Target Corporation Questionnaire Report

Monica Baerg, Demi Dailey, Alex Engelhardt, Andrew La, Victoria Nguyen, Frank Rodarte,

Steven Wong

California State University Fullerton

Communications 410

Dr. Wu

December 5, 2016

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Table of contents 1

Executive summary 2

Background 3

Objectives 5

Methodology 5

Findings 7

Demographics 18

Appendix A Questionnaire 19

Appendix B Graph Results 25

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Executive Summary

Target Corporation 2016 financial news release of its second quarter earnings reported a 2% drop

in sales. For Target Corporation to understand why sales and foot traffic are down a survey that contained

various questions about Target Corporation was conducted. It was administered to variety of recipients

who came from a variety of demographics. The survey was conducted to collect information from

consumers to determine whether Target’s gender neutral bathroom and product availability affected

Target Corporation.

The survey results provided information on specific findings that ranged from product availability

issues, gender neutral bathroom, enlightenment of promotions, and overall satisfaction of Target. In the

survey only 64% of respondents visit Target 0-30 times a year while 36% visit Target 30 times or more so

it is important for Target Corporation to take certain steps to increase foot traffic and sales in Target

stores.

The results of the data shows that 71% of our respondents are aware of the gender neutral

bathroom policy. 47% of the respondents believes that Target’s sales are affected by the gender neutral

bathroom policy and a quarter of respondents neither agrees or disagrees. Cumulatively 64% are still

extremely likely or moderately likely to continue shopping at Target. 69% of respondents also reported

that they would recommend Target to a friend of family. One of Target corporation core beliefs is

“continuing to stand for inclusivity”. Target Corporation should continue to implement the gender neutral

policy due to the fact that a majority of respondents are still likely to shop at Target while being aware of

the gender neutral policy. It was also found that 43% of respondents believes that Target should improve

their product availability with only 19% saying target shouldn’t. With 55% of respondents replying that

they would shop at a different physical store this signifies that Target should implement a new system that

keeps better track of stocking issues in Target stores.

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Background

In 1902 George D. Dayton, a banker and real estate investor, partners up with the Goodfellow’s

Dry Goods Company, leading to be the fourth largest department store in Minneapolis, Minnesota. Fast

forwarding to 1960, the Dayton Company then introduces a unique mass market discount store, which

had transformed from a family-run department store chain into one of the nation’s largest discount store

chains. On May 1, 1962 the Dayton Company held a grand opening of a new department-store in

Roseville, Minnesota, called Target. Target branded itself in combining different parts of department

store features including: fashion service and quality but held by low prices and discounts.

Following after the grand opening of the store, Target grew from a regional department store

company to one of the national retailers of affordable, quality fashion, innovative management,

community giving and good corporate governance. As a national retailer chain, the Bullseye logo design

was integrated into the company, producing the symbol of their unique products with low, discounted

prices. In 1969, the corporation opened its first distribution center warehouse in Fridley, Minnesota,

storing and shipping products to Target stores opened around Minnesota and the Detroit area. During the

year in opening the distribution center, the Dayton Corporation merges with J.L. Hudson Company of

Detroit to create the Dayton-Hudson Corporation, becoming one of the 15 largest non-food retailers in the

nation.

A few years later in 1975, Target introduces their first planograms which became an integral part

of the corporation by getting rid of clutter and keeping track of in-stock merchandise for guests. Not only

that, but In 1988 Target became the first mass merchandiser to utilize the Universal Product Code (UPC)

bar-code packaging technology. The UPC creates a unique and evolved form of in-store shopping

experience with a greater sense of inventory management, increased automation and a shorter wait time at

the checkout lines for guests.

Technology soon became an integral part of the Target chains by introducing a store credit card

(now known as the REDcard today) and became the first of many to accept company credit cards in all

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Target locations starting out in 1995. Four years after that, Target then moves online allowing guests to

shop a wide assortment of affordable, yet fashionable products within the comfort of their homes.

With all the expansions over the years, it was a matter of time before the Dayton-Hudson

Corporation renamed itself the Target Corporation to better reflect their main business. As of July 2004,

Target opened its 1,000th store all within 47 states of the country, including in 1983 when they expanded

stores to Southern California. A year after the rebranding, Target then exceeds to an estimate of $50

billion in annual sales. The 2000s have been a perfect model of transition to accommodate the social

norms of the new generation by introducing new and organic foods, along with fashionable clothing

styles for plus-size women.

The clothing lines, especially, opened up a new support for women under the “Target Loves

Every Body” campaign that features swimwear and accessories specially designed to flatter all body

types. Following that campaign, Target signed on to the Equality Act to take a stand against worker

discrimination in September 2015. Further progressing as a corporation, Target was later recognized in

October by the Human Rights Campaign as one of the Best Places to Work for LGBT Equality, earning a

score of 100 on the 2016 Corporate Equality Index. Resulting from this recognition, the Target

Corporation are now in place of implementing gender neutral bathrooms, opening in all but 20 of Target’s

1800 locations in 2017. Target brands itself to its guests, catering to support from clothing to foods to

better provide for the communities.

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Objectives

The questionnaire was designed to answer our following objectives:

● Does Target’s lack of inventory issues play a significant role in why some consumers choose

other option?

● Has Target Corp. effectively addressed the transgender bathroom issues without creating

significant negative press and a loss of sales from either side of the spectrum? And does this

affect their choice of where to shop?

Methodology

In order to better understand customers and improve on experiences with our brand,

our Target Corp. focused group created a survey to gain insight on consumer opinions regarding

the gender-neutral bathroom implementation, previously reported out-of-stock issues, as well as

general consumer information—all of which were the main topics from our past conducted focus

group. Using Qualtrics, a research software, a quick survey was made including a number of

differently formatted questions to get the most thorough responses possible. Surveys were the

best option for our main target audience because it caters to a need for convenience via internet

as well as only a short increment of time needed. Because of this accessibility, we were able to

reach over 250 surveys—with our original goal being 200-- in our allotted two-week time frame.

Questionnaire: Together, Group 7 formed questions used within our survey as well as designed

the survey itself. Our focus group gave us insight that it may be necessary to expand on Target’s

shortcomings audience. Using our focus group as a starting point for creating a questionnaire, we chose

questions that would best illustrate how Target’s consumers felt regarding the company’s choice in

gender neutral bathrooms and stock issues and if it affects their business at Target, which in turn affects

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Target Corp. sales. After Professor Wu approved of our survey outline, we added the questionnaire to the

survey software. In Appendix A, a copy of our questionnaire can be found.

Methodology employed: Using Qualtrics, a survey program that is well-known amongst other

college students, we created a survey that would mostly target college-students as well as families, both

of which tends to be Target’s main demographic. We then shared links to our survey via school share

pages and social media.

Data Collection: The survey program Qualtrics include survey making capabilities as well as built-in

data collection features, which we utilized in order for our group to interpret the results

Data processing and analysis: Qualtrics processed surveys and results created a cross-tabulation of all

the survey respondents:

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Findings

Q1 - How many times per year do you visit Target?

We found that about 36% of people shop at Target more than 30 times per year and found that about 20%

visit Target 20-30 times per year. We also found that about 21% shop at Target 10-20 times per year and

21% shop at Target 0-10 times a year

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Q2 - How much do you generally spend each time you shop at Target?

We found that 5% of people spend more than a $100 at Target and 6% spend $81-$100. Also, about 9%

of people spend $61-$80 at Target. About 25% of people said they spend $41-$60 at Target. The highest

percentage was 38% of people who spend $21-$40. And about 17% spend $0-$20.

Q3 - Why do you shop at Target? (Check all that apply)

About 50% of respondents said they shop at Target for the deals and prices and about 52% said because

of the products. About 39% said because of friendly service/atmosphere and 48% said because of the

clean organized stores. Only 7% said they shop at Target because of Target’s progressive movements and

12% said because of family tradition. About 39% said they shop there because they prefer it to other

competitors. About 59% said they like the convenient locations, well about 4% said other and elaborated

answer was “it’s not Wal-Mart.”

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Q4 - What services have you taken advantage of at Target stores? (Check all that apply)

The most popular service was Starbucks with a whopping 62% of people and the runner up is the Food

Court with 44%. Only 6% take advantage of the optical service and about 26% take advantage of the

pharmacy. About 11% use the wedding registry service and about 4% said all of the above. 17% said they

don’t use any of the services.

Q5 - What do you purchase at Target? (Check all that apply)

Both grocery and clothing/accessories got 71% of respondents saying that’s what they purchase at Target.

Electronics/Media and beauty products got around 60% and almost identical is home goods with 61%.

About 22% said they shop there for car accessories and 25% shop for sports equipment. Toiletries got

65% of shoppers and vitamins/medicine got 39%. Books and toys both got around 28% of respondents.

The dollar section got 51% and office supplies got about 58%.

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Q6 - Where do you find information about Target products and promotions? (Check all that apply)

The top two results of where people get their information from, Internet with 49% and in store with about

61%. About 29% said they get it from friends and 33% said social media. 36% said they get it from social

media and only 7% get information from the radio. About 10% said they get it from billboards, about

26% from Target’s website and 17% said newspaper inserts.

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Q7 - Targets always has the items I’m looking for

23% said they strongly agree and 44% said they agree. About 24% said they somewhat agree and only

5% said they neither agree nor disagree. Only 1% said they somewhat agree and also 1% said they

disagree. And no one responded with strongly disagree.

Q8 - If Target is out of stock for what I'm looking for, I (Please rank in order of desirability

with 1 being Most Desirable and 6 being Least Desirable by dragging and dropping)

A. Go to a different Target location. This is one of the most popular options with 32% having this as

their first choice and 21% having it as their second choice.

B. Shop at a different physical business. This is an extremely popular option with 55% having it as

their first or second choice.

C. Wait for your Target location to restock what you need. Only 5% chose this at their first option,

but 21% chose it third and 27% chose it fourth.

D. Find an alternate item. 21% made this their first choice and 23% made it their second choice. In

addition, 21% also made this their third choice.

E. Shop Target online, 9% chose this option first and 10% made it their second choice. Most

respondents would rather exhaust other options first

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F. Shop another online business. This is the least popular option with 42% making this their last

choice.

Q9 - Do you believe that Target should improve on the amount of products available in stock?

About 14% said “yes” and 29% said “probably yes”. The most popular response was “might or might

not” with about 36% and 17% said probably not. Only about 3% responded with “definitely not”.

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Q10 - How often do you search for these products?

A. Hygiene. This is one of the most popular product categories. 36% of those surveyed search “very

often”. These products are also in stock most of the time with 80% saying that they are in stock

“very often” or “somewhat often.”

B. Clothing. 37% search for clothes “somewhat often” and 20% feel that they search for them

“neither often or unoften.” In addition, 35% say that clothes are in stock “very often 41%

“somewhat often.” 2% say that they are “not often” in stock.

C. Food. 36% look for food “neither often or unoften” to “never. 27% look for it “very often.” For

76% food is in stock most of the time. 4% say it is “not often” in stock.

D. Kids Toys. 52% rarely or never search for this type of item. When they do search for them

though, they are in stock 57% of the time with only 2% saying that they are “never” in stock.

E. Technology. Only 11% look for this “very often” whereas 27% are rarely or never searching for

it.For 40% of survey takers, technology items are in stock “somewhat often”, and are in stock

“very often” 29% of the time.

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F. Sporty Products. 56% of respondents are only sometimes or rarely looking for sports equipment.

4% are looking for it “very often.” When they do look for it, 30% can find it “very often” and

34% can find it “somewhat often.”

G. Home Goods. Of those surveyed,14% are looking for it “very often” 38% are looking for this

type of product “somewhat often.” 37% can find it in stock “very often” and 0% of respondents

can “never” find it.

H. Beauty. 55% of the survey takers are looking for this product most of the time and 10% are

“never” looking for it. This is likely because the majority of respondents are female. Those that

are looking for it can usually find it 73% of the time. 1% are “never” able to find the beauty

products they are looking for.

How often: In stock:

Q11. Have you heard of Target’s new gender neutral bathrooms?

71% of respondents said that they had heard of Target’s new bathroom policy. 28% said they had not

heard of this. As the majority of respondents are Millennial age it is possible that they are more aware of

issues like this.

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Q12. Considering Target’s new gender neutral bathroom policies, how likely are you to visit Target

on a future shopping experience?

A surprising number, 46%, of survey takers are “extremely likely”, 18% are “moderately likely”, and

15% are “neither likely nor unlikely”. The remaining responses ranked between 2% and 7%.

Q13. How important do you consider the existence of gender neutral bathrooms in Target

locations?

The top responses are “not at all important” 29%, “moderately important” 24%, and “extremely

important” 18%. These results are most likely because the majority of those who responded identify as

male or female.

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Q14. Do you agree with the following statement: Target’s decreasing sales are due to the

company’s stance on gender neutral bathrooms?

30% “somewhat agree” with the statement while 8% “strongly agree. 13% “strongly disagree.”

24% did not feel strongly either way.

Q15. Which of the following needs or does not need improvement in Target stores?

Number each using the scale below: (1) Needs a lot of improvement (2) Needs some

improvement (3) Needs no improvement.

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A majority of respondents, 68% felt that the Starbucks coffee locations in Target stores need “no

improvement.50% felt that the product stock needed “some improvement” and 23% feel that the

grocery section “needs a lot of improvement.”

Q16. Would you recommend Target to friends or family?

Respondents would overwhelmingly recommend Target with 69% saying they would and only

8% saying that they would not. 21% said maybe.

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Demographics

Q17. How old are you?

58% are between the ages of 18-24. Only approximately 8% were 55 or older.

Q18. If you are a college student, please indicate your year below.

Only 9% who answered are Freshmen. 23% are Sophomores and 28% are Juniors. 29% are

Seniors and 9% Graduate students.

Q19. Relationship status

35% are single and 31% are dating. 29% are either married or in a long term partnership. 2% are

divorced or separated.

Q20. Gender

35% of survey takers were male and 59% were female. In addition, nearly 3% identified as non-

binary/third gender or prefered to self-describe. Nearly 2% prefered not to disclose.

Q21. Race

37% listed themselves as White/Caucasian and 25% as Hispanic. 17% listed as Asian/Pacific

Islander, 7% as African American and 11% as two or more races.

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Appendix A

Questionnaire

Introduction

We are a group of marketing students conducting a survey to gather college students’ opinions regarding

Target Corporation's inventory issues bathroom policies affecting Target sales. This survey will take

approximately 15 minutes. Your responses are voluntary and will be kept confidential. Responses will not

be identified by individual. All responses will be compiled together and analyzed as a group. Obtaining

your feedback is vital to the review process and the success of this study.

If you have any questions or concerns, please contact Demi at demidailey28@csu.fullerton.edu Thank

you for your participation.

1)How often do you visit Target in a year?

0-10 10-20 20-30 30 or more

2)How much do you generally spend each time you shop at Target?

Sliding Scale

● $0-$20

● $21-$40

● $41-$60

● $61-$80

● $81-$100

● $100+

3)Why do you shop at Target (Check all that apply):

❏ Deals/Prices

❏ Products

❏ Friendly Service/Atmosphere

❏ Clean/Organized Stores

❏ Progressive Movements

❏ Family Tradition

❏ Because it's better than Walmart

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❏ Convenient location

❏ Other : __________________________

4)What services have you taken advantage of at Target?:

❏ Starbucks

❏ Food court

❏ Optometry

❏ PharmacyWha

❏ Wedding registry

❏ All of the above

❏ None

5)What do you buy at Target? (Check all that apply):

❏ Clothing/accessories

❏ GroceriesTa

❏ Electronics/Media

❏ Beauty products

❏ Car accessories

❏ Sports equipment

❏ Toiletries

❏ Home goods

❏ vitamins/medicine

❏ Books

❏ Toys

❏ Dollar section

❏ Office supplies

6)Where do you find information about Targets products and promotions?

(Select all that apply)

_Internet

_Friends

_Social media

_Commercials

_In store

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_Radio

_Billboards

_Website

_Newspaper inserts

7)Target always has the items I’m looking for

(Likert scale)

Strongly Agree (1) Agree (2) Somewhat agree (3) Neither agree nor disagree (4) Somewhat disagree (5)

Disagree (6) Strongly disagree (7)

8)If Target is out of stock for what I'm looking for, I:

(1 being most desirable, 6 being the least)

_Go to a different Target location

_Shop at a different physical business

_Wait for your Target location to restock what you need

_Find an alternative item

_Shop Target online

_Shop another online business

9)Do you believe that Target should improve on the amount of products available on the shelf?

Yes

No

10) Using the table below, analyze the following Target products:

(Hygiene, Clothing, Food, Kid’s Toys, Technology, Sports Products, Home Goods, Beauty)

-How often do you search for these products? (Not often, somewhat often, very often)

-Are the products always in Stock?

(Not often, somewhat often, very often)

11)Have you heard of Target’s new gender neutral bathrooms? If no, then skip question

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❏ Yes

❏ No

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12) Considering Target’s new gender neutral bathroom policies, how likely are you to visit target on your

next shopping experience?

_Extremely likely

_Moderately likely

_Slightly likely

_Neither likely or unlikely

_Slightly unlikely

_Moderately unlikely

_Extremely unlikely

13) How important do you consider the existence of a gender neutral bathrooms in all Target locations?

_Extremely Important

_Very Important

_Moderately Important

_Slightly Important

_Not at all Important

14)Target’s decreasing sales are due to the company’s stance on gender neutral bathrooms. Do you agree

with this statement?

❏ Strongly Agree

❏ Somewhat Agree

❏ Neither Agree or Disagree

❏ Somewhat Disagree

❏ Strongly Disagree

15) Which of the following needs or does not need improvement in Target? Number each using the scale

below:

Needs a lot of improvement (1) Needs some improvement (2) Needs no improvement at all (3)

__Bathrooms

__Costumer service

__Prices

__Food Court/Starbucks

__Pharmacy/Vision Services

_Product Stock

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_Grocery Section

16) Would you recommend Target to friends or family?

❏ Yes

❏ No

17) How old are you?❏ Under 18 years old

❏ 18-24 years old

❏ 25-34 years old

❏ 35-44 years old

❏ 45-54 years old

❏ 55 years or older

If you are a College student, please indicate your year below:

_Freshman

_Sophomore

_Junior

_Senior

_Graduate Student

Relationship status

_Single

_Dating

_Married

_Divorced

_Long term partnership

18) Gender

❏ Male

❏ Female

❏ Neither

19) Race

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❏ Caucasian

❏ Hispanic

❏ Asian/Pacific Islander

❏ African American

❏ Native American

❏ Two or more races

❏ Other

Appendix B

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Graph Results

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Green: Needs no improvement Red: Needs a lot of improvement Blue: Needs some imrpovement

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