Jenny Hong Jiang, Joseph Nayquonabe, Nicole Newville, Palka Sharma, Ning Yu

Agenda Introduction/Motivation Research Design Secondary Data Focus Group Design & Results Survey Design Survey Results/Analysis Recommendations Questions

Introduction/Motivation

“There’s an Ap for that!” Caribou’s current Smartphone experience Competition in the Smartphone space Decisions that need to be made Research Objectives to assist decision making

Research Design

Exploratory Research – Primarily Secondary Research Qualitative Research – Focus Group Quantitative Research – Survey

Secondary Data

Secondary Data Sources Universal McCann and AOL Report on Smartphone usage

Secondary Data Sources iPhone Mobile Web consumption exceeds other devices

Secondary Data Sources

Insight Express: Mobile Research on Research Mobile Phone penetration Internet penetration Gen Y (18-24) 85%87% Gen X (25-44) 82%83% Younger Boomers (45-54) 80%65% Older Boomers (55-64) 79%65%

Focus Group Design & Results

Focus Group Purpose: Smartphone usage Consumer preferences for a Caribou Coffee application Size: 5 respondents Criterion: Currently use a Smartphone and are familiar with application downloads Platforms 3 iPhone 1 Palm Pre1 Google

Focus Group Results Multiple application downloads: FREE Spend maximum time using the internet Learn about apps via friends or ads Convenience of using mobile web, from 2-5 hours a day Caribou Coffee specifics: location, store hours, order via phone, review menu items, pay in advance, incentives/ deals

Survey Design

Survey Electronic survey via – Time constraints – Perceived greater response due to easier accessibility – Easier to interpret results Sampling procedure – ed to 65 friends/ co-workers → 82% response rate – CONVENIENCE Sampling NOTE: It is assumed that the sample is representative of the entire population

Survey Questionnaire

Survey Questionnaire Challenges: Non responders: 18% - But we had 53 respondents in four days Pre-test survey if time permitted Assumption of sample size representative of population – Preferences and attitudes limited to local population

Survey Results/Analysis

H1: Mobile Web vs. App Very Easy = 2 Easy = 1 Neither Easy Nor Difficult = 0 Difficult = -1 Very Difficult = -2 P = 0.032P = 0.13P = 0.044

H2: App Feature Importance

H2: Likelihood of more store visit Featuresstore locatormenuCouponorder in advance Mean for all samples Likely to shop more at CaribouNoYesNoYesNoYesNoYes mean p value

H3: Loyal vs. non-loyal

H4: Application Usage

Results indicate iPhone users download more applications than other Smartphone users Average applications installed on iPhone compared to other Smartphone handsets

H5: Ordering via Mobile Test reveals that owning an iPhone handset does not make a person more likely to order coffee using their mobile phone

H6: Increase in Caribou Frequency Results indicate a statistical relationship between people who would use the order feature and an increase in their shopping frequency

Recommendations

Recommendation Two Phases Approach 1.Phase I – Standalone iPhone Based Application 2.Phase II - Standalone Android Based Application

Recommendation – Phase I Supporting Platform – iPhone Format – Standalone Application

Recommendation – Phase I Major Features 1.Store Locator 2.Order in Advance 3.Mobile Coupons 4.Online Menu

Recommendation – Phase II Supporting Platform – Android Format – Standalone Application

Questions?