Market Research

1. Ursule Biongolo, Carlos
Labarga & Kundai Nangati

2. Agenda
• Summary
• Market research approach
• Conduction of study
• Interpretation of results

3. Case Study 5
synopsis
• Summary
• Restaurant business
• Risk and reward

4. Market research
approach
• Problem
• Objective
• Research approach

5. Appropriateness of
study
• Exploratory research
• Qualitative research
• Phenomenological research

6. • Casual, elegant American restaurant that
serves barbecue and steakhouse cuisine
• The average price ranges between $50 and $80
• One of the most celebrated steakhouses in the
world, specializing in fresh seafood and steak
in an authentic American-style ambience
• It has an average of 4 out of 5 stars in food,
4 stars in service, 3.5 stars in value and 4
stars in atmosphere
Smith & Wollensky

7. •Average price of $50 to $80.
•American steakhouse, seafood and
barbecue cuisine.
•Morton´s serves prime-age beef,
succulent seafood, good wines and
cocktails among other items.
•The averages are 4 stars for food, 4.5
stars for service, 3.5 stars for value
and 4 stars for atmosphere
•Morton´s steakhouse has better scores in
Morton´s
Steakhouse

8. •Average price of $50 (less expensive)
•Is a legendary Steakhouse that serves the
finest, US prime-steaks, fresh seafood and
classic desserts with Caribbean elegance
and charm. It is also considered to be a
casual, elegant, American cuisine
steakhouse
•Ruth’s rated, 4.5 stars in food, 4.5 stars
in service, 4 stars in value and 4.5 stars
in atmosphere.
•Ruth’s is the same as Morton´s but
atmosphere
Ruth´s Chris
Steakhouse

9. •This restaurant has the same style of
food, American steakhouse, but with a price
that is around $30 (half of Smith and
Wollensky) costs.
•It is included in casual dining instead
of casual elegant cuisine, and has
different competitors than the original
restaurant.
•It offers platters that can be shared,
steaks, and burgers in a casual atmosphere.
•Average ratings of 4.5 stars in food, 4.5
Wollensky's
Grill

10. •Average price: $15 to $50.
•American steakhouse cuisine,
•The rating of their food is 5 stars, the
service is 4.5 stars, the value is 4.5
stars and the atmosphere is 4.5 stars
•It has better rates than Wollensky´s Grill
by 0.5 stars more in atmosphere and food
and the same for all the rest
K Rico South American
Steakhouse

11. •Average price between $30 and $40
•The style is casual dining and has an
American cuisine similar to Wollensky´s
•The ratings are 4.5 stars in food, 4.5
stars in service, 4 stars in value and
4.5 stars in atmosphere.
•It has the same ratings as Wollensky´s
Grill
The Little
Own

12. • Rating are more similar, 3 of them have
4.5/5 in food, 4.5/5 in service, 4/5 in
value and 4.5/5 in atmosphere
Compariso
n

13. Perks of phenomenological
research
• It is a qualitative research approach with
qualitative input.
• This type of research leads to more work to
analyze raw data but gives more valuable
information.
• A qualitative research can be as reliable than a
quantitative one when the answers are coded.
• Survey coding is the process of linking open-end
questions together and categorize them into
themes.

14. Raw data from the ITW
• ‘‘Wine doesn’t have to expensive to be good’’...
‘‘But I don’t mind paying for something that is
unique’’.
• ‘‘We pay too much for stuff, I want things to be
genuine’’.
• ‘‘I love old neighborhood Italian restaurants.
They’re aren’t always expensive. But they have
character’’.
• ‘‘You know you can buy cheap things and get
cheated too’’ ‘‘Bought a bottle of Louisiana from
Tenesse! What a scam’’.

15. Raw data from the ITW cntd
• ‘‘When I buy something nice, I want it to be
real’’... ‘‘Champagne should be from
Champagne not California. A good glass of
Champagne is worth what you pay’’.
• ‘‘Look at this hotel... when you look at the
price you think this is crazy. But, look at
the attentuon of the details. You have to be
willing to pay more for people that care so
much about what they do’’.
• ‘‘It’s okay for something to be cheap... even
fake. As long as I know it’s cheap’’, ‘‘when
you spend $100 for a bottle you want the real
stuff. But if you spend $10 for a bottle at a
restaurant who cares?’’

16. • Places should only be expensive if there is a
reason to it. It is alright to pay a premium
if it is qualitative.
• Each product/service should be authentic, the
price is not relevant to that.
• Nevertheless, a place or wine does not have
to be expensive to be good. Cheap is welcome
as long as there a quality/price correlation.
Possible themes coded from
the ITW

17. Conclusions of the answers’
analysis
• The sample does not necessarly wants any changes.
• They like simple service & quality which means the
less pricey Grill would be a good idea.
• If David Ortega wants raise prices he has to offer
an upstanding service.
• The most important is that the service offered is
authentic. It has to be true to what David Ortega
is selling.

18. •There are many answers but most of them with
the same message
•People who pay high prices want a quality
product
•High price -> good quality, genuine or
unique to the product
•People do not like to get cheated
•if they pay a premium price, they expect a premium
product,
•Most of them also agree that it worth to pay
Result of the
research

19. •Customers of high-end restaurants are
interested in quality product that make them
feel special or unique
•Even they want to reduce costs to charge
less, they still have to offer good quality
•If they charge high prices for premium
products people will pay happily for their
meals if they get an accordingly quality
service.
•Keep a nice atmosphere
•people are willing to spend extra money to eat in
a restaurant where they can have a good time with
What should David report
back?
Credit to TripAdvisor