Used Textbook Trade ServiceMarketing Research Report

Babson College MKT 7510

Marketing Research & Analysis

Yi Lin Hiroo NishiKeren-Or ReissAmir Samakar

Purchasing textbook is …

Expensive

Time consuming

The Solution – TextMark: Used Textbook for Cash

TextMa

rk

USEDTEXTBOOK

Discount Price

Marketing Research Objectives

1.) Current Customer Purchasing Behavior2.) Is there really a need?

Step 1: EXPLORATORY RESEARCH

- Survey with 25 ‘closed’ questions

Step 2: REVISION

Step 3: ACTUAL SAMPLING

-Online 36 questions-SPSS used for detailed analysis.

* http://www.university-directory.org/massachusetts_university.html** First want to control the public (70%) vs. private (30%)** 95% confident level with +/- 5% tolerance for market potential

Sampling

DESIGNED ACTUAL

Elements in-school students (the same)

Extent US (the same)

Time 2012 (the same)

Frame US Univ. Directory* N/A

Technique Non-probability sampling Quota sampling**

Non-probability sampling Convenience sampling + Snowball sampling

Sample Size 385*** 103

Data CollectionDESIGNED ACTUAL

Method Fieldwork + Online Online

Target 70% public school; 30% private

No requirement

Tools • Social Media• E-mail• Phone call

• Social Media (Facebook, current city feature)

• E-mail• Phone call

Reach out • Classmates• Friends• Fieldwork respondents

• Classmates• Friends

Demographic Analysis

National Center for Education Statistics (NCES) published in 2011

Private college Students

Gradate Students

Full-time students

Female students

International students

0% 20% 40% 60% 80% 100%

Sample Population*

Sampling Error Correction

?

Dependant Variable Type?

T-test

Crosstabs

Mann-Whitne

y

Nominal

Scale

Ordinal

?

Case #1

Mean

WeightedAverage

SignificantCategories?

Case#2

Mean

Yes

No

End

Respondent Error Correction

RecodeTotal1

RecodeTotal2

How many books you buy? (seller)

case

compute sum

How many books you buy ? (method of purchase)

60% of rows were

used.

Use Row

Discard row

Equal

Not equal

Total1 =Tortal2 ?

Students & Textbooks

ebook25%

new book25%

buy used book36%

rent used book14%

Purchase Preference

New book 29%

Buy used37%

rent used book18%

borrow12%

ebook4%

Purchase Behavior

Market Share Analysis

Available Demand

Available Supply Result

buy used book 19% 9% 9%rent used book 9% 13% 9%

Max. PotentialMarket Share 18%

Product/Service Mix Analysis

• Sensitive to price when purchasing textbooks• Sensitive to delivery time (within 2 days)• Sensitive to the quality of the used textbooks

Sensitivity Analysis

• No significant difference from different group of demographic character

• Including enrollment level, program nature, gender, school nature, & citizenship

Segment Analysis

• No correlation between product mix and demographics• except the elder the students, the more concern about the

quality of the used textbooks.

Correlation Analysis

Conclusions

• maximum market share of this business is 18%.

Market Potential

• Price• Delivery Time• Quality of used textbooks

Customers are Sensitive to

The behavior of textbooks purchase is not depended on: Gender Grad/Ugrad Public/private (college)

Conclusions - Continue

Segmentation

75% of students

prefer textbooks to

ebooks

55% of students

purchase used or rent books.

New editions are issued

every 4 years

Other Highlights

There is a market for TextMark.

Venture Opportunity

Thank You

Q & A

Appendix A Distribution of Collegese

Appendix B - Majors

Appendix CExploratory Research Results

NEW: 12 interview results in hand!!

I. Condition- 69% do not mind having memos.- 83% prefer to buy used books.- 70% of the asked students prefer to buy books.

II. Price- AVG $365/ semester- 61% do not compare prices- 42% Buy older version

III. Location- 69% at book store vs. 46% at amazon

IV. Post-usage action-72% sell at least few-27 % do not sell.

V. Impression

- 91% will use a web site selling textbook at cheaper price.- 50% will be willing to use a new service that allows them to rent out their book inside campus.

No

Demographic

Character

Analysis Method

value Mean Std. Dev.

p-value

Conclusion

1. Type of Institute

Two samples T-test

Public 7.4828 1.84431

.880 No significant differenceprivate 7.4054 2.5043

52. Level of

Enrollment

One-way ANOVA

Freshman 6.0000 .70711 .841 No significant difference

Sophomore

7.7692 .72637

Junior 7.3333 .49441Senior 7.1538 .52922Graduate 7.5357 .33513Others 7.5000 2.5000

3. Status of attendance

 Two samples T-test

Full-time 7.4362 2.26026

.9000 No significant differencePart-time 7.3333 3.1225

0

4. gender  Two samples T-test

Male 7.2963 2.30364

.552 No significant differenceFemale 4.5714 2.3717

1

5. Citizenship

 One-way ANOVA

USA 7.9318 2.22457

.239 No significant differenceAsia 7.0938

22.29107

Europe 5.5000 2.12132

Latin America

7.8889 1.90029

Middle East

6.9231 2.13937

Others 5.6667 5.13160