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

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

3. Introduction/Motivation

4. “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

5. Research Design

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

7. Secondary Data

8. Secondary Data Sources Universal McCann and AOL Report on Smartphone usage

9. Secondary Data Sources iPhone Mobile Web consumption exceeds other devices

10. Secondary Data Sources

12. 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%

13. Focus Group Design & Results

14. 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

15. 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

16. Survey Design

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

18. Survey Questionnaire http://www.zoomerang.com/Survey/?p=WEB229VD547PEU

19. 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

20. Survey Results/Analysis

21. 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

22. H2: App Feature Importance

23. H2: Likelihood of more store visit Featuresstore locatormenuCouponorder in advance Mean for all samples1.582.111.742.35 Likely to shop more at CaribouNoYesNoYesNoYesNoYes mean1.541.591.542.312.091.622.912.16 p value0.430.0360.0460.028

24. H3: Loyal vs. non-loyal

25. H4: Application Usage

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

27. 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

28. 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

29. Recommendations

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

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

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

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

34. Questions?