Marketing Research: Research Report

- - - Cover page - - Pet Heaven

Luke Butcher
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Contents page:
Q1a) Comment on the extent to which purchase regularity differs across pet owners. Provide your
interpretation of why this may be. ......................................................................................................... 3
Q1b) Comment on the variability of the likelihood of joining the membership club for the 3 types of
pet owners. Provide your interpretation of what could explain the variability observed? ................... 4
Q2 Recommendations) What strategies should Pet Heaven put in place to enhance their social media
following with respect to gender and age? ............................................................................................ 5
Q3a) Compare responses to pet pamperer items 4 and 9 across the two genders measured. Provide
your interpretation of why this could be? .............................................................................................. 6
Q3b) Comment on the extent to which the average purchase history differs across age groups.
Provide your interpretation of why this could be? ................................................................................. 7
Q3c) Determine what factors of Pet Pamperers emerge, and explain their underlying concepts. .... 8
Q4 Recommendations) Using the factor analysis factors discovered and purchase history results to
develop a strategy for Pet Heaven to attract consumers of differing purchase regularity to join their
membership club? .................................................................................................................................. 9
Appendices............................................................................................................................................ 11

List of figures:
Figure 1: Purchase regularity of pet owners ........................................................................................... 3
Figure 2: Membership likelihood for pet owners ................................................................................... 4
Figure 3: Social media sites followed by 55-60 year old females ........................................................... 5
Figure 4: Pet pamperer comparisons across genders* ........................................................................... 6
Figure 5: Purchase history compared across age groups ....................................................................... 7

List of tables:
Table 1: Pet pamperer exploratory factor analysis results* ................................................................... 8
Table 2: Predictors of Club Membership (Weekly) ................................................................................. 9
Table 3: Predictors of Club Membership (Monthly) ............................................................................... 9
Table 4: Predictors of Club Membership (Quarterly) ............................................................................. 9
Table 5: Predictors of Club Membership (Yearly, Or Less) ..................................................................... 9

Q1a) Comment on the extent to which purchase regularity differs across pet owners. Provide your
interpretation of why this may be. Note: these are highlighted for the assessment to draw distinction between
the question and the answer.

Figure 1: Purchase regularity of pet owners

Number of respondents

n = 124

n = 50
n = 34

Note: well labelled axis, data labels, titles, legends, etc.

Note: a stacked column graph is used where the bars are not equal in size and percentages are not shown. This is more
appropriate where group sizes are different, and proportions as percentages may be misleading.

The results exhibited in Figure 1 indicate that generally speaking, pet owners shop at Pet Heaven most
commonly on a weekly basis (Dogs: 40 [32.3%] Cats: 12 [35.3%] Others: 22 [44.0%]), and this is closely followed
by a yearly or less (Dogs: 31 [25.0%] Cats: 10 [29.4%] Others: 12 [24.0%]) shopping regularity. In must be noted
though, that the number of dog owners (n = 124) in the sample far outweighs the others (Cats: n = 34,
Other: n = 50), which could potentially damage the validity of some results.
Note: the first paragraph provides a summary of only the key results and what they mean

These results may be explained by the idea that some owners of pets, particularly dogs, are highly
involved with their pets, and they regularly go out of their way to purchase products for them from
the store. The observed proportions are similar across pet towner types, suggesting no one type of
pet equates to more regular purchase. The products such patrons are buying on a weekly basis are
likely food, treats, or toiletries, which have short life cycles and thus are purchased on a regular basis.
Alternatively, many Pet heaven customers purchase very irregularly. This may represent owners that
dont pamper their pets often as they serve a more practical function; are those who purchase from
other pet stores regularly, only occasionally patronizing Pet Heaven; or finally, those who prefer to
buy in bulk to eliminate regular trips to the store.
Note: the interpretation details why they may have occurred. For this assessment references are not required to
support, however, data references are.
Note: the justified text formatting

Q1b) Comment on the variability of the likelihood of joining the membership club for the 3 types
of pet owners. Provide your interpretation of what could explain the variability observed?
Figure 2: Membership likelihood for pet owners

Note: differing decimals is presented on the data labels. This is a BAD example, consistent decimals should be used.

As is observed in Figure 2, the likelihood of Dog (Mean: 6.65) and Cat (Mean: 6.06) owners to join the
membership club on average is far greater than for the other pet owners category. Measured on a
scale of 1-10, these scores indicate quite high likelihood of joining in the program, and are supported
by the most commonly occurring likelihood for both dog and cat owners being a full score of 10. The
median scores for both these owners is also 7. The nuances of these results suggest that there may
not be a large number of upper-middle to high scores (i.e. 7-10) for both groups, with a lesser number
of low likelihoods of club membership (i.e. 1-5). This is supported by the moderate SDs (Dog: 2.771, Cat:
3.054),

which suggest a moderate spread of scores. The lower mean of cat owners in light of the

identical median and mode suggests a larger number of lower scores, with the higher SD supporting
such a wider variance of scores proportionately.
The results observed may be explained by the range of products and services that Pet Heaven provides
being tailored more towards these animals and the range of breeds, at the expense of other pets such
as krazy krabs, birds, fish, guinea pigs, etc. Because of this, dog and cat owners appear far more likely
to join the membership program. In considering the higher costs associated with both buying and
looking after dogs and cats compared to the others, the benefits of joining the membership program
may also be more appealing to these individuals.

Q2 Recommendations) What strategies should Pet Heaven put in place to enhance their social
media following with respect to gender and age?
In order to develop a set of recommendations in consideration of the variables given, preliminary
analysis is conducted. Pertinently, a frequency analysis of age is conducted with respect to the two
genders. Note: discussion of the process As exhibited in Appendix 3, Note: reference to appendices it is
discovered that a large number of females aged 55-60 years of age exist within the sample
(approximately 20% of the female sample).

Herein, the social media behaviours of these individuals is

examined, with the discovery that 53.8% of respondents follow 1 or less of Pet Heavens social media
sites. This discovery became the basis for the recommendations. Note: use present tense makes your
research appear relevant. Detailed the process conducted.

Figure 3: Social media sites followed by 55-60 year old females

Note: key results drawn attention with the box

In examining this specific segment, it is observed (see figure 3) that 7 of these 13 respondents (in the
gender age segment) follow at one Pet Heaven social media. This is not surprising considering the slower

diffusion of social media into older generations. However, as this age segment is well represented in
the females observed, it does suggest that there is great opportunity to encourage stronger social
media engagement through a plurality of followings. To achieve such and enhance the involvement
with the brand in this segment, a content marketing campaign directed towards females in this age
bracket through pay-per click search engine advertising on Google and Bing is proposed. This content
will comprise five 1 minute videos of Australian female celebrities within the age demographic sharing
poignant stories of how much their pets mean to them and how they enrich their lives. Reflecting the
data results, 2 will feature cat owners, 2 dog owners, and 1 another pet owner. The videos will be
hosted on the Facebook and Youtube accounts of Pet Heaven. A promotional competition where the
segment is encouraged to tag an empty nester in the content will be executed simultaneously. An
example of such a tactic can be found in Appendix 4.
Note: recommendations are things they can do in the future, not why the results may have occurred. These need to be
linked to the industry and the data results observed.

Q3a) Compare responses to pet pamperer items 4 and 9 across the two genders measured.
Provide your interpretation of why this could be?
Figure 4: Pet pamperer comparisons across genders*

PP_4: I treat my pet(s)

like they are my children

Note: figure is
missing a legend
to indicate which
bars correspond
with which gender

PP_9: My pet(s) is my
best friend

Mean
*PP_4 t = .689, p > .05, PP_9 t = -.970, p > .05; males: n = 91, females: n = 117
Note: the footnote revealing only the pertinent statistical info and sample sizes

In examining the two pet pamperer items across the two genders, no statistical difference is observed
for either item (see footnote). Whilst males did indicate stronger agreement that they treat their pets
like their children (males: mean = 5.09, females: mean = 4.87) Note, I make the data reference smaller as it is not the
focus and should not disrupt the reader from the argument you are making, is there as a specific and supporting reference.
In a simple graph / table this might seem overkill, but when they are complex or numerous, it is very important. and

females indicate stronger agreement that their pet(s) are their best friends (males: mean = 3.93, females:
mean = 4.12),

statistically speaking, both genders indicate equivalent agreement. It is worth noting

however, that for PP_4, there was a stronger overall agreement, which was moderately positive,
whilst for PP_9, this was generally quite a neutral response.
The results indicate that both genders are inclined to pamper their pets equally (with respect to the
variables analysed). This may be likely because pets are appealing to all humans, and not necessarily
to one gender. Unlike products that might be developed and designed to suit specific gender
identities, pets are loved by all. Particular breeds or species may be preferred by a gender, but the
concept of a pet is a universal love. The moderately positive agreement that Pet Heaven customers
(equally males and females) do treat their pets like family members may be a result of a longing for
companionship and friendship; someone to have around and to love, like one would a family member.
However, the agreement that pets are their best friends is not supported. Perhaps because they serve
a role more as a family member than an acquaintance, as a pet is in our lives all the time, and someone
we must care for constantly, not just enjoy the company of on occasion.

Q3b) Comment on the extent to which the average purchase history differs across age groups.
Provide your interpretation of why this could be?
Figure 5: Purchase history compared across age groups

*F = .686, p > .05

Note: the y axis is relative to the scale of measurement, and does not mislead the differences between groups

In separating the sample into 4 age groups, a quartile split was undertaken so that each group was as
similar as possible in size, with the age groups of 18-29, 30-47, 48-57, and 58+ emerging. The
difference in average purchase history across the four age groups was not statistically significantly
different. Furthermore, results of the between-groups test (exhibited in the Multiple Comparisons
table of Appendix 6) further indicate no statistical difference between any two groups. Such results
overwhelmingly indicate that age has no influence on the number of purchases customers of Pet
Heaven had made in the last two years.
Such results are somewhat surprising, and may be explained by the notion that people from all ages
purchase products for pets in a similar manner. This may be a result of the product lines that the store
offers, where products appeal to a wide range of pet types and uses. This may suggest Pet Heaven
caters to a quite diverse market and does not tailor its products / services to a particular niche pet
type or need which could correspond with a particular age demographic. In addition, as this variable
(Purchase History) only examines the total number of purchase times, not regularity or size, (Note: it
doesnt hurt to acknowledge limitations of what the results reveal) no comment can be made on such patterns.

Q3c) Determine what factors of Pet Pamperers emerge, and explain their underlying concepts.
Table 1: Pet pamperer exploratory factor analysis results*

*Factor loadings < .300 supressed.

I could go all day without thinking about my pet(s) is reverse coded, hence the inverse association
Note: the clear distinction visually between factors, item names, and entitling

The results of the factor analysis are encouraging as they indicate the emergence of three distinct
factors. The Spare Resources factor suggests Pet Heaven customers are prepared to put their money
and resources towards looking after their pets. This is distinct from No-one Else however, which
suggests a time resource being allocated to pets, perhaps in absence of others to share. Time and
resources may be distinct, as in the increasingly time-poor world we live in, people may be able to
offer their pets love, but only in small doses of time. Herein, such individuals may make up for their
lack of time they can offer their pets with other resources or indulgences such as pet day care, sitters,
walkers, toys, etc.; hence the distinct nature of the two factors. Finally, the third factor Love For Pet
suggests owners have a really strong cognitive and emotional involvement with their pets. The
ubiquity of pet pictures and stories on social media may explain why some pets are always on the
minds of their owners, alternatively, some of Pet Heavens customers may just be pet fanatics. The
results observed suggests that this is distinct from giving lots of resources or time to ones pets, and
exists as a unique phenomenon.

Q4 Recommendations) Using the factor analysis factors discovered and purchase history results to
develop a strategy for Pet Heaven to attract consumers of differing purchase regularity to join
their membership club?
Table 2: Predictors of Club Membership (Weekly)

Table 3: Predictors of Club Membership (Monthly)

Table 4: Predictors of Club Membership (Quarterly)

Table 5: Predictors of Club Membership (Yearly, Or Less)

Note: each group has its own table. This ensures more clear communication.

In examining the results observed in Tables 25, it is clear that purchase history is a direct and strong
influencer of club membership for most purchase regularity consumers (Weekly: Std. (the Greek symbol
for Beta) = .487, p < .000; Quarterly: Std. = .649, p < .000; Yearly Or Less: Std. = .328, p < .05).

It must be noted

however, that for Monthly buyers from Pet Heaven this is slightly non-significant (Monthly: Std. = .366,
p = .052).

Intriguingly, the extent to which Weekly consumers represent the Spare Resources factor is

also statistically significant (Std. = -.257, p < .05), but in a negative direction.
The purchase history results are likely explained by the idea that as consumers purchase more from a
store, they are likely to trust, depend, and prefer that store. This stronger connection would likely
associate with a stronger desire to become a member of a loyalty program. Caring for pets is an
emotional and often expensive task, thus those who purchase a lot from Pet Heaven are likely to
identity the benefits club membership can provide, and be more inclined to want to join. With respect
to the weekly consumers inverse influence of the Spare Resources factor on club membership
likelihood, this may be explained that as the Spare Resources construct increases for those who

purchase weekly from Pet Heaven, they are not more likely to join the club because they purchase
smaller or inexpensive products and do not see the value in club membership, either financially or
with respect to brand attachment. These consumers appear to be relatively wealthy, thus perhaps
they intend to associate with more high-end pet brands, not Pet Heaven. Note: I have provided an
interpretation of regression results here, and will follow with recommendations.

With regards to recommendations, the results observed suggest that to increase membership, the
best strategy will be encouraging purchase, and that this appeals to consumers no matter how
regularly they purchase. It is recommended that Pet Heaven put in place strategies such as price
matching competitors, price-driven sales promotions, and line discounts to encourage more
purchases. Examples can be observed at Appendix 10. For the unique weekly consumers discussed, as
individuals are prepared to put more resources to their pets, they are not more likely to become a
club member. Herein, it is recommended that stocking product lines or offering services that are more
premium or exclusive to pet pampering may encourage them to perceive the brand as more highend and be more inclined to want to become a Pet Heaven club member. Examples of such tactics
can be observed at Appendix 11.
Note: additional info that may distract is put in the appendices section, with references made to it in the body of the
report.

Appendices
Appendix 1:

Q1b)

Q2) Recommendations

Appendix 2:

Appendix 3:

Appendix 4:

Appendix 5:

Appendix 6:

Appendix 7:

Appendix 8:

Appendix 9:
Model Summarya
Model
1

R Square

.557b

Adjusted R

Std. Error of the

Square

Estimate

.310

.270

2.440

a. 13358433_1 = WEEKLY, 2 = MONTHLY, 3 = QUARTERLY, 4 =

YEARLY (OR LESS) = 1

Model Summarya
Model
1

R Square

.379b

.143

Adjusted R

Std. Error of the

Square

Estimate
.029

3.041

a. 13358433_1 = WEEKLY, 2 = MONTHLY, 3 = QUARTERLY, 4 =

YEARLY (OR LESS) = 2

Model Summarya
Model
1

R Square

.644b

Adjusted R

Std. Error of the

Square

Estimate

.415

.358

2.280

a. 13358433_1 = WEEKLY, 2 = MONTHLY, 3 = QUARTERLY, 4 =

YEARLY (OR LESS) = 3

Model Summarya
Model
1

R
.345b

R Square
.119

Adjusted R

Std. Error of the

Square

Estimate
.045

2.764

a. 13358433_1 = WEEKLY, 2 = MONTHLY, 3 = QUARTERLY, 4 =

YEARLY (OR LESS) = 4

Appendix 10:

Appendix 11: