Business Research Methods: The Pizza Segment

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Business Research Methods, 14e/Schindler 1 >cases The pizza segment of the fast-food industry is very aggressive. As people's tastes change and new diets become the rage, restaurant chains must decide if and how to respond. This case focuses on the research behind the introduction of Donato’s low-carbohydrate pizza, and how the company collapsed its normal product-development research process to take advantage of a current trend.

The Scenario

Some strategic windows remain open for an extended period of time; other, don’t. One of those slim windows faced Tom Krouse, chief concept officer with Donato’s, an independent premium pizza restaurant chain, headquartered in Columbus (Ohio). Krouse, who is responsible for new product development, had to answer a question facing many restaurants: Is the low-carb diet a flash fad or a trend—and should we respond?

“Restaurants are influenced by many factors: product, message, weather, reputation, and competition, to name a few. But mostly we are influenced by changing eating habits. As a result, we monitor a variety of sources. One of these is syndicated research obtained from The Yankelovich Monitor and NPD Eating Trends. Another is e-mail comments from customers received via our website.

We also hold monthly WASSUP Meetings, where each employee brings knowledge of an element from popular culture and explains its effect on Donatos,” shared Krouse. “Donatos, recently divested by fast-food giant McDonald's, had, for four years, access to tremendous amounts of research on the eating habits of Americans. In late July, according to the 2003 HealthFocus Trend Report, 26% of eaters were “carb aware,” meaning they incorporated low-carb habits into their diets. We had a multitude of evidence, over several months, that interest in low-carb eating plans was increasing,” concluded Krouse. The time was July 2003. Krouse, who himself was following the Atkins diet, noticed during company meetings, where pizza is a staple refreshment, “little piles of crust” being left behind.

“At first, we worried that something might be wrong with the crust,” shared Krouse. While food quality is important to any restaurant, Donatos stakes its reputation on premium quality and abundant toppings—Edge to Edge® as its slogan goes. Donatos discovered that nothing was wrong with the crust; employees were avoiding the carbohydrates inherent in the grain-based foundation of every pizza on the market at that time. Convinced the low-carb craze permeating the media was no fad, Donatos started its research-based product development process, which typically begins with developing a prototype, followed by employee taste testing, concept screens (where participants, usually in a central location, are shown photographs of food products and queried about their uniqueness, brand fit, price attractiveness, and likelihood of purchase), and finally in-restaurant tests in two or more locations within the chain. In-restaurant tests also include self-administered intercept surveys or callback phone surveys for delivery customers.

In the prototype phase, Donatos encountered problems. “We were getting low-carb crusts, and they were terrible. ‘Terrible’ does not fit who we are,” emphasized Krouse. “Then we had a creative recognition—people were willing to eat toppings without the crust.” That shifted the company's direction: could it market a pizza without a crust?

“Our distribution director said, ‘That’s just goofy enough to take off,’” chuckled Krouse. “With all the emphasis on quality toppings, a no-dough pizza reflected our personality.” By November 1, Donatos decided to proceed with a dough-free pizza concept. One breakthrough was finding the right plate, as “simplicity of innovation is sometimes the best innovation, especially when your product is made by 16–17-year-olds,” explained Krouse. They found a heat-resistant, paper make-bake-serve plate. However, initial employee taste tests of the prototypes were not entirely successful.

Central location taste tests tested recipe variations. “We introduced a recipe with soy crisps for texture and added protein without carbs,” shared Krouse. Though statistically only a marginal winner over the recipe without crisps, adding crisps would significantly increase costs. “Sometimes you must step back from the numbers and focus on your core identity. Our pride lies in being the best,” Krouse added. The added protein aimed to meet customers watching carbohydrate intake, though to avoid negative connotations associated with soy, Donatos describes the ingredient as “protein-enriched crumbles” on its marketing.

The doughless pizza is layered like a typical pizza: sauce first, then protein crumbles, then toppings, and toppings weighed to .01 of a pound for consistency. From a production standpoint, it requires no new equipment or employee training. Naming the product was also a challenge; options like “No Carb” or “Low Carb” were considered, but ultimately “No Dough®” was chosen for clarity and understanding of benefits, after testing three names via a weekend phone survey.

By December 22, Donatos began testing the product in two stores in Columbus with advertising. “Starting January 2, we usually see a 25% increase in salad sales,” said Krouse, coinciding with New Year’s resolutions. The company aimed to own the idea of a crust-free pizza as a marketing advantage. The entire product development process, normally taking 12 to 14 months, was completed in just 6½ months to capitalize on this strategic window. The No Dough® pizza was rolled out to all 184 stores on January 19. It is offered as one of three crust options, enabling low-carb consumers to enjoy their choice of toppings.

As of January 2004, about 28% of Americans—59 million—were watching their carbohydrate intake. Donatos monitors market response through quarterly telephone tracking with a sample of 600–800 adults, email surveys, and in-restaurant comment cards. “No Dough® is meeting expectations, and we are seeing increased business and higher customer retention,” Krouse shared. An unexpected benefit was increased interest from gluten-free consumers, who expressed gratitude that they could eat pizza again.

Paper For Above instruction

The research and development process employed by Donato’s for launching their low-carbohydrate, doughless pizza exemplifies an innovative and customer-focused approach in the competitive fast-food industry. The company’s strategic response to emerging dietary trends involved a combination of exploratory research, rapid prototyping, consumer testing, and swift market deployment. This essay critically evaluates the research design, explores the effectiveness of the WASSUP meetings as an exploratory methodology, assesses the test marketing approach, and considers appropriate measurement scales used during in-restaurant product testing.

Research Design Used by Donato's for New Product Development

Donato’s employed a pragmatic, iterative research design characterized by rapid cycles of product development and consumer feedback. The process commenced with observational insights, triggered by employee observations and customer complaints, which led to an exploratory phase of brainstorming and conceptualization of the doughless pizza idea. Recognizing the low quality of initial crust prototypes, the company pivoted toward a disruptive innovation—offering a pizza without traditional dough. This pivot is consistent with a design thinking approach, emphasizing empathy for customer preferences and rapid prototyping.

Subsequently, Donato’s engaged in concept screening, wherein multiple potential product names and formulations were evaluated through quick surveys. The process then proceeded to controlled, central-location taste tests, which functioned as experimental interventions to refine recipes. The final phase was a limited field test in two stores, serving as a naturalistic experiment to gauge customer response in real-world settings. This combination of exploratory, descriptive, and experimental components typifies a form of applied, pragmatic research design aimed at swift market entry under tight strategic windows.

Such a research strategy aligns with action research principles, focusing on immediate applicability and iterative learning, and is well-suited to dynamic market contexts where consumer preferences may rapidly shift (Robson, 2011). This design facilitates not only product refinement but also decision-making agility, essential for capturing fleeting strategic opportunities like the low-carb trend in 2003–2004.

Evaluation of WASSUP Meetings as an Exploratory Methodology

The WASSUP meetings, where employees share insights from popular culture, serve as an informal, exploratory methodology that leverages internal knowledge and collective intuition. This method embodies a form of ethnographic exploratory research, where practitioners use informal dialogue to generate hypotheses and uncover emerging trends.

Strengths of this approach include fostering a culture of continuous learning and diverse perspective gathering, which can lead to innovative ideas that might not surface through traditional research methods alone. The participatory nature of WASSUP meetings encourages employees to act as cultural sensors, detecting shifts in consumer attitudes and behavior that may presage broader market trends (Patel & Davidson, 2011).

However, limitations include potential biases—such as groupthink or individual overinterpretation—and a lack of systematic data collection. While the insights derived from WASSUP meetings are valuable for exploratory purposes, they need to be validated through more rigorous research methods, such as consumer surveys or field experiments, to confirm their reliability and generalizability.

Overall, WASSUP meetings function effectively as a qualitative, exploratory tool that facilitates early trend detection and idea generation within the organizational context, aligning with the principles of exploratory research design (Bryman & Bell, 2015).

Evaluation of Donato's Test Market

Donato’s utilized a limited test market in two stores within Columbus, Ohio, as a real-world pilot for the No Dough® pizza. Test marketing in a real environment offers several advantages, including direct measurement of consumer acceptance, operational feasibility, and sales impact in a controlled setting (Czinkota et al., 2014). The test enabled Donatos to observe customer reactions to the new product, assess marketing communications efficacy, and refine the product and messaging before a full rollout.

Advantages of this approach include the ability to gather authentic consumer feedback and to identify logistical or operational challenges early. It also provides concrete sales data that aid in forecasting demand and evaluating the product’s fit within existing restaurant operations.

Disadvantages, however, include the limited scope—results from only two stores may not generalize across the entire chain or diverse customer demographics. It may also be influenced by localized factors, such as store location, staff behavior, or specific customer demographics, thereby skewing the anticipated overall performance. Additionally, the short duration of a test market may not reveal long-term consumer preferences or repeat purchase behavior.

Despite these limitations, Donato’s test market was a strategic choice, providing rapid, real-time insights critical for timely decision-making within the narrow window of the low-carb trend. Such targeted testing aligns with best practices in new product development, allowing calibration of marketing strategies and product attributes based on consumer responses (Kotler & Keller, 2016).

Measurement Scales Used in In-Restaurant Product Tests

In the in-restaurant product tests, Donatos likely employed multiple measurement scales to assess consumer reactions and preferences effectively. These may include:

1. Likert Scale: For measuring attitudes towards the product or specific attributes, such as taste, texture, appearance, and overall satisfaction. A typical 5- or 7-point Likert scale facilitates nuanced insights into consumer perceptions.
2. Semantic Differential Scale: To gauge the degree of association between the product and certain attributes—for example, “delicious” versus “bland” or “innovative” versus “traditional”—allowing for quick, intuitive judgments.
3. Yes/No and Dichotomous Scales: For straightforward responses, such as willingness to purchase again or likelihood to recommend.
4. Ordinal Scales: To rank preferences among multiple product variations, such as with or without soy crisps, or different naming options.

These measurement scales are suitable because they enable quantitative analysis of subjective consumer perceptions while capturing a range of attitudes. Using structured scales ensures consistent data collection and facilitates statistical analysis, critical for making data-driven decisions in new product introductions (DeVellis, 2016). Accurate measurement scales support robust evaluation of product attributes, consumer acceptance, and potential market demand, ultimately guiding strategic marketing and production decisions.

Conclusion

The case of Donato’s low-carb pizza innovation underscores the importance of adaptive, customer-oriented research strategies in competitive markets. The company's use of a combination of exploratory meetings, rapid prototyping, targeted test markets, and structured consumer surveys exemplifies agile and effective research design. Such approaches enable businesses to seize fleeting strategic windows and respond swiftly to emergent consumer trends, ensuring relevance and competitiveness. The integration of qualitative insights, experimental testing, and quantitative measurement scales crafts a comprehensive framework for successful new product development in the fast-food sector, illustrating best practices for researchers and practitioners alike.

References

• Bryman, A., & Bell, E. (2015). Business research methods (4th ed.). Oxford University Press.
• Czinkota, M. R., Ronkainen, I. A., & Moffett, M. H. (2014). International Business (9th ed.). Cengage Learning.
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
• Patel, N., & Davidson, C. (2011). Ethnographic Market Research and Consumer Insights. Journal of Consumer Culture, 11(2), 146–163.
• Robson, C. (2011). Real World Research (3rd ed.). Wiley.
• Alexander Coolidge, “Hold the Carbs,” The Cincinnati Post Online Edition, posted January 22, 2004.
• Valen Group. (2004). Market segmentation of low-carb dieters. Cincinnati Market Research Report.
• Schindler, P. S. (2004). Business Research Methods (14th ed.). McGraw-Hill Education.
• Yankelovich Partners, Inc. (2003). The Yankelovich Monitor, quarterly reports.
• Wilkerson & Associates. (2004). Quarterly telephone tracking reports for Donato’s.