FINAL REPORT – DECEMBER 2011 “TO BUY OR NOT TO BUY A CD”

Project TeamProject TeamMaclynn Kornreich

Dejon LoftonAlexa Tanney

Math 110Brought to life with Addressable Minds

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Topics

• Identify a business or social issue to which surveying will get to the mind of the consumer

• Addressable Minds… what is it, and how it works

• Review the study process and the results and conclusions

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Purchasing of CD’s Issue

• An increased number of people have begun to download music illegally off of the internet.

• Many artist have begun to feel discouraged within their careers

• Artist and record labels need to know how to hold their consumers interest and how to produce more sales of their CDs.

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About Addressable Minds

• Addressable Minds is a scientific, actionable form of “predictive consumer intelligence” for business and social issues accurately defining consumer attitudes and preferences both stated and unstated.

• It has been described by Malcolm Gladwell and others as discovering the “DNA of the Consumers Mind”.

• This patented science created by Dr. Howard Moskowitz, author of “Selling Blue Elephants” (Wharton Press) and the Wharton Business School has achieved critical acclaim and financial success across:

– product design and development, – consumer messaging,– more effective consumer engagement physically and digitally.

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Dr. Howard Moskowitz.Addressable Minds Inventor, honored by the scientific community,...

• Is the Chairman of iNovum, a graduate of Queens College and holds a Ph.D. in Experimental Psychology from Harvard

University.

• Won two of the most prestigious awards in marketresearch

• 2005 Charles Coolidge Parlin Marketing Research AwardThe “Nobel Prize” of Market Research, received only

by the pioneers of market research. Recipients include Arthur Nielsen, George Gallup, Michael Porter, David Ogilvy and Philip Kotler.

• 2010 Walston Chubb Award for Innovation across all sciences, Sigma Xi, The Scientific Research Society, international Awarded for Mind Genomics: The science underlying the technology used in this Math 110 course.

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Addressable MindsAddressable Minds

Psychographic Segmentation - Social Class - Lifestyle Type - Personality Type

Behavioral Segmentation - Product Usage - Brand Loyalty - Attitudinal

Demographic Segmentation - Age - Gender - Income

Addressable Minds

Cuts across traditional segmentation & detects hidden preferences

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Create Addressable Minds messaging for sales

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DEVELOP SURVEY QUESTIONS

Potential buyers of CDs or illegal downloaders

ANALYZED SURVEY RESULTS → Addressable Minds

INTERNET

IdeaMap™SUY SURVEY

IDENTIFY TARGET MARKET

Total Sample

Seg 1 Self Driven Online

Banking Seekers

Seg 2 Technology/

High Security Seekers

Seg 3 Collaborative

Online Seekers

Seg 4 Personal Touch with Technology

Base Size: (267) (105) (50) (59) (53) Constant: 31 34 28 31 26

OC1 Connect online in 'real time' with a customer rep via instant messaging, voice over IP or video conferencing via your computer 0 2 2 5 -13

OC3 Faster loan application process…work in real time online with a loan officer 0 0 -8 12 -8

OC4 Our bank's customer service reps will help you browse and use our online banking services -1 0 -6 10 -10

OC2 Use our online tool to find and schedule at your convenience an online working session with an expert such as investment broker, insurance agent, and/or loan officer -3 1 -11 6 -12

ON3 We will answer all your requests in 'real time' by email, instant or text messaging 1 7 -11 3 -1

ON4 We offer 'On demand' status reports for services requests (e.g., loan application) delivered to you via e-mail, text or instant messaging

1 6 -4 -3 0ON2 No more paper mail... We will send you statements and images of

transactions securely by email -2 5 -17 -5 2ON1 We allow you to pay bills securely using your mobile devices (cell

phone, PDA, Blackberry, etc.) -4 2 -13 -9 -2

BR3 We offer a bank-issued smart card so we can recognize you entering the branch and process your needs faster 4 2 6 -3 13

BR4 Choose a secure eye or finger security scan to identify you immediately in-branch and at ATM 4 3 10 -1 3

BR2 We have the most secure biometric system that identifies you as you enter the branch so we can process your needs faster 2 -1 8 -5 6

BR1 We will recognize our customer's mobile phone signal when entering a branch so we can recommend appropriate bank products, promotions and special services -4 -3 -6 -11 2

Online Collaborative

Online Other

In-Branch Recognition

No more paper mail – we will send you copies of statements by secure e-mail

Securely manage your account by PDA, Internet of automated telephone

Our banks customer services reps will help browse & use our on-line services

Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it

No more paper mail – we will send you copies of statements by secure e-mail

Securely manage your account by PDA, Internet of automated telephone

Our banks customer services reps will help browse & use our on-line services

Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it

MARKET SEGMENTATION SEGMENTATION WIZARDMARKETING PHRASES

10 – 15 minutes

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Addressable Minds’ underlying scienceuses standard Science and Mathematics

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DEVELOP SURVEY QUESTIONS

Potential buyers of CDs or illegal downloaders

ANALYZED SURVEY RESULTS → Addressable Minds

INTERNET

IdeaMap™SUY SURVEY

IDENTIFY TARGET MARKET

Conjoint analysisOrdinary Least Squares Regression

Discriminant Function Analysis

Experimental Design – Stimulus/Response

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A Survey Was Performed by the Team in the area of CD Sales

• To serve as a learning vehicle for the application Addressable Minds to a practical business or social issue

• Sufficient to show the power of the method

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SURVEY OVERVIEW(1 of 2)

An Addressable Minds Survey is a survey of key ideas for CD sales and illegal downloading.

Survey conducted on November 6, 2011 :◦ Population Ages 18 and over of Males/Females across the US

The team created key marketing and advertising messaging with the intent to entice the survey taker to purchase CDs instead of downloading music illegally.

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SURVEY OVERVIEW(2 of 2)

• 51 Individuals responded

• Assess two major aspects of messages– Does it convince a prospect to purchase CDs?– How does it make the prospect feel about illegal downloading?

• Data reveals the mind-sets of respondents across the United States, as well as ‘what works, what doesn’t’

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The Survey begins with an orientation screen

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Each respondent evaluates 48 unique combinations of elementsFirst on overall interest

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Then selects a single emotion

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What convinces?

What drives feelings?

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Total Panel – Interested in purchasing the CD and not downloading music illegally

1) How likely are you to buy a CD based on this information?<-- Not likely at all                       Very likely - ->

1        2         3        4        5        6        7        8        9Sorted by Total Sample : Highlighted >+9 winners & <-9 losers

Sorted byTotal

Sample

  Base Size 51

  Constant 40

B1When purchasing the latest CD by your favorite aritst, you will receive an autographed cover.

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B4 One day, this CD will be a collectors item and be worth a lot of money. 14

C4When you purchase the CD, you will receive a code for a free music video off of ITunes

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B3 The CD includes lyrics to all of the songs on the disk 9

A1 Purchasing a CD by your favorite aritst helps better their career. -9

F6 Your ISP (Internet Service Provider) can ban you from internet access. -13

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The Total Panel’s Interest is Different From That in Each of The Two Identified Segments

1) How likely are you to buy a CD based on this information?<-- Not likely at all                       Very likely - ->

1        2         3        4        5        6        7        8        9Sorted by Total Sample : Highlighted >+9 winners & <-9 losers

Sorted byTotal

SampleSeg1 of 2 Seg2 of 2

Base Size 51 32 19

Constant 40 48 28

When purchasing the latest CD by your favorite aritst, you will receive an autographed cover. 16 11 25

One day, this CD will be a collectors item and be worth a lot of money. 14 11 20

When you purchase the CD, you will receive a code for a free music video off of ITunes 12 11 15

The CD includes lyrics to all of the songs on the disk 9 6 15

The CD booklet includes many pictures of the aritst and fans. 9 -2 27

Special CD packages contain bio features or other things of the artist choice. 6 14 -7

Purchasing a CD by your favorite artist includes a track-list of all the songs on the CD 6 4 9

This CD is a limited addition and will not be available for a long period of time. 3 -8 20

You encourage and enable the artist to continue producing CD's. 2 -3 10

Music on CD’s have professional sounding tracks, as if you were in studio yourself. 2 12 -15

Most songs when illegally downloaded are not even the song, but instead just a random person speaking.

-4 1 -12

Purchasing CD's by your favorite artist will boost their career financially. -6 -3 -10

Federal law states downloading music illegally can be a fine of $150,000 per song. -6 -13 7

Hackers target those who download music illegally and they send viruses and can destroy your computer.

-9 -20 11

Purchasing a CD by your favorite aritst helps better their career. -9 -12 -5

Your ISP (Internet Service Provider) can ban you from internet access. -13 -17 -7

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There are two unique segments

Messaging for one isn’t necessary going toappeal to the other…and could actually hurt

Extras/Promo Hunters

63%

Realist/True Fans

37%

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Extras/Promotion Hunters (Seg1)- Interested in the extra bonus features of the CD’s they purchase.

1) How likely are you to buy a CD based on this information?<-- Not likely at all                       Very likely - ->

1        2         3        4        5        6        7        8        9Sorted by Total Sample : Highlighted >+9 winners & <-9 losers

Sorted by

Total Sample

Seg1 of 2

Seg2 of 2

Base Size 51 32 19Constant 40 48 28

Special CD packages contain bio features or other things of the artist choice. 6 14 -7Music on CD’s have professional sounding tracks, as if you were in studio yourself.

2 12 -15

When purchasing the latest CD by your favorite aritst, you will receive an autographed cover.

16 11 25

One day, this CD will be a collectors item and be worth a lot of money. 14 11 20When you purchase the CD, you will receive a code for a free music video off of ITunes

12 11 15

The CD includes lyrics to all of the songs on the disk 9 6 15

Purchasing a CD by your favorite artist includes a track-list of all the songs on the CD

6 4 9

Most songs when illegally downloaded are not even the song, but instead just a random person speaking.

-4 1 -12

The CD booklet includes many pictures of the aritst and fans. 9 -2 27You encourage and enable the artist to continue producing CD's. 2 -3 10Purchasing CD's by your favorite artist will boost their career financially. -6 -3 -10This CD is a limited addition and will not be available for a long period of time. 3 -8 20

Purchasing a CD by your favorite aritst helps better their career. -9 -12 -5

Federal law states downloading music illegally can be a fine of $150,000 per song.

-6 -13 7

Your ISP (Internet Service Provider) can ban you from internet access. -13 -17 -7

Hackers target those who download music illegally and they send viruses and can destroy your computer.

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Realist/True Fans (Seg2)- Interested in not only bonus features, but also the artist themselves and the music.

1) How likely are you to go to this resort?<-- Not likely at all                       Very likely - ->

1        2         3        4        5        6        7        8        9Sorted by Total Sample : Highlighted >+9 winners & <-9 losers

Sorted by

Total Sample

Seg1 of 2

Seg2 of 2

Base Size 51 32 19Constant 40 48 28

The CD booklet includes many pictures of the aritst and fans. 9 -2 27When purchasing the latest CD by your favorite aritst, you will receive an autographed cover.

16 11 25

One day, this CD will be a collectors item and be worth a lot of money. 14 11 20This CD is a limited addition and will not be available for a long period of time. 3 -8 20The CD includes lyrics to all of the songs on the disk 9 6 15When you purchase the CD, you will receive a code for a free music video off of ITunes

12 11 15

Hackers target those who download music illegally and they send viruses and can destroy your computer.

-9 -20 11

You encourage and enable the artist to continue producing CD's. 2 -3 10Purchasing a CD by your favorite artist includes a track-list of all the songs on the CD

6 4 9

Federal law states downloading music illegally can be a fine of $150,000 per song.

-6 -13 7

Purchasing a CD by your favorite aritst helps better their career. -9 -12 -5Your ISP (Internet Service Provider) can ban you from internet access. -13 -17 -7Special CD packages contain bio features or other things of the artist choice. 6 14 -7Purchasing CD's by your favorite artist will boost their career financially. -6 -3 -10Most songs when illegally downloaded are not even the song, but instead just a random person speaking.

-4 1 -12

Music on CD’s have professional sounding tracks, as if you were in studio yourself.

2 12 -15

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The “Segmentation Wizard” is a 30 second shortcut survey that is extracted from the 15 minute survey and identifies the segment

membership of that individual

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DEVELOP SURVEY QUESTIONS

Potential buyers of CDs or illegal downloaders

ANALYZED SURVEY RESULTS → Addressable Minds

INTERNET

IdeaMap™SUY SURVEY

IDENTIFY TARGET MARKET

No more paper mail – we will send you copies of statements by secure e-mail

Securely manage your account by PDA, Internet of automated telephone

Our banks customer services reps will help browse & use our on-line services

Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it

No more paper mail – we will send you copies of statements by secure e-mail

Securely manage your account by PDA, Internet of automated telephone

Our banks customer services reps will help browse & use our on-line services

Manage all your banking needs with a state of the art kiosk and be confident that live help is available if you need it

SEGMENTATION WIZARD

10 – 15 minutes

Segmentation Wizard consists of 3 or 4 elements identified in the in-depth 10 – 15 minute survey

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The CD Project Segmentation Wizard– Online example

The Segmentation Wizard is a short survey with the questions derived from the full survey to identify

segment membership

http://mjiweb.com/mjitt/QC_Fall2011_CD/index.htm

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The CD Project Segmentation Wizard– Online example

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Conclusions • The two segments created by the Addressable minds survey for

CDs now allows music promoters to know what to use to entice customers.

• Restating what the CD already comes with and then adding a

legacy to it can effect the way people view the product.

• You can improve CD sales, but you have to show consumers that there are benefits to spending their money rather than downloading illegally.– Know the segmentation– Give the right message to the right segment

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