disguised market research report

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About the Company

Deyor Rooms is a budget hotel chain, ensuring customer satisfaction by providing consistenthigh quality hotel experience throughout the customers stay. For Deyor, the experience of a

hotel stay starts right from the search for a hotel to painless check-ins, a pleasant stay

experience and finally to a happy “e shall definitely come back! check-out. "pread across

## cities pan $ndia, Deyor rooms provides a globally benchmarked quality of rooms to all its

guests thus ensuring a safe and happy experience.

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Executive Summary

The findings of the disguised market research yielded some actionable insights which in

combination with the competitive benchmarking laid the basis for formulating

recommendations at the later stage of this report. Some of the key insights were:

Key Actionable Insights

• %aximum respondents &'()* listed Room D+cor as their rimary motivation factor

hile selecting a room for stay

• ariff turned out to be the most important "econdary motivation factor ith about

/0) of the respondents selecting it

• 1 significant correlation beteen Room D+cor and 1menities as observed as many

participants displayed them as complimentary primary motivation factors. ariff and

2ocation sho a complementary relationship as primary and secondary motivation

factors.

• 1lthough both genders display similar trends hile choosing among alternatives it

as found that males focussed on Room D+cor and 2ocation here as females eremore interested in 1menities and Room D+cor. Females also happened to be more

tariff sensitive than males

• here as a gradual decline in the importance of ariff and 2ocation as a motivation

factor ith increasing age. 1menities and Room D+cor become governing factors for

choosing a hotel for higher age groups.

3n the basis of the research findings, the consumer can be divided into # segments based on

their behaviour4

1. Quality oriented customers:

hese are those customers ho focus on quality of the 5otel hile choosing a place of

accommodation. hey are ready to pay a premium and traverse greater distance from city

centres to get the best of amenities, room service and d+cor. hese customers generally stay

for shorter durations and consume up their resources during this period. 1bout /6) of the

participants in the survey shoed this type of behaviour. 1nother important observation

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ould be that this type of consumer behaviour as primarily displayed by older age

groupings.

2. Quantity oriented customers:

hese are those customers ho are price sensitive and prioriti7e convenience of location.

heir ma8or goal is to economi7e the entire trip cost &i.e. total accommodation cost as ell as

travelling costs*. 1bout /#) of the participants displayed this type of behaviour. 1bout /9)

&an overall (:)* of these customers can be deemed to be extremely price sensitive in nature.

1 significant section of these customers display a greater affinity to multiple visits in regular

intervals. his behaviour as generally found amongst the younger age groupings.

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Table of Contents

;xecutive "ummary...................................................................................................................ii

R;21;D R;AD"......................................................................................E

;51@$3>R12 ";=%;A1$3A..................................................................................(9

Recommendations....................................................................................................................((

1nnexure..................................................................................................................................(#

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Table of Figures

Figure 1 Table Layout..............................................................................................2

Figure 2 Sample form for ata collection...............................................................!

Figure ! Age "ise brea#$up.....................................................................................%

Figure % &ener "ise brea# up...............................................................................%

Figure ' &ener (ivision in various age groupings )all ata in percentages*......'

Figure + ,verall -esponse for the ar#et -esearch.............................................'

Figure / 0rimary otivation Factors......................................................................+

Figure Seconary otivation Factors................................................................../

Figure 3rea#$up of otivation Factors................................................................/

Figure 14 ,verlap bet"een motivation factors......................................................Figure 11 otivation Factors for ales.................................................................

Figure 12 otivation Factors for Females..............................................................

Figure 1! otivation factors5 Age &roup "ise.......................................................

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-esearch ,b6ective

1ny person travelling either for pleasure or business or even on a 8ust-for-the-eekend trip

looks first and foremost for a place to stay. ut, hile deciding, there are many criteria that

could be looked upon. hile a business traveller could be looking for a hotel ith convenient

location, a family on vacation ould ant good amenities and proximity to tourist spots

hereas on the other hand a group of college students on a eekend trip ould look at the

tariff before booking. ith this thought in mind, Deyor puts forth the ob8ective of this market

research as4

hat is the prevalent factor hile selecting a hotel

• ariff

• 2ocation &roximity to tourist and shopping spots, airport, railay station, etc.*

• 1menities

• Room d+cor

he team as required to target different segments of the society, age groups and various

orking classes for the market research to identify the room selection behaviour of an

individual and provide a statistical interpretation of the data.

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-esearch ethoology

he method chosen for the market research as a modified version of the game of hoopla.

he research as done in a disguised mode &i.e. participants ere unaare of the parameters*

and various parameters for evaluation ere assigned to different positions on the board.

GAME SETUPhere ere / kinds of options given to a customer hile choosing a product. $t included a

combination of ( and # chocolates ith or ithout rapping. hus total of / combinations

ere generated4

(* "ingle product ithout rapping

#* Double product ithout rapping

'* "ingle roduct ith rapping

/* Double product ith rapping

o ros ere setup to place the products. ;ach product as places in a front and a back

ro. 1ppropriate costs ere given to each product in a fashion stated in figure (.

he location signifies convenience of reaching a product, points represents the tariff a

customer is ready to pay, and rapping signifies d+cor i.e. if a customer goes ith a simple

product or if heGshe prefers to go for a nicely presented product.

GAME PLA (* ;ach player as given maximum of (9 points to use during the game in hich heGshe had

to thro the ring in hisGher preferred choice

#* ;ach choice had a different cost and location. For every choice stated points ere

deducted from his account and rest of the points could be used to play for next choice.

'* For subsequent turn player as asked to choose a different preference.

Figure 1 Table Layout

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Legen5

s: "ingle product ithout rapping

sw: "ingle roduct ith rapping

d: Double product ithout rapping

dw: Double product ith rapping

Sample form for ata collection

Figure 2 Sample form for data collection

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Pa!tici"ant P!o#leo ensure success of the research it as ensured that diversity among the participants as

taken. 1n age cut-off of (/ years as maintained hile conducting the research. 3bservationshich ere belo this limit ere discarded for all calculations and analysis. he maximum

age of a participant as C' years. articipants ould be categori7ed into various age

grouping in order to act as segments relevant to industry. he age groupings and gender

division of participants are shon in Figures ' H /.

1$%1&' 1()

1*%2$' 2+)

25%,1' 25)

,2%$0' 25)

$0-' +)

Pa!tici"ant P!o#le. Age G!ou"s

Figure 3 Age wise break-up

Male' +5)

/emale' ,5)

Pa!tici"ant P!o#le. Gene!

Figure 4 Gender wise break up

hile it as possible to get data for a ide range of age groups during the market research,

the gender division as only ('4: in favour of males. Aone the less a substantial mixture

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relevant to the current market could be generated. he gender division in each age group is

given in Figure 0. $t can be seen that the gender division is consistent throughout all age

groups.

1$%1& 1*%2$ 25%,1 ,2%$0 $0-

++2 +4

/2+/

!2! %4

2 !! Male

/emale

Figure 5 Gender Division in various age groupings (all data in percentages)

AnalysisE3ALL 3ESP4SEFrom the data collected it could be observed that maximum participants displayed 2ocation

&about '#)* as their motivational factor hile choosing an option. his as folloed by

ariff )* and 1menities /)*. Figure C gives a break-up of the overall response

collected during the research.

Ta!i Location Amenities 3oom 67co! 4

'

14

1'

24

2'

!4

!'

Pe!centage

Figure 6 Overall esponse !or t"e #arket esearc"

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During the research almost all of the participants shoed a propensity for using multiple

motivation factors to evaluate choices. "ome of these factors had a ma8or influence on

decision making hereas other had limited bearing on choices. 5ence, the motivation factors

ere categori7ed into to types4

(. rimary %otivation Factors

#. "econdary %otivation Factors

Details of these factors are given in subsequent sections.

P3IMA3 MTIATI4 /A8T3Srimary motivation factors are defined by the research team as those motivation factors

hich are used by customers to choose suitable offerings from a set of disparate ones. $t is

primarily used to narro don the list of possible alternatives to ones hich satisfy similar

needs. For example, if ariff is the rimary %otivation Factor for a certain consumer then all

hotels hich are outside hisGher specified budget range are automatically eliminated. From

the research conducted the break-up of rimary %otivation Factors are given in Figure :.

12)

2()

2()

,1)

P!ima!y Moti9ation /acto!s

Ta!i

Location

Amenities

3oom 67co!

Figure $ %ri&ar' #otivation Factors

$t can be observed that Room D+cor hich happened to have the least number of overall

responses &about #9)* as found out to be the rimary %otivation Factor for the ma8ority of

the participants &'()*. $n contrast ariff happens to be the loest on the list hich indicates

that consumer tend to look quality and value for money hile making choices.

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SE846A3 MTIATI4 /A8T3S"econdary motivation factors are those motivational factors hich influence consumers hile

choosing beteen similar offerings. hese come into play after a consumer has used the

rimary %otivation Factor to eliminate undesirable alternatives. For example, once a ariff

sensitive customer has identified lo priced stay options, he may use location as a factor to

7ero in on a preferred choice. herefore, 2ocation acts as the secondary motivation factor.

he break-up for these factors displayed during the research is given in Figure 6.

$+)

,$)

1+) 5)

Secona!y Moti9ation /acto!s

Ta!i Location

Amenities

3oom 67co!

Figure econdar' #otivation Factors

ariff &/0)* and 2ocation &'/)* ere the ma8or secondary factors displayed by people. his

indicates that consumers are either price sensitive or location sensitive at a sub-conscious

level.

:3EAK%UP / P3IMA3 A46 SE846A3 /A8T3S I4

E3ALL 3ESP4SEFigure E shos the break-up of rimary and "econdary motivation factors. $t indicates the

propensity of participants to display a certain factor as a primary or secondary factor. ariff

as found to be primarily used as a "econdary %otivation Factor hereas 1menities and

Room D+cor ere found to be rimary %otivation Factors. 2ocation as displayed as both.

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Ta!i Location Amenities 3oom 67co!

&2

$$

2&

14

2*

5+

&,

(0

Secona!y P!ima!y

All #gu!es in Pe!centages

Figure * +reak-up o! #otivation Factors

Reading Figure E4 :#) of the respondents ho displayed tariff as a motivation factor during

the research displayed it as a secondary motivation factor.

E3LAP :ET;EE4 MTIATI4 /A8T3S%otivation Factors cannot be analysed in isolation. his is primarily because they tend to

overlap ith each other. 1lmost all of the participants displayed the use of a secondary

motivation factor hile a substantial chunk &/6.0)* displayed the use of multiple primary

motivation factors. his trend as consistent in both genders &09) of males and /C) for

females* as ell as all ma8or age groupings. Figure (9 shos the overlap beteen various

factors.

Figure , Overlap between &otivation !actors

$t as observed that there as a great correlation beteen Room D+cor and 1menities as

many participants displayed them as complimentary primary motivation factors. ariff and

2ocation sho a complementary relationship as primary and secondary motivation factors.

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Segmentation%ost of the participants in the research ere residents of urban areas, mostly in and around

=urgaon. 3nly those participants ho ere above the age of (/ ere considered as a part of

the research. oth Demographic and ehavioural segmentation of the participants as done.

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,1)

25)

2()

1$) Am enities

Location

3oom 67co!

Ta!i

Figure ,. #otivation Factors !or Fe&ales

AGE G3UP 3ELATE6 T3E46SFigure (' shos the motivation factors for various age groups. $t can be observed from the

graph that the needs of different age groups vary significantly from each other.

1%$1/ 1$2% 2'$!1 !2$%4 %47

4

14

24

!4

%4

'4

Moti9ation /acto!s. Age G!ou"s

Amenities

Location

3oom 67co!

Ta!i In Pe!ceentage Points

Figure ,3 #otivation !actors/ Age Group wise

he (/-(: age grouping considers 2ocation &about /#)* the most important factor hile

booking a room for stay. 3ther groups like those beteen (6-#/ and #0-'( display a bit more

complex behaviour hile making a decision. hey use various combinations to cater to their

requirements. he /9I age groupingJs focus is solely on 1menities and Room D+cor &a

combines E()*. 3ne important observation is that gradual decline of ariff and 2ocation as a

motivation factor ith increasing age. "imilarly 1menities and Room D+cor become

governing factors for choosing a hotel as age increases.

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-ecommenations3n the basis of the above mentioned insights the folloing recommendations ere made4

• "eparate branding of facilities can be done to differentiate beteen products for both sets

of identified customers or at least separate category of offerings must be created under a

single brand umbrella.

• "econdary motivation factors and their respective synergies ith primary ones should be

studied further. $mproving on these factors ill help in differentiating the DeyorJs

offerings from a competitor ith similar offerings.

• 1 customer specific incentive program must be started. Repeat purchases ought to be

rearded ith extra bonus offer like price discounts for Kuantity oriented customers and

amenity bonuses for Kuality oriented customers

• 1dvertisements and promotions can be made age specific to attract the target customers

in an efficient ay. For example, facilities ith better d+cor and amenities ought to be

made to attract the relatively older segment of audience.

• he frequency of customer visits and duration of stay are important parameters hich can

be used to predict consumer behaviour in a more accurate manner.

•

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Annexure

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disguised market research report

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