Consumer Preferences: Young vs. Seniors

This assignment delves into the distinct consumer preferences between younger individuals (below 64) and seniors (65 and above). It presents data on purchasing preferences across various channels like retail, concerts, online, mail, and phone. Additionally, it explores listening preferences through mediums such as cassette, CD, live performances, digital formats, and radio. The assignment further includes a calculation of median rankings for both age groups and determines significant differences in their choices.

Case study
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Table of Contents
INTRODUCTION........................................................................................................................................3
Analysis of Individual Tasks..................................................................................................................3
2.1 Analysis of Senior Citizen Music Market.........................................................................................3
2.2 Analysis of Secondary Data.............................................................................................................4
(B). Graphical presentation..................................................................................................................5
2.3 Analysis of Primary Data (Field Observations)................................................................................5
(A). Combined results...........................................................................................................................5
(B). Biasness.........................................................................................................................................6
(C). Improvement in data collection.....................................................................................................6
2.4 Analysis of Primary Data (Questionnaires).....................................................................................6
(A). Calculation of median ranking for Young at heart and seniors......................................................7
(B). Determining significant difference.................................................................................................7
(C). Survey Intern’s results....................................................................................................................8
(D) Statistical test.................................................................................................................................8
CONCLUSIONS..........................................................................................................................................8
REFERENCES...........................................................................................................................................10
APPENDICES...........................................................................................................................................11
Appendix 1: Calculations of % of total CDs sold, estimated profits and % of total profits..................11
Appendix 2 Field observations results................................................................................................11
Appendix 3 Calculation of median ranking at Young at heart and seniors.........................................11
Appendix 4 Determination of significant difference between younger and seniors...........................12
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INTRODUCTION
Tribute Ltd is a UK based micro entity that specialises in the promoting the tribute
artistic work and company has approached Jonnie Jones as a young and independent guitarist.
Jonnie is a tribute artistic of Hendrix who was the famous singer, rock guitar player and song
writer. He was well-famous for his excellent guitar performance and won many awards for his
well-played music and built a distinctive reputation throughout UK for the best quality tribute
performance across the age limit of senior citizens as well. In order to promote Jonnie’s album,
Tribute Ltd utilized nostalgia marketing so as to strengthen their market position and gain a
leading position in the music industry. In such regards, nostalgia marketing can be defined as a
procedure of marketing the current products and services featuring to the same marketing
practices of the past period that was famous, generated crowded audiences and brought success
to the entity. Although, it is using nostalgia marketing featuring Hendrix’s music products,
retail stores and websites in his home town, Brighton & throughout the South East of England
so as to boost sales, profitability and market share across UK. Therefore, its managers are
concerned with what they actually need to use either music in digital format, songs
downloading facilities from the internet or consider retail outlets for business growth &
progress. Thus, the report is prepared with the aim to explain the nostalgia marketing whether
the internet plays a major role in the marketing practices for Jonnie’s performance or not in the
future period. Moreover, it will also examine various primary & secondary data sources using
variety of techniques for the purpose of decision-making.
Analysis of Individual Tasks
2.1 Analysis of Senior Citizen Music Market
Nostalgia marketing refers to the marketing strategies of the firms tapping with the
strong positive cultural memories of the historical period that are used in the current marketing
and promotional plans for driving energies and create a strong impact on the consumers to
boost sales. With the stated scenario, it is clearly stated that Hendrix was well-famous for his
excellent guitar performance and won many awards for his well-played music and built a
distinctive reputation throughout UK for the best quality tribute performance across the age
limit of senior citizens as well (Cloonan, 2016). Thus, it is the main reason why Tribute Ltd
considering to incorporates his websites, music and others into the current marketing practices
for promoting Jonnie’s music albums for the business growth. It will bring substantial benefits
to the Tribute Ltd in many ways such as generating millennial audiences by encouraging
senior citizens and others with the past lovely music memories of the Hendrix.
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In UK’s music industry, statistical data reported that the total album equivalent sales
(AES) rose by 3.7% to 121.6m whilst the total retail value of music recording rose up from
1.02bn to 1.06bn by 3.5% (UK Music industry, 2016). In the modern competitive marketplace,
companies started marketing their goods and services using digitalized techniques like
websites for the online also called e-marketing. No-doubt, in the current era of advanced
technology, internet plays a major role in Tribute Ltd’s growth which is used to generate
customer traffic by encouraging them through using electronic media tools i.e. website, social-
media (Facebook, Twitter etc.), Video-Sharing (You-tube) and others. It can be evident that in
UK music industry, 50% of the total income is obtained in the form of digital sales which
clearly shows the rising trends towards listening music on internet and downloading as well
(UK to the world, 2016). Thus, it becomes clear that by the help of internet in nostalgia
marketing, Tribute Ltd can leverage optimistic expression and feelings of the senior citizens
towards music listening via representing a connection between Hendrix & Jonnie’s music
albums, guitar playing and so on and helps to boost sales in the future period.
2.2 Analysis of Secondary Data
As per the scenario, Tribute Ltd’s managers are concerned towards analysing the sales
performance of the Jonnie’s music CDs for the latest two years, 2014 to 2016. Presently,
Jonnie’s sells his music in the CDs format however, in order to create album, it incurs a cost of
2GBP/CD. It also comprises the cost of hiring the recording studio, technician cost & blank
CDs as well. There are 7 sales location in total at where Jonnie’s music has been sold to the
audiences that are Complementary (free of cost delivery), general (personal contact), mail
(post), web order(website), concert (venues of live performance) and retail (retail stores).
(A). Excel presentation
% of total CD: CD sold at individual location/Total CD sold in two years
Estimated profits: (Price of CD*Number of CD sold)-(Cost of CD, £2*Number of CD sold)
% of total profits: Estimated profits/Total profits of the Tribute Ltd
Calculations attached in appendix 1
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(B). Graphical presentation
Complimentary
General
Mail Order
Web order
Concert performance
Retail
Brighton Pubs
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
% of total
% of total profit
Interpretations: Above graph presented that highest sales of CDs through retail stores
totalled to 2459 which represent 51.44%. It indicates that excessive quantity of CDs are
distributed to the senior citizens through the retail stores. At the second position, senior citizens
bought music CDs of Jonnie at the venues where live performance has been concerted as it
accounted for 28.79% (1376 CDs). Due to highest sales performance, at both the operations,
profitability performance also shows remarkable total retail and concert profitability accounted
for 42.43% and 39.57% of the total profit (Berman and Wang, 2017). In contrast to this, free of
cost delivery of CDs incurred a loss of 0.75% and at the Brighton Pubs, very less number of
senior citizens bought the music CDs as it represented 1.51% of total CDs sold and 1.66% of
total net earnings. However, in the general, mail & web, first shows largest sales volume &
profit percentage to 7.38% and 8.12%, in contrast, mail & web accounted for 3.49% and 4.67%
of total CDs sold and 3.84% and 5.13% of overall net profit. Thus, from the evaluation, it can
be suggested to the Jonnie to offer their music albums maximum at retail stores to exceed
overall sales volume and return as well.
2.3 Analysis of Primary Data (Field Observations)
In the cited situation, primary data has been collected at two different locations to
examine the consumer behaviour towards Jonnie’s music performance by the way of field
observation at the Theatre in Uxbridge and shopping mall in Brighton. It is a qualitative
technique that is used to observe and investigate the experience, thoughts & opinion of the
users to examine their interest in Jonnie’s performance.
(A). Combined results
Refer to Appendix 2 for the combined results of field observation
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As per the results derived, it can be seen that greater number of consumers shown their
interest in the performance of Jonnie for a period of 2 minutes, as in Brighton Mall & The
Theatre, 41 & 19 audiences shown their interest by approaching his table, putting his CDs and
speaking with him during the performance. On the other hand, out of audiences, majority of the
people were belongs to the age group of 61-75 years, to 64 and 41 totalled to 105 people. Thus,
it indicates that senior citizens expressed their interest in listening Jonnie’s music however,
very less number of people were under the age of 15 and 30 to 2 & 4 members only (Polgar
and et.al., 2014). Moreover, out of the audiences, female candidates were founded in greater
proportion to 95 represented 60.89% of the surveyed people.
(B). Biasness
In the observation, selection of the venue is an important area and in the cited case, one
location is mall in Brighton and other one is Theatre which is a bias selection. Moreover,
people surveyed under both the locations are also different to 104 at Brighton Mall while there
were only half means 52 members has been observed at The Theatre in Uxbridge which
reflects that data collection was biased or not appropriate (Liberty, Lang and Shmakov, 2016).
(C). Improvement in data collection
The process of data gathering can be created bias free by selecting the same places,
where, larger number of audiences came to see Jonnie’s music concert. With the help of it,
equal number of population can be surveyed to examine their interest to assess that in what
extent, citizens of different age group are interested in listening Jonnie’s music and viewing his
live performance (Dryden and Mardia, 2016).
2.4 Analysis of Primary Data (Questionnaires)
Female
53%
Male
47%
Number of respondents
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As per the graph, majority of the surveyed people (53%) 49 were female whilst 47%
candidates were male represented 47% of the total sample size.
Under 44 45-54 55-64 65-74 75-84 85 and more
0
5
10
15
20
25
Number of respondents
The above column graph reflects that majority of the student intern surveyed were
founded under the age group of 55-64 to 20. However, 18 lies under 45-54 years, 17 were
under 75-84 year, 15 under 65-74, 14 under 44 and 8 above 85 year.
(A). Calculation of median ranking for Young at heart and seniors
Refer appendix 3
From the findings, it is visualized that under the age limit of 64 year, consumers gave
greatest importance or top most priority to the retail stores while mail and phone has been
preferred little purchasing preferences and concert was given at an average priority. In contrast,
in the senior age group, retail and concert both the buying points have been given with the
equal importance to 2 and mail and phone buying has been given equal priority point at an
average (Hacking, 2016).
However, on the other side, younger age group people gave least importance to the
cassettes and top preference to the CD and Radio. However, live performance has been given
little priority and digital at an average. However, in the elder age group, cassette, CDs and Live
performance has been given at an average importance and digital gains very less importance
and majority of the user listened music at radio.
(B). Determining significant difference
Refer appendix 4
From the findings, it is identified that as per the results of chi-square, the results derived
to 0.49 and 0.57 which is above the value of 0.05 which denotes that there is no significant
difference founded between the younger and senior citizens buying and listening preferences.
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(C). Survey Intern’s results
Results of the study derived identified that younger greatly prioritize to buy music
albums, CDs and others from retail outlets whereas senior citizens prefer to buy it from the
retail stores and live performance venues. However, the application of the statistical test, chi-
square identified that there is no significant difference between both the two data sets which
means that both the below and above 65 years purchasing and listening preferences do not
differ (Rutter, 2016).
(D) Statistical test
In order to determine the significant difference between the series, chi-square test is
founded as the best way to gain meaningful information from the large data set by examining
the goodness of fit between expected and actual data.
To: BOD of Tribute Ltd
From: Financial analysts
Date: 30th March 2017
From the analysis, it can be reported to the directors that internet plays a major role in
Tribute Ltd’s growth which is used to generate customer traffic by encouraging them through
using electronic media tools i.e. website, social-media (Facebook, Twitter etc.), Video-Sharing
(You-tube) and others. Evidencing from the UK music industry, 50% of the total income is
obtained in the form of digital sales which clearly shows the rising trends towards listening
music on internet and downloading as well. Moreover, it is reported to the managers to sale
Jonnie’s music albums and CDs through concert and retail stores so as to get higher sales and
greater return. At the end, statistical analysis of buying and listening preferences of people
below and beyond 65 years founded no significant difference.
CONCLUSIONS
The prepared report concluded that nostalgia marketing featuring the Hendrix music
albums and concerts in the current online marketing practices of Tribute Ltd will make an
effective contribution to generate millennial audiences at a greater sales and return. Moreover,
the report also founded that greater number of senior citizens prefer to buy music CDs from the
retail stores and venues at where live performance has been performed by Jonnie as it
accounted 42.43% and 39.57% of total profit. Besides this, the field observation test conducted
encountered that the observation in Brighton Mall and The Theatre were founded biased or
inappropriate that can be improved by the right selection of place and sample size as well. In
the end, the statistical tools analyzed that there is no significant different founded between
buying and listening performance of young at heart and senior citizens.
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REFERENCES
Books and Journals
Berman, E. and Wang, X., 2017. Essential statistics for public managers and policy analysts.
Cq Press.
Cloonan, M., 2016. Popular music and the state in the UK: culture, trade or industry?.
Routledge.
Dryden, I.L. and Mardia, K.V., 2016. Statistical Shape Analysis: With Applications in R. John
Wiley & Sons.
Hacking, I., 2016. Logic of statistical inference. Cambridge University Press.
Liberty, E., Lang, K. and Shmakov, K., 2016, June. Stratified sampling meets machine
learning. In International Conference on Machine Learning. pp. 2320-2329.
Polgar, C.A and et.al., 2014. Tree leaf out response to temperature: comparing field
observations, remote sensing, and a warming experiment. International journal of
biometeorology. 58(6). pp.1251-1257.
Rutter, P., 2016. The music industry handbook. Routledge.
Zheng, S. and et.al., 2016. The Relationship Between the Mean, Median and Mode with
Grouped Data.Communications in Statistics-Theory and Methods. 10(2). pp.16-39.
Online
UK Music industry. 2016. [Online]. Available through: < http://musically.com/2016/01/06/uk-
music-market-2015-bpi/>. [Accessed on 30th March 2017].
UK to the world. 2016. [Online]. Available through: <
http://www.thecreativeindustries.co.uk/industries/music/music-facts-and-figures/uk-
music-market-size-and-value>. [Accessed on 30th March 2017].
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APPENDICES
Appendix 1: Calculations of % of total CDs sold, estimated profits and % of total profits
Total
CDs % of total
Price of
CD
Estimated
profit
% of total
profit
Complimentary 130 2.72%
£
- -260 -0.75%
General 353 7.38%
£
10.00 2824 8.12%
Mail Order 167 3.49%
£
10.00 1336 3.84%
Web order 223 4.67%
£
10.00 1784 5.13%
Concert
performance 1376 28.79%
£
12.00 13760 39.57%
Retail 2459 51.44%
£
8.00 14754 42.43%
Brighton Pubs 72 1.51%
£
10.00 576 1.66%
4780 100% 60 34774 100%
Appendix 2 Field observations results
Brighton Mall The Theatre Combined results
Minutes
1 14 11 25
2 41 19 60
3 25 9 34
4 or more 24 13 37
Age 0
<15 0 2 2
16-30 4 0 4
31-45 16 0 16
46-60 17 9 26
61-75 64 41 105
76< 3 0 3
Gender 0
Female 65 30 95
Male 39 22 61
104 52 156
Appendix 3 Calculation of median ranking at Young at heart and seniors
Purchasing preferences
Young at heart Seniors Median ranking
Below 64 65 & above
Retail 1 2 1.5
Concert 3 2 2.5
Online 2 4 3.0
Mail 4 3 3.5
Phone 4 3.5 3.8
Listening preferences
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Cassette 5 3 4.0
CD 2 3 2.5
Live 4 3 3.5
Digital 3 5 4.0
Radio 2 2 2.0
Appendix 4 Determination of significant difference between younger and seniors
Purchasing
preferences
Young at heart Seniors
Median
ranking
Below 64
65 &
above
Retail 1 2 1.5 0.46
Concert 3 2 2.5
Online 2 4 3
Mail 4 3 3.5
Phone 4 3.5 3.75
Listening preferences
Cassette 5 3 4 0.59
CD 2 3 2.5
Live 4 3 3.5
Digital 3 5 4
Radio 2 2 2
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