Research Design Formulation
A research design is a framework that helps to conduct the research in a step by step procedure and use an underlying theme as the context of research (Kardum et al. 2017). In this case the research design used is based on an exploratory theme that helps in investigating and hence finding out the results of the primary research conducted using a sample in this case (Meyers, Gamst and Guarino, 2016). The research design used here includes purposive sampling techniques as it uses data based on the research question concerned with determining to what extent the target group of customers are ready to pay or are willing to pay for the new type and set of bicycles that the company – The Hero Cycle wants to manufacture and then sell. The exploratory research design along with its essential components is explained in details as follows:
Objective
The objective of this research is to find out the amount that the target clients residing in India are ready to pay for the new rang of bicycles that the firm is going to launch based on the results and findings of this research (Sekaran and Bougie, 2016).
Time:
This research is essentially being carried out at a stage when the manufacturing is being started, that is, when the firm is trying to carry out an extensive market research so that they can gain an insight or have an idea about the estimated amount of sales or revenue generation that they are going to have.
Method:
The method being used in this case is that of a primary survey based on questionnaires which will effectively and essentially be followed by a pilot survey where the estimations from the primary survey will be checked by application of the pilot survey (Nardi, 2018). This will help the firm to first gain an idea and then with the help of the pilot survey gain a deeper insight into the scenario existing in the target market.
Sample and Question:
A small sample consisting of around eleven people who have undertaken the survey and answered the concerned questions is being used in this case for drawing conclusions and gaining insight in order to address the research questions.
The kind of questions asked in this case are close ended questions which provide both the firm and the sample being interviewed with answers so that the conclusions drawn are not too diverse or the sample are able to answer and show their choices and preferences easily and briefly.
Remarks:
The findings and results of the research are not conclusive and are just a representation of what could be the reaction of the general mass for which the product is being designed and manufactured. The research being carried out will only help the firm to gain an approximate and estimated result to the research question and not a conclusion which is binding in terms of practicality, that is, any strong and rigid conclusions cannot be drawn out of the same.
Fieldwork and Data Collection:
The fieldwork or data collection method used here in as mentioned earlier is a questionnaire that has been circulated among the potential target group of clients or customers. The responses of the potential customers to the questions in the survey questionnaire are recorded, analyzed and evaluated. Data collected is on the basis of purposive sampling wherein a cohort of eleven people who answered the questions forms the entire sample (Etikan, Musa and Alkassim, 2016). Thus the data is collected through primary means and the extensive analysis of the data collected is presented in the subsequent parts of this study.
Data Preparation and Analysis:
Data preparation and analysis refers to the process in which the data collected is gathered, combined, structured, analyzed and also organized so that the data can easily be interpreted and the results or insights can be drawn from it in an easier manner (Rattenbury et al. 2017). It might then be used again for further visualization, machine learning and other applications. In this case the type of data preparation and presentation method used for analysis of the data collected involves the use and implementation of graphs and charts which help in portraying the responses and analyzing them in such a way so that these can be interpreted in the form of answers to the research questions (Krosnick, 2018).
The analysis of the data collected from the sampling techniques mentioned above are described and explored in details as follows:
The above figure consists of a graph that helps in answering the question as to which type of cycles does the target group of customers forming a part of the sample use. This helps in forming an idea about the type of bicycles that the firm should effectively be producing, which is the features which should be incorporated in forming a product that will appeal to a greater section of the market. It can be noticed from the above pie-chart that 45% of the sample prefers bicycles without gear, 18% of the sample prefer bicycles with gear, 18% of the population only prefer electric bicycles and again 18% of the sample do not use any kind of bicycles. This data clearly portrays that majority of the sample and hence n all probability the population prefer bicycles that are without any gear and only 18% prefer bicycles which are electric. This clearly portrays that the firm needs to lower the cost of the bicycle to the level of the price that is presently being charged for bicycles without gear. This will not only help ensure that 45% of the population will comfortably be able to afford the bicycles but the entire population will only be able to afford the electric bicycles. However, if the price is kept a little above the price of the bicycles without the gears, the firm will be able to capture most of the target customers if not all.
The next question that is being analyzed is the one of the most important question that helps in answering the question of pricing in a very direct manner and attempt. From the above presentation of the data which is in the form of bar graphs, the range within which the product should be priced can be understood and depicted. It is observed in the above figure that more than 60% of the sample is comfortable with a pricing that ranges in between $300 and $400, around 10% of the population prefer a pricing of around $400 to $500, almost 20% of the sample prefers a pricing of the range of $500 to $600 and again around 10% of the sample would prefer a pricing which is above the range of $600. Thus, it can be asserted with the help of the above analysis that the company should use a pricing strategy that will help in keeping the prices that will help in catering to the prices of the 60% sample and also to the 20% of the sample, to obtain maximization of sales and revenue generation. Thus, the company should specialize the product into two groups such that the group of bicycle with reduced number of features fall in the range of $300 to $400 and another group of bicycles with a higher number of features and customization which cost between $500 to $600 so that both the sections of the target customers are able to buy this new product according to their needs of enhanced features.
The above figure represents a pie chart again that helps in answering the question as to what is the purpose for which the target customers are using the bicycles of this firm or even in general. It is seen in the above chart that around 90% of the sample being questioned use the bicycles for casual purposes and only 9% of the sample use the bicycles for their particular work or needs rather than using them for casual purposes. This helps the firm in deciding the price that the customers will be ready to pay for causal uses depending on the range of prices discussed above.
The above figure which is represented in the form of bar graphs, shows how the average distance for which the bicycles are used. In this case, more than 45% of the sample use bicycles only for a distance in the range of 1km to 4km, around 365 of the population uses the bicycles for a distance of around 5km to 9km and around 18% of the sample uses the bicycles for travelling across distances which are more than 10km. This itself reflects that the pricing of the electric bicycles should be of the range that is reasonable for travelling only short distances in the range of 1km to 9km and not more, that is the pricing should be such that it is feasible for the clients to buy and use the vehicle only for short or moderate distances.
The last figure effectively provides an estimated cost that the firm has used to determine whether the prices of the new range of bicycles should be above 50,000 rupees or not. Here this amount is used as a benchmark such that more than 63% of the sample agrees and around 38% of the sample disagrees to buy the product at that price. So the firm should effectively keep prices lower so that the entire sample agrees to buy the product at that price.
References:
Etikan, I., Musa, S.A. and Alkassim, R.S., 2016. Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), pp.1-4.
Kardum, N., Konic Ristic, A., Zec, M., Kojadinovic, M., Petrovic-Oggiano, G., Zekovic, M., Kroon, P.A. and Glibeti?, M., 2017. Design, formulation and sensory evaluation of a polyphenol-rich food placebo: an example of aronia juice for food intervention studies. International journal of food sciences and nutrition, 68(6), pp.742-749.
Krosnick, J.A., 2018. Questionnaire design. In The Palgrave Handbook of Survey Research (pp. 439-455). Palgrave Macmillan, Cham.
Meyers, L.S., Gamst, G. and Guarino, A.J., 2016. Applied multivariate research: Design and interpretation. Sage publications.
Nardi, P.M., 2018. Doing survey research: A guide to quantitative methods. Routledge.
Rattenbury, T., Hellerstein, J.M., Heer, J., Kandel, S. and Carreras, C., 2017. Principles of Data Wrangling: Practical Techniques for Data Preparation.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach. John Wiley & Sons.
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