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Tell-A-Marketer Adam Caldwell, Chilistina Monroe, Alex Sayles, Emily Schoos and Jacob Stilin.

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Presentation on theme: "Tell-A-Marketer Adam Caldwell, Chilistina Monroe, Alex Sayles, Emily Schoos and Jacob Stilin."— Presentation transcript:

1 Tell-A-Marketer Adam Caldwell, Chilistina Monroe, Alex Sayles, Emily Schoos and Jacob Stilin

2 Music Streaming Industry History
•The music streaming industry is one that is very young in the grand scheme of things; it's only been around since the turn of the century.  •According to Business insider, "the estimated retail revenues from recorded music rose 17% in the first half of 2017, with revenue from music streaming sites accounting for 62% of the total market". 

3 History of Spotify Spotify: Music for Everyone
Free music streaming services with various add ons Over 75 million users around the globe Founded in 2006 in Stockholm, Sweden Created by Daniel Ek and Martin Lorentzon

4 Intro/background Pricing Tiers
Free, premium, family, and student (which comes with a hefty discount) Using this hybrid streaming model allows the company to continue to attract new users via its ad based free streaming tier, while receiving revenue from its over 1,000,000 subscribers. 

5 Managerial Decision Problem
Problem Statements: How can we turn infrequent users of Spotify to regular users? How can we convince UWM students to use Spotify Premium?

6 Main Research Objectives
Convert non-paying users to paid users The majority of this company's revenue is generated by their subscriber base, so it is important to broaden that base. 

7 Questions including segmentation and construct definitions
Infrequent users: Users that use the free version of Spotify in addition to other streaming services. Regular users: Users that use Spotify Premium or use Spotify as their primary streaming service. Non-consumers:  Do not use Spotify at all or use other streaming services. 

8 Data collection Qualtrics- 115 responses
UWM Students that use music streaming services Surveys distributed via and social media

9 Data summary UWM Students Majority female juniors and seniors
Questions regarding price, breadth of music in Spotify’s catalogue and Spotify’s video streaming service were used for statistical analysis Some responses were failed to meet criteria and were unusable for analysis

10 Data analysis 1. What is the size of the three segments in the population? Nonuser- 27 (31%), Infrequent User- 14 (16%), Regular User (53%)

11 Data Analysis 2 In terms of the profile of the three segments,​
2.1. Are they different in terms of gender distribution?​ Yes, fairly significantly considering the small population. Even the regular users have almost a 15% difference in distribution by gender​ 2.2. Are they different in terms of class distribution?​ Respondents were mostly upperclassmen, possibly due to sample error

12 Data analysis 3. In terms of the factors that consumers take into account when making purchase decisions, 3.1. How important are these factors to those three segments? Do they value the importance of the factors differently? Note: price not included in this analysis due to error in survey construction Statistical analysis: One Way ANOVA No significant difference exists between the three segments in terms of either variety or video streaming Conclusion: All three segments care about these factors about the same

13 Data Analysis 3.2. How do frequent and infrequent consumers rate the brand’s performance in terms of those factors? Are they different? They rate music variety very highly (which is good when compared to what they look for in a streaming service). They rate video streaming closer to moderate and poor- which doesn't impact their usage too much On a 1-5 scale, 1= Extremely important, 5= not important at all Non user was 27, infrequent user was 14 and frequent user was 47 Statistical analysis: one way ANOVA A significant difference exists among the segments in terms of music variety Conclusion: Regular users like Spotify's music variety more than infrequent and non-users do

14 Data analysis 4. How do frequent and infrequent consumers perceive the quality and value for cost of the brand? Are they different?     Statistical analysis: Independent samples t-test Perceived Quality Index No significant difference exists between regular and infrequent users feelings in terms of Perceived Quality Index Conclusion: Regular and infrequent users feel about the same about the quality of Spotify Perceived Value for Cost A significant difference exists between how regular and infrequent users feel in terms of Perceived Value for Cost Conclusion: Regular users have a higher perceived value for cost than infrequent users

15 Data analysis 5. Compare perceived quality and perceived value for cost of your brand, Statistical analysis: Paired Samples t-test A significant difference exists between customers' perceived quality and perceived value of Spotify. Conclusion: Consumers perceive the value for cost as being significantly higher than quality of Spotify.

16 Conclusion Respondents were mostly female upperclassmen at UWM
Regular users rate the variety of Spotify’s music selection higher than infrequent and nonusers All three segments care about price, video streaming and variety the same amount Regular and infrequent users feel about the same about the quality of Spotify Regular users have a higher perceived value for cost than infrequent users None of this can really be concluded due to low sample size and use of convenience sampling as well as other sampling and non-sampling errors

17 Recommendation Broaden Artist Base
Exclusive streaming rights with various artists  Find and exploit talents from sources like YouTube and SoundCloud Priority album release Stream music videos

18 Critique Critique Format questions differently Bigger sample size
Longer sample time Stay more involved with brand 27 missing responses for relevant information Conclusions Accurate for college age groups Not applicable to entire population

19 Q&A


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