Customer’s Motivation towards NOVA Electronic Shop:

Analysis of Marketing Mix Theory

Global Marketing CourseNational Chiao Tung University

By:Hendrik LiIIM / 9637533

Research Methods

OutlinesIntroduction

Discussion & Suggestion

Data Collection &Analysis

Literature Review

IntroductionResearch Background

Research Questions & Hypotheses

Research Methods & Limitations

Research Background• In 2004, the size of the computer and consumer electronics retail market worth more than NT$200 billion in Taiwan• NOVA is one of the biggest players for consumer electronic retailer in Taiwan• NOVA using marketing mix theory (Product, Price, Place and Promotion)

Research Question and Hypotheses

Research Questions:1. From 4 Ps marketing mix theory, which factor that drives the customer the most to go to NOVA?2. Is there any other factor that make the customers go to NOVA?

Research Question and Hypotheses

Hypotheses :H1. From 4 Ps, Place is the most important factor for NOVAH2. Promotion is the weakest factor

Methods and Limitations

Methods

•Qualitative approach (Secondary data)•Quantitative approach (Questionnaire)

Limitations

• Secondary data

• Respondents

Literature ReviewDefiniti

on

4 Ps

Summary of 4 Ps

NOVA

Literature Review

Definition of Marketing MixThe division of groups to make a particular product, by pricing, product, branding, place, and quality

4 Ps

Promotionall of the communications that a marketer may use

in the marketplace

Pricethe amount a customer

pays for the product

ProductA tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units

Placethe location where a product can be purchased. It can include any physical store as well as virtual

stores on the Internet

Summary of Marketing Mix

Product

• Functionality

• Appearance• Quality• Packaging• Brand• Warranty• Service

Price

• List price• Discounts• Allowances• Financing• Leasing

options

Place• Channel

members• Channel

motivation• Market

coverage• Locations• Logistics• Service

levels

Promotion

• Advertising• Personal

selling• Public

relations• Message• Media• Budget

NOVARevenue for all Taiwan: NT$ 16 billion per yearVisitors per month: 1.200.000 people

NOVA movement : • NOVA Taipei, July 1996 • NOVA Tai Chung, January 1997• NOVA Kao Shiung, July 1997• NOVA Hsin Chu, April 1998• NOVA Chung Li, August 1999• ENOVA.com.tw, January 2001• NOVA Tao Yuan, May 2006

Data Result & Analysis

Product 1 2 3 4 51.      NOVA provides complete and updated electronic products 0 0 0 17 4 882.      Products that sell in NOVA come with good quality, warranty and services 0 0 4 14 3 833.      I am satisfied with the products in NOVA 0 0 9 12 1 80Price4.      NOVA gives a lot good discounts 1 7 7 6 1 655.      NOVA has good leasing options (pay monthly) 0 3 14 3 1 656.      I am satisfied with the product price at NOVA 0 3 11 5 2 69Place7.      NOVA’s location is easy to reach 0 0 1 9 12 998.      A lot of people from out of town go to NOVA 0 3 10 5 3 719.      I am satisfied with NOVA’s location 0 0 1 11 9 92Promotion10.   I see a lot of NOVA’s advertisement 1 8 7 5 0 5811.   I understand NOVA promotion’s message 1 5 9 7 0 6612.   I am satisfied with NOVA promotion activity 1 4 11 5 0 62

GRAND TOTAL 89813.      My biggest reason to go to NOVA because of:a. the product (7) b. the price (5)c. the place (9) d. the promotion (1) e. Others:

TOTAL

Strong Disagree

Strong AgreeDisagree Neutral Agree

Effect to the grand total:Product = (88 + 83 + 80)/898 * 100% = 27.95%Price = (65 + 65 + 69)/898 * 100% = 22.16%Place = (99 + 71 + 92)/898 * 100% = 29.18%Promotion = (58 + 66 + 62)/898 * 100% = 20.71%

Data Result & Analysis

Other test

Q13 : My biggest reason to go to NOVA because ofa. Product b. Price c. Place d. Promotion e. Others

Data Result & Analysis

From the data collection and analysis, the conclusion that we get are:1. Place is the strongest factor that drives customers go to NOVA , 29.18% (H1 correct)2. Promotion is the weakest factor from the customers’ point of view, 20.71% (H2 correct)3. Place is also the biggest factor that female customers chose to go to NOVA

Discussion

For the future research regarding to NOVA, the author’s suggestions are:1. Can find the reasons why NOVA’s promotion is so weak2. And what is the effect for NOVA if it strengthened another P, besides the 4 Ps, like People, Packaging, etc.

Suggestion

THANK YOU