Hispanics have become an influential and desirable market due to their populatio

Question

Hispanics have become an influential and desirable market due to their population growth rate and their purchasing power potential. The estimated purchasing power of Hispanics this year was estimated at $704 billion. This purchasing power represents substantial opportunity for marketers, especially for those depending on sales growth.

Corporations are changing their sales and distribution strategies in order to specifically target this market segment. According to the Direct Marketing Association (DMA), the paper catalog is still the largest revenue generator; 50% of sales among all channels used by companies that sell goods to consumers and businesses from a remote location.               

L.L. Bean has been a traditional catalog/online seller among the U.S. general market. They now seek to extend their market by penetrating the Hispanic sub-segment. DMA research suggests there is a consistent growth in the Hispanic market segment. However, reaching the Hispanic market segment has its challenges. L.L. Bean needs to decide whether to send their catalog to Hispanic households in English or Spanish. Therefore, they need to determine Hispanic consumers’ language preferences when shopping at a distance, (via mail, telemarketing, catalog, online) in an effort to improve direct selling specially catered for the Hispanic market segment. To address this issue, L.L. Bean hired a marketing research company to provide the information needed to make the decision.

In order to describe the language preferences of Hispanics a sample of 400 Hispanic consumers was randomly selected from a phone data bank; surveys were conducted by telephone in English or Spanish according to the respondents’ preferences. The researchers included following variable in the survey: Catalog Language Preference (1 = English, 2 = Spanish).1

1This case was prepared for class discussion purposes only. The problem scenario is hypothetical.

Follow Up Questions

Which of the following statements describes the decision facing L.L. Bean?

Determine if Hispanic households prefer catalogs in English

Increase their market share by penetrating the Hispanic sub-segment

Improve the direct selling experience among Hispanics

Decide if they should send their catalog to Hispanic households in English or Spanish

6.67 points   

QUESTION 2

Which of the following is a complete research objective for the research conducted for L.L. Bean?

Determine if consumers prefer catalogs in Spanish

Determine the average number of consumers that prefer English

Determine the percent of Hispanic consumers that prefer to read catalogs in Spanish with a dual choice (English/Spanish) response scale

Determine the average number of consumers that are likely to buy from an L.L. Bean Catalog

6.67 points   

QUESTION 3

Which of the following hypotheses can be tested with the data that was collected?

The average number of consumers that prefer catalogs in Spanish is large

b.)The average number of consumers that prefer catalogs in English is large

c.)The percent of Hispanics that are likely to buy from an L.L. Bean Catalog is higher than 30%

The percent of Hispanics that prefer to read catalogs in Spanish is equal or higher than 30%

6.67 points   

QUESTION 4

Which type of research design/s did the research company use to describe the language preferences among bilingual Hispanics?

A.Exploratory

Descriptive

Causal

a and b

6.67 points   

QUESTION 5

A The sample that was collected was?

Non-representative of the whole population.

Convenient

Probabilistic

Non-probabilistic

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QUESTION 6

The research method employed was ___________ in nature.

Qualitative

Quantitative

Secondary

a and b

6.67 points   

QUESTION 7

The researchers included the following question in the survey:

QA) What language do you prefer in the following contexts?
Select the number that best represents your answer.

Refer to QA. What type of response format was employed for each context?

Likert

Dual-choice

Multiple choice

Semantic Differential

6.67 points   

QUESTION 8

Refer to QA. The response scale employed in question QA is?

Categorical

Metric

Aided

None of the above

6.67 points   

QUESTION 9

After the data were collected the researchers summarized the sample data. Below are two data tables from the survey results.

Refer to QB and QC. What is the central tendency for those likely to open the catalog written in Spanish?

10% - Very likely

25% - Somewhat likely

45% - Not very likely

15% - not at all likely

6.67 points   

QUESTION 10

Refer to QB and QC. Based the data tables from QB and QC of the survey, which of the following would be true?

In order for LL Bean to increase likelihood of Hispanic household to open its catalog, LL Bean should…

Produce and mail catalogs written in Spanish to Hispanic households

Produce and mail catalogs written in English to Hispanic households

Produce and mail some catalogs written in Spanish and some written in English to Hispanic households

None of the above

6.67 points   

QUESTION 11

The researchers conducted a hypothesis test to determine the percent of Hispanic households that prefer to browse a catalog in Spanish. They tested the following hypotheses: Ho: greater than or equal to 30%. The calculated Z score is 3.68. With 95% confidence the researcher should conclude that the hypothesis __________ supported and thus should __________ the hypothesis.

is; accept

is, reject

is not; accept

is not, reject

6.67 points   

QUESTION 12

Below is another data table from the survey results.

Refer to QD. The response scale employed in question QD is?

Categorical

Metric

Aided

None of the above

6.67 points   

QUESTION 13

Refer to QD. What is the variability of this question?

1.3 to 2.7

2.7 to 4

1.3 to 4

1 to 4

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QUESTION 14

Refer to QD. What is the central tendency of this question?

1

1.3

2.7

4

6.67 points   

QUESTION 15

Refer to QD. Assuming a 95% confidence level, the confidence interval for this question is ___ , ___.

1.3, 2.7

2.5-2.9

2.6, 2.8

2.9, 4.0

A

Determine if Hispanic households prefer catalogs in English

b

Increase their market share by penetrating the Hispanic sub-segment

c

Improve the direct selling experience among Hispanics

d

Decide if they should send their catalog to Hispanic households in English or Spanish

Explanation / Answer

1. c. Improve the direct selling experience among Hispanics

2. c. Determine the percent of Hispanic consumers that prefer to read catalogs in Spanish with a dual choice (English/Spanish) response scale

3. b. The average number of consumers that prefer catalogs in English is large

4. c. Causal

5. b. Convinient

6. c. Secondary

7.

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