, which allowed us to gather a lot of data. The initial method of distributing our survey was via the social media site, Facebook. We posted our student version on Facebook pages such as: Cerro Vista Housing, Mustang Band, Business Administration Cal Poly, Sigma Kappa Sorority Page, Alpha Kappa Psi Fraternity Page, and on personal Facebook pages. As a team we used iPads to interview bucks in 43 respondents at Starbucks in the University Union. In order to obtain input of faculty and staff we also used iPads to survey employees in the administration building, and professors via office hours. In order to obtain feedback from alumni, we utilized the Cal Poly Alumni Page on LinkedIn, which allowed us access to a diverse range of alumni. We also had access to a handful of alumni via email, so we simply sent them a brief email accompanied by the survey. We used four mediums to reach respondents: LinkedIn, Facebook, personal email, and in person surveys. QUESTIONNAIRE INSTRUCTIONS TO RESPONDENTS LinkedIn When administering our survey via Linkedin, We identified ourselves as students, and asked if they would take a quick survey regarding the University Store. The initial posting of surveys on Linkedin was on Friday, May 17. The LinkedIn users were thanked for their time, being told that “we would appreciate your help.” No other instructions were given. Facebook When distributing our survey using Facebook, we identified ourselves as students in a marketing class, and asked for students to take a brief 1-2 minute survey, and thanked them for their time. The initial posting of surveys on Facebook was on Friday, May 17. We also posted it on the Sigma Kappa Facebook page on May 19 at 7 pm, and on the Alpha Kappa Psi Facebook group on May 20. No other instructions were given to participants. In Person Questionnaire We did not have any specific instructions for the surveys. On May 20, from 10 am- 11:30 AM we administered our survey to respondents. As a team, we introduced ourselves to potential survey respondents, and explained to them it was a brief 1-2 minute survey about their perceptions of the University Store. We distributed the surveys using team member’s iPads. If respondents were unfamiliar with an iPad, we gave them a brief overview of how to use it. If participants had a question during the survey, we would answer it. Email One of our team members emailed a group of alumni that he was in contact with. He simply informed his network of alumni about the project and survey, and thanked them. No further instructions were given to participants. The Sequence of Questions Our survey began with a screening question asking respondents their affiliation with Cal Poly, the response options for this question include: student, faculty, staff, alumni, and visitor. We did this so the proper participants would take the survey that was geared toward their demographic. We ended the student survey with demographic questions, these questions asked: what year a student was and what college they were in. 44 STUDENT QUESTIONNAIRE This is a survey designed for the Cal Poly family to identify customer's feelings and motivations regarding the University Store: SCREENING QUESTION Purpose: To differentiate between students and others in order to provide them with Analysis: 100% of respondents were students. the correct survey. We offered two different surveys based on their answers given for this question; one that was tailored to Cal Poly students and another that was geared towards alumni, faculty, staff, and visitors. QUESTION 1 Purpose: This frequency question was used in order to get an idea of how often Analysis: The majority (59%) of our respondents claimed that they frequented the students are utilizing the University Store. We wanted to break this down into the number of times they frequented the store per quarter. University Store between three to five times per quarter while 29% reported that they visit the store one to two times. Only 2% stated that they did not make use of the University Store. 45 QUESTION 2 Purpose: We wanted to understand what types of products and services stu- Analysis: Only 33% of our survey takers replied that they purchase textbooks dents were purchasing at the University Store. It is assumed that the majority of students purchase textbooks and supplies, but we wanted to get a better idea of what other items they purchased, and if other items were purchased at all. from the University Store and 35% stated that they purchased supplies. This is most likely due to the availability of competitors that offer these products for much less. Surprisingly, only 25% of our student respondents purchase apparel from the University Store and only 5% take advantage of the tech center. Three percent claimed that they purchased other, which included novels, snacks, Cal Poly branded items, and items from the gift section. QUESTION 3 Purpose: This is a frequency question used to get a better idea of how many Analysis: Seventy-seven percent of student respondents stated that they times student customers visited the online website for the University Store. Yukie mentioned that the website was going to be revamped this summer, so we wanted to see how many of our respondents were already using the online University Store website. never use the website for the University Store. Only 22% of respondents use the website 1-2 times per year. This is most likely a result of how convenient the University Store is for students, it is more effective and efficient for them to walk into the store to purchase an item. Another possible reason for the low traffic of the University Store’s website is because the lack of marketing, and students simply not knowing it exists. 46 QUESTION 4 QUESTION 5 Purpose: This is an information question that we used as a benchmark for the Purpose: We wanted to identify how much students feel is an appropriate price types of clothing stores students are comparing the University Store to. It is based on our previous findings that many customers believed the University Store’s apparel was too expensive, so we wanted to see what types of apparel stores they were comparing prices to. point for a Cal Poly sweatshirt or hoodie. This was specific information that Yukie wanted, she wanted us to benchmark the price of sweatshirts and hoodies. This question allowed us to target a specific price point in which customers are willing to pay for a product. Analysis: Ninety percent of our survey respondents said that they primarily purchased apparel at discount or moderately priced retailers while only a combined 10% shopped at better or designer retail stores. This helps us understand the benchmark that students are using to compare the University Store’s prices for apparel. Analysis: Fifty-two percent of students would pay $20-$30 for a Cal Poly sweatshirt, and 41% would pay $30-$40. This is most likely due to the fact that many college students are on a limited budget, and they value other items more than a Cal Poly branded hoodie. 47 QUESTION 6 Purpose: This is a category question of the survey taker’s intention of increasing their shopping habits. We used this question in order to see if our results lined up with some of the suggestions we encountered from our focus group findings and from individual interviews. Based on the results, we can offer the University Store a recommendation for implementing one or more of the services listed. Analysis: Fifty-four percent of students would be likely to use the University Store more, if they had a loyalty card. This is because many popular stores that students frequent (Starbucks, Best Buy, Costco, and American Eagle) have similar programs already in place that our generation has grown accustomed to. 38% of respondents remained neutral, which could have been caused by a lack of knowledge about the concept of the loyalty program, or are just impartial to the idea. 48 Analysis: Eighty-five percent of students are more likely to shop at the University Store if there were more sales. This is most likely due to the fact that students are on a limited budget, but want Cal Poly branded merchandise. Analysis: The majority of students 69%, stated that better variety of merchandise will increase their shopping habits. This is most likely due to the fact that that the University Store is convenient and would be a one-stop-shop for students if they had more products. Analysis: Fifty-four percent of students stated that they probably or definitely would increase their shopping habits at the University Store if they offered Redbox movie rentals. Twenty-six percent were neutral and 21% said that they probably or definitely would not increase their shopping at the University Store if it offered Redbox. Some of our respondents did not know what Redbox was, so this may have influenced their responses. 49 QUESTION 7 Purpose: After meeting with Yukie, our team noticed that the direction for the Uni- Analysis: The spread of these results revolved around the response that high qual- versity Store was towards offering name brand, high quality, and American made products. We wanted statistical facts that allowed us to understand if students wanted the same direction for the University Store. ity products will affect student’s purchasing decisions. Only 8% of students said that having high quality products would not influence their purchases. Analysis: Most students, 44%, were neutral when it came to the importance of the Analysis: We found that a majority of students, 50%, did not have an opinion about University Store carrying name brands. A mere 6% said that having name brands definitely would influence their purchases and 21% said that it probably would. The other 28% said that it probably or definitely would not influence them. if their products were American made. Although the next closest, 20%, expressed that it does influence their purchasing decision and would more likely buy a product if American made. We chose to ask this question after meeting with Yuki when she mentioned that a part of quality is where the product is made and she wanted to see how this affects student’s purchasing decisions. 50 QUESTION 8 QUESTION 9 Purpose: The overall result of this question is known as the net promoter score, in Purpose: We wanted to understand the first thing that comes to mind for students which a high score is usually correlated with a high rate of growth for an organization. The results of this question for students can serve as a useful indication for the University Store as to how successful they are with their target audience. about the University Store. We then will use these words to create a Tag Cloud. A tag cloud is a visual representation of textual data. The importance of each word is identified by its size and color. Analysis: The most common themes amongst the Tag Cloud was that the UniverAnalysis: After conducting our survey, we found the results to be nearly split. 32% of respondents said they would recommend the University Store to a friend, while 31% said they would not recommend the University Store. The remaining 37% stayed neutral. sity Store was expensive, overpriced, and convenient. This is most likely because students compare the University Store’s products to that of discount retailers like TJ Maxx, Marshalls, and Target, which are priced significantly less than the University Store. Convenient is also a popular theme because it is easily accessible from all parts of campus. 51 QUESTION 10 QUESTION 11 Purpose: This is a demographic question used to see if there is any differentiation in purchasing habits from year to year. We assume that first year students may be asked to complete more projects where the materials can be purchased at the University Store. Also, as students become more independent, their disposable income may decrease making it less likely for them to purchase non-essentials from the University Store. We want to see if there are any trends based on which year students are. Analysis: Since we wanted to get a fair representation of Cal Poly students and see if there were any purchasing trends based on year, the data shows that each year is represented fairly well. Seniors showed the smallest proportion of our responses, with only 12%, but this may be a result of our sampling strategy. Since we posted the links for the survey on Facebook and e-mailed it to people we knew, the low number of senior participants might be due to our group not having many fourth years in our contact list. A comparison can be seen in Figure D.1 Purpose: This is our last demographic question. We wanted to ensure an equal representation amongst all colleges throughout Cal Poly. This is important because each college has specific classes, which require different supplies and textbooks. Analysis: Out of the six colleges, we had a majority (31%) of responses come from the College of Engineering students. Only 7% of our survey takers were from the College of Architecture and Environmental Design. The other four colleges were more fairly represented by our survey sample. A breakdown can be seen in Figure D.2 52 College Our Percentage Cal Poly Fact Book Percentage Agriculture, Food and Environmental Science 15% 20% Architecture and Environmental Design 7% 8.2% Orfalea College of Business 16% 12.5% College of Engineering 31% 29% College of Liberal Arts 14% 14.6% College of Science and Math 16% 15.2% Our Percentage Cal Poly Fact Book Percentage Freshman (1st Year) 35% 20.4% Sophomore (2nd Year) 32% 22.1% Junior (3rd Year) 21% 21.2% Senior (4th Year or more) 12% 36.3% Student Demographics Figure D.2 Figure D.1 NON-STUDENT QUESTIONNAIRE SCREENING QUESTION Analysis: Most of our respondents Purpose: To differentiate between students and others in order to provide them with the correct survey, we offered two different surveys based on their answers given for this question. One that was tailored to Cal Poly students and the other was geared towards alumni, faculty, staff, and visitors. for this survey were alumni, accounting for 82% of responses. We were only able to get a response from one faculty member (2%) and four staff members (9%). Due to some of the surveys being distributed via online social media sites and e-mail, we had 3 students (7% of respondents) accidentally take this survey that was geared towards non-students. Therefore, some of the data may be skewed. 53 QUESTION 1 Purpose: This frequency question was used in order to get an idea of how often Analysis: The majority (60%) of our respondents from the alumni, faculty and members of the staff, faculty and alumni are utilizing the University Store. We wanted to break this down into the number of times they frequented the store per quarter. staff survey claimed that they frequented the University Store zero times in a quarter on average. The other most commonly chosen responses were between one and two times (18%) and three to four times (18%) per quarter. Only 4% of respondents from the faculty, staff, and alumni survey frequent the university store more than six times per quarter. QUESTION 2 Purpose: We wanted to understand what types of products and services mem- Analysis: After reviewing what products the faculty, staff and alumni purchase bers of the faculty, staff and alumni were purchasing at the University Store. most often from the University Store, we discovered nearly half (49%) of the respondents purchased apparel from the store. The next products most commonly purchased were supplies (19%), textbooks (15%), other (15%), and finally tech accessories (3%). Among the other products that respondents listed include, watches, golf supplies, diploma frames, greeting cards, gifts, and technical books. 54 QUESTION 3 Purpose: This is a frequency question used to get a better idea of how many times members of the faculty, staff and alumni visited the online website for the University Store. Yukie mentioned that the website was going to be revamped this summer, so we wanted to see how many of our respondents were already using the online University Store website. Analysis: The majority of respondents (69%) stated that they never use the online website. The only other option chosen by the faculty, staff, and alumni was one to two times per week (31%). QUESTION 4 Purpose: This is an information question that we used as a benchmark for the types of clothing stores the faculty, staff and alumni are comparing the University Store to. It is based on our previous findings that many customers believed the University Store’s apparel was too expensive, so we wanted to see what types of apparel stores they were comparing prices to use as a benchmark. Analysis: After reviewing the staff, faculty and alumni responses, we discovered that over half (52%) shop for apparel at moderate to contemporary stores. The next most cited response for where customers shop for apparel was discount or mass-market retailers (30%). The two options that were chosen least for apparel stores were the better or bridge stores (14%) and designer or haute couture stores (5%). 55 QUESTION 5 Purpose: We wanted to identify the price point at which a member of the faculty, Analysis: Sixty percent of faculty, staff and alumni members would pay $30-$40 staff, or alumni would feel is appropriate for a Cal Poly sweatshirt or hoodie. This was specific information that Yukie wanted; she wanted us to benchmark the price of sweatshirts and hoodies. This question allowed us to target a specific price point in which customers are willing to pay for a product. for a Cal Poly sweatshirt, and 20% stated they would pay $20-$30. However, another 20% of respondents said they would be willing to pay over $40, which is much larger than the student survey, indicating an abundance of cash for alumni, staff and faculty. QUESTION 6 Purpose: This is a category question used to gauge what products or services could potentially increase their shopping habits. We used this question in order to see if our results lined up with some of the suggestions we encountered from our focus group findings and from individual interviews. Based on the results, we can offer the University Store a recommendation for implementing one or more of the services listed. 56 Analysis: Faculty, staff, and alumni seem pretty split on whether a loyalty program would increase their shopping habits at the University Store. Forty percent of the respondents believed a loyalty program would increase their habits, while 31% said it would not. The remaining 29% remained neutral. Analysis: Sales have the potential to increase the shopping habits for over 60% of the respondents, while only 15% believed that sales would not have an impact on their shopping habits. The remaining 24% of respondents decided to remain neutral. Analysis: The most desired option to enhance the shopping habits of faculty, staff and alumni was through offering a better variety of merchandise. 66% of the respondents had a positive reaction to the possibility of the University Store offering a wider variety of products. Only 9% said more variety would not affect their shopping habits. The other 27% decided to remain neutral. Analysis: Redbox is not likely a service that many alumni, faculty, or staff would use, making them impartial to it, which is represented by 45% of respondents. The 7% of respondent who noted that it would definitely increase their shopping would be likely to rent a Redbox DVD after their work day, then return it the next. The 17% that stated that Redbox would not increase their shopping was probably alumni, who did not live near Cal Poly. 57 QUESTION 7 Purpose: After meeting with Yukie, our team noted that the Cal Poly Corporation’s direction for the University Store was towards offering name brand, high quality, and American made products. Therefore, we focused on researching those three marketing components in order to see if those aspects fell in line with the actual desires of the University Store’s customers. Analysis: For faculty, 44% said that there are neutral to name brands when it comes to shopping at the University store. Following behind, 20% said that this probably will affect their decision. Name Brands affect the purchasing decisions of non-students more than students. Analysis: A total of 60% say that having American made products probably or definitely will influence their purchases. With only 11% saying this would not affect them is much less than students responded. Analysis: Thirty-six percent of faculty, staff, and alumni said that having High Quality Products would influence their purchases. An even higher percent of 45 said it would probably influence their decisions. A mere 4% said that it probably or definitely will not influence their purchasing choices. Overall, we wanted to educate the customers on the value they were getting in order to justify the said higher prices. We found that people do want 58 high quality products and care about the products being American made. The only aspect that they seemed indifferent about was their appeal to name brands. During our client briefing, it was stressed that the University Store gives customers an opportunity to purchase high profile name brands, which was denoted as a major selling point. Despite this, analysis of the survey reveals that the University Store demographic is actually overall indifferent to name brands as a base of their purchasing decisions, with 66% of surveyors viewing name brands as either neutral or irrelevant factor. Having American made and high quality products fared better with respondents however, an overall 81% and 61% of respondents noted that high quality and American-made products are a large motivating factor behind purchases at the University Store, respectively. QUESTION 8 Purpose: Similar to the student specific survey, this question is meant to examine non-student affiliated customers of the University Store and see how much they will recommend the store to a friend as a further indicator of the store’s success. Analysis: On a 1 to 5 scale, 1 being “Definitely Will Recommend” and 5 being “Definitely Will not Recommend"40% were neutral on whether or not they would recommend the University Store to a friend. Less than half, 47%, said they would probably or definitely recommend the University Store to a friend. QUESTION 9 Purpose: We wanted to understand the first thing that comes to mind for students about the University Store. We then will use these words to create a Tag Cloud. A tag cloud is a visual representation of textual data. The importance of each word is identified by its size and color. Analysis: This Tag Cloud illustrates that the most common words associated with the University Store by alumni, faculty, and staff revolves around “expensive.” The other most popularly associated words by this demographic with the University Store were “college”, and “students.” 59 APPENDIX E: WORKS CITED Anderson, Erik. "California’s Economic Health Improving, Recession Receding, New Report Says." 6 Nov. 2012. Web. 29 Apr. 2013. Aydin, Ashley. "Brown Daily Herald." Brown Daily Herald. Brown University, 22 Nov. 2010. Web. 10 Apr. 2013. http://www.browndailyherald.com/2010/11/22/purchases-dropping- bookstore battles-online-competition/ Billings, Victoria. "Mustang Daily." Mustang Daily. N.p., 28 Mar. 2012. Web. 9 Apr. 2013. <http://mustangdaily.net/tag/el-corral-bookstore/>. DeVito, David, and Nate Rempe. "Textbook Insights. What Is in Store for the College Bookstore?" Harris Interactive. Harris Interactive, n.d. Web. 9 Apr. 2013. <http://www.nebook.com/images/KIP_whitepaper1.pdf>. "El Corral Bookstore Kicks Off a Renaming Contest." Campus Dining Received 2009 NACUFS "Best in Business" Award of Excellence 03/02/09. Cal Poly Corporation, 3 Mar. 2012. Web. 16 Apr. 2013. <http://www.calpolycorporation.org/media/release032012.asp>. BN College. Barnes and Noble College, 28 Feb. 2011. Web. 14 Apr. 2013. <http://www.bncollege.com/news/campus-bookstores-focus-on-sustainability/>. "Federal Work Study - Employer Information." Federal Work Study. N.p., n.d. Web. 14 Apr. 2013. "California Faculty Association." Governor's Budget Proposal Includes Increas in CSU Funding -. N.p., n.d. Web. 14 Apr. 2013. Friedman, S. (2002, Feb 04). University of missouri-columbia bookstore turns new page. Knight Ridder Tribune Business News. Retrieved from http://ezproxy.lib.calpoly.edu/login?url=http://search.proquest.com/docview/46458293 0?accountid=10362 Cal Poly San Luis Obispo. Cal Poly Alumni Relations. n.d. <http://alumni.calpoly.edu/content/about_cpaa/notable_alumni>. "California Polytechnic State University, San Luis Obispo." Forbes. Forbes Magazine, n.d. Web. 14 Apr. 2013. "Cal Poly Corporation Shakes Up Shopping, Food." Mustang Daily. N.p., 19 Sept. 2012. Web. 10 Apr. 2013. <http://mustangdaily.net/cal-poly-corporation-shakes-up-campus-shopping/>. "CAL POLY SAN LUIS OBISPO - 10 Year Fee History." The California State University. N.p., n.d. Web. 14 Apr. 2013. "Cal Poly Fact Book 2012." Cal Poly Office of Institutional Planning and Analysis. California Polytechnic State University, 2012. Web. 25 May 2013. "Cal Poly State University at San Luis Obispo The Orfalea College of Business." Cal Poly State University at San Luis Obispo The Orfalea College of Business. N.p., n.d. Web. 14 Apr. 2013. "College Students Prefer Print Over Digital Textbooks." PR NewswireMay 25 2010. ProQuest. Web. 15 Apr. 2013 . Gibbons, Timothy J. "E-books Becoming More Popular, but Jacksonville and Other Libraries Feel Stymied by Publishers." Jacksonville.com. N.p., 1 Feb. 2013. Web. 11 Apr. 2013. <http://members.jacksonville.com/news/premium-news/2013-02-01/story/e-books-bec oming-more-popular-jacksonville-and-other-libraries>. Institutional Planning and Analysis. "PolyView." 2012. Institutional Planning and Analysis. 14 April 2013. <http://www.ipa.calpoly.edu/sites/ipa.wcms.calpoly.edu/files/publications_reports/poly view/pv12.pdf>. Ippolito, Elizabeth. Meeting Millennials. 19 June 2012. 13 April 2013. <http://www.matchstickstrategies.com/meeting-millennials-5-characteristics-that-defin e-your-new-customers/>. Keeter, Scott and Paul Taylor. The Millennials. n.d. 13 April 2013. <http://www.pewresearch.org/2009/12/10/the-millennials/>. Mustang Daily. "Mustang Daily." 29 March 2012. Textbook Purchases Bring Difficulties. 14 April 2013. <http://mustangdaily.net/tag/el-corral-bookstore/>. Mustang Daily. Mustang Daily- News for Cal Poly San Luis Obispo, 19 Sept. 2012. Web. 14 Apr. 2013. <http://mustangdaily.net/ 60 Institutional Planning and Analysis. "PolyView." 2012. Institutional Planning and Analysis. 14 April 2013. <http://www.ipa.calpoly.edu/sites/ipa.wcms.calpoly.edu/files/publications_reports/polyvi ew/pv12.pdf>. Ippolito, Elizabeth. Meeting Millennials. 19 June 2012. 13 April 2013. <http://www.matchstickstrategies.com/meeting-millennials-5-characteristics-that-defineyour-new-customers/>. Keeter, Scott and Paul Taylor. The Millennials. n.d. 13 April 2013. <http://www.pewresearch.org/2009/12/10/the-millennials/>. "University Store Homepage - Cal Poly." University Store Homepage - Cal Poly. N.p., n.d. Web. 14 Apr. 2013. <http://www.calpolyuniversitystore.com/#content> "University Store." History of the University Store. Cal Poly Corporation, n.d. Web. 9 Apr. 2013. <http://www.calpolyuniversitystore.com/misc/ecbs/history.aspx>. U.S. Census Bureau. U.S. Census Bureau. 2011. 14 April 2013. <http://quickfacts.census.gov/qfd/states/06/06079.html>. Young, Jeffery R. "As Textbooks Go Digital, Campus Bookstores May Go Bookless." The Chronicle of Higher Education. The Chronicle of Higher Education, 14 Nov. 2010. Web. 11 Apr. 2013. http://chronicle.com/article/As-Textbooks- Go-Digital/125363/ Mustang Daily. "Mustang Daily." 29 March 2012. Textbook Purchases Bring Difficulties. 14 April 2013. <http://mustangdaily.net/tag/el-corral-bookstore/>. Mustang Daily. Mustang Daily- News for Cal Poly San Luis Obispo, 19 Sept. 2012. Web. 14 Apr. 2013. <http://mustangdaily.net/cal-poly-corporation-shakes-up-campus-shopping/>. Natividad, Sara. "Governor’s Budget Gives Money Back to CSU | Mustang Daily - News for Cal Nishinaga, Yukie. "Market Research Project Overview." 2013. 1. Office of Institutional Planning and Analysis. Cal Poly Fall 2011 Fact Book. San Luis Obispo, CA: Office of Institutional Planning and Analysis, 2011. http://www.ipa.calpoly.edu/sites/ipa.wcms.calpoly.edu/files/publications_reports/factbook/fbfa ll11.pdf Poly San Luis Obispo." Governor’s Budget Gives Money Back to CSU | Mustang Daily - News for Cal Poly San Luis Obispo. N.p., 16 Jan. 2013. Web. 14 Apr. 2013. Rempe, Nate and David DeVito. "Textbook Insights." n.d. Nebraska Book Company. 13 April 2013. <http://www.nebook.com/images/KIP_whitepaper1.pdf> Reynolds, Rob, and Yevgeny Ioffe. "Digital Textbook Sales in U.S. Higher Education — A FiveYear Projection." Next Is Now- Evolving Trends in Digital Learning. MBS Direct, 13 Apr. 2010. Web. 19 Apr. 2013. <http://www.nextisnow.net/blog/digital-textbook-sales-in-u-s-higher-education-five-yearprojection.html>. 61