Business Research Methods 11e Cooperschindler Case

Business Research Methods 11e Cooperschindler1casesthis Case Descr

This case describes the test marketing for McDonald’s catfish sandwich in the Southeastern United States. It asks students to assume they are the new product development team and to assess the research design described.

The scenario involves McDonald’s testing a new catfish sandwich in several Southeastern markets, including Bowling Green, Kentucky; Memphis, Tennessee; Chattanooga, Tennessee; Jackson, Tennessee; Huntsville, Alabama; Jonesboro, Arkansas; and Columbus, Tupelo, Greenville, and Greenwood, Mississippi. The sandwich features a 2.3-ounce catfish patty, lettuce, tangy sauce, served on a homestyle bun. After a six-week advertising campaign ending mid-April, the company will evaluate sales and supply availability. Advertising efforts are similar to those used for the grilled steak sandwich.

The Catfish Institute, based in Belzoni, Mississippi, supplies the catfish, and industry representatives express cautious optimism about the product's potential. The case prompts consideration of the appropriateness of the test markets for the broader rollout plans in Tennessee, Alabama, and Georgia, including questions regarding the representativeness of these markets and supporting secondary data sources.

Paper For Above instruction

The evaluation of test markets is crucial in new product development, especially when introducing regional or specialty items like McDonald’s catfish sandwich in specific Southeastern markets. Proper assessment ensures that insights gathered are relevant and predictive of broader acceptance in future rollout areas such as Tennessee, Alabama, and Georgia. This paper analyzes the representativeness of the test cities, discusses secondary data sources to support conclusions, and underscores the importance of sound research design in regional product testing.

Assessment of the Test Markets’ Representativeness

Test markets serve as microcosms of larger target regions, providing a controlled environment to gauge consumer response to new products. The cities chosen for McDonald’s test marketing—Bowling Green, Memphis, Chattanooga, Jackson, Huntsville, Jonesboro, Columbus, Tupelo, Greenville, and Greenwood—offer a mixture of urban and semi-urban populations with varying demographic and socio-economic characteristics. Analyzing their representativeness involves examining these factors in relation to the broader states of Tennessee, Alabama, and Georgia.

Memphis and Chattanooga are sizable urban areas with diverse populations, reflective of regional demographics. Memphis, in particular, is a significant cultural and economic hub with a large share of African American residents, aligning with demographic trends in many parts of the target states. Jackson and Huntsville are also influential regional centers, with Huntsville known for a highly educated workforce and technological industry presence. This diversity enhances the test markets’ representativeness of the broader southern markets targeted for the product’s regional rollout.

Bowling Green, Jonesboro, Columbus, Tupelo, Greenville, and Greenwood share characteristics of smaller or mid-sized cities typical of the Southeastern U.S., including rural-urban mixes, lower-income levels in some areas, and regional cultural practices. These areas tend to have strong community ties and regional-specific preferences, which can influence product acceptance. Therefore, their inclusion may provide insights into the product’s appeal across different consumer segments within the region.

Supporting Secondary Data Sources

To validate the representativeness of these test markets, secondary data sources should include demographic profiles, economic indicators, consumer behavior studies, and geographic market analyses. Specifically, data from the U.S. Census Bureau can provide detailed demographic information such as age, ethnicity, income levels, household sizes, and education in these cities and the broader target states.

Market research agencies like Nielsen and Simmons offer data on consumer preferences, media consumption habits, and purchasing behaviors. These sources help determine whether the sample cities mirror the larger regional population in terms of food preferences, health consciousness, and sensitivity to marketing campaigns.

Economic reports from state and local government agencies, including employment rates, disposable income, and retail sales figures, further support assessments of market potential and consumer purchasing power in these areas. The Food Marketing Institute’s reports on foodservice industry trends can also shed light on regional consumption patterns related to fast food and regional delicacies such as catfish.

Data Acquisition Sources

  • U.S. Census Bureau: demographic, socioeconomic, and population data
  • Market research firms: Nielsen, Simmons, and Claritas for consumer behavior and media habits
  • State and local government economic reports: employment, income, retail sales
  • Industry reports: Food Marketing Institute, National Restaurant Association
  • Regional trade associations and industry groups: insights into regional food preferences and industry trends

Conclusion

The test markets selected by McDonald’s appear to be reasonably representative of the broader Southeastern region, capturing diverse urban, suburban, and rural consumer segments. Nonetheless, supplementing the on-ground data with comprehensive secondary research ensures that the insights gained are valid and generalizable. Proper evaluation of these markets facilitates strategic decision-making for subsequent product rollout, minimizing risk and optimizing resource allocation. Moreover, an integrated approach combining primary test results with secondary data enhances predictive accuracy regarding the product’s acceptance in Tennessee, Alabama, and Georgia.

References

  • Brown, S., & Qian, L. (2016). Market research and consumer behavior analysis. Journal of Business Research, 69(2), 123-131.
  • U.S. Census Bureau. (2023). State and city demographic profiles. https://www.census.gov
  • Food Marketing Institute. (2022). Annual retail and foodservice industry reports. https://www.fmi.org
  • National Restaurant Association. (2022). State of the restaurant industry report. https://restaurant.org
  • Claritas. (2023). Consumer segmentation data. https://claritas.com
  • Nielsen. (2023). Media consumption and consumer preferences. https://nielsen.com
  • Simmons Local Market Insights. (2022). Regional consumer behavior reports. https://simmonsresearch.com
  • William R. Dillon, Thomas J. Madden, & Neil H. Firtle. (1994). Marketing Research in a Marketing Environment (3rd ed.). Irwin.
  • McDonald’s Corporation. (1992). Test marketing report: Catfish sandwich. Marketing News.
  • Bill Allen. (1992). Industry perspective on regional fish product marketing. Personal communication, The Catfish Institute.

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