December, 2013 Natalie Clore Chelsea Goodale Isaac Spence Are - - PowerPoint PPT Presentation

December, 2013 Natalie Clore Chelsea Goodale Isaac Spence

Are Hillsdale College students a profitable market segment for local jewelry retailers?

· Define the level of demand · Establish appropriate communication channels · Determine students’ purchasing preferences

· Current industry trends · Demand for gold · Men’s jewelry market · Target market · Shopping habits · Small-town customers

· Questionnaire via SurveyMonkey.com · Sample size of 1,504 students · Sampling error of 6.08% (95% confidence interval)

· Some surveys only partially complete · Non-response rate 70% · Roughly 40% of responses eliminated · Minimal experience purchasing fine jewelry

· Total of 455 received · Screening eliminated 195 ineligible · Results reflect 260 responses

72.5% 27.5%

0% 10% 20% 30% 40% 50% 60% 70% 80%

No Yes

Have you purchased fine jewelry?

25.2% 4.0% 0.7% 70.2%

0% 10% 20% 30% 40% 50% 60% 70% 80%

1-2 Purchases 3-4 Purchases 5-6 Purchases I do not purchase fine jewelry

How many times have you purchased fine jewelry?

44.5% 9.5% 2.4% 0.7% 43.0%

0% 10% 20% 30% 40% 50% 1-2 Purchases 3-4 Purchases 5-6 Purchases 7+ purchases I do not purchase fine jewelry

How many fine jewelry purchases do you anticipate making?

42.1% 79.9% 2.7% 4.2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Online In Person Do not intend to purchase Other

Where are you most likely to shop for fine jewelry?

26.3% 21.2% 18.5% 14.3% 10.8% 5.0%

0% 5% 10% 15% 20% 25% 30%

Department Stores Specialty Jewelers Online Local Retailer Resale Shops Wal-Mart

Which of the following stores have you previously purchased fine jewelry from?

26.3% 3.9% 21.2% 10.8% 1.5% 15.4%

0% 5% 10% 15% 20% 25% 30%

Department Stores Specialty Jewelers Online Local Retailer Resale Shops Wal-Mart

Of the previous stores, please select any stores you are likely to repurchase from.

12.7% 76.1% 3.9% 74.9% 7.3% 3.5%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Social Media Online Television Word of Mouth Other Will not seek information

Where are you most likely to seek information about fine jewelry?

76.8% 66.8% 30.5% 27.8% 18.1% 10.8% 7.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Word of Mouth Online Social Media Television Radio Newspaper Smartphone Advertisement

How are you most likely to hear about fine jewelry?

47.2% 38.5% 14.3%

0% 10% 20% 30% 40% 50%

Myself Others I do not purchase fine jewelry

Do you primarily purchase jewelry for yourself or for others?

43.0% 10.0% 12.7% 16.7% 17.5%

0% 10% 20% 30% 40% 50%

Winter Spring Summer Fall I am unlikely to purchase

What time of year are you most likely to purchase fine jewelry?

63.7% 55.2% 34.0% 31.3% 22.0% 14.7% 14.7% 0.8% 0% 10% 20% 30% 40% 50% 60% 70%

Christmas Birthday Wedding or Engagement Mother's Day Graduation Valentine's Day Anniversary Father's Day

For which of the following special occasions are you most likely to purchase fine jewelry?

56.2% 19.5% 8.4% 3.2% 4.4% 8.4% 0% 10% 20% 30% 40% 50% 60%

$1-$200 $201-$400 $401-$600 $601-$800 $801-$1000 Unlike to spend

While at Hillsdale College, what is the total amount you anticipate spending on fine jewelry?

Variable Average

Standard Deviation Minimum Maximum Sample Size

I look at fine jewelry items in stores before buying them online. 2.8

1.6 1 6 235

I look at fine jewelry items online before buying them in stores. 3.0

1.5 1 6 239

If I buy jewelry, it is usually costume jewelry. 3.0

1.5 1 6 239

After graduation, I would like to buy Hillsdale College jewelry items. 3.3

1.3 1 6 239

I would like to buy Hillsdale College related jewelry items. 3.4

1.3 1 6 240

I use business “wish lists”. 3.6

1.5 1 6 239

I like monthly updates from stores on new product selections. 3.9

1.3 1 6 238

Please address the following statements based on your level of agreement.

Strongly Agree (1) to Strongly Disagree (5)

Variable Average

Standard Deviation Minimum Maximum Sample Size

Price 1.5

0.9 1 6 234

Store Reputation 1.7

0.9 1 6 234

Items on sale 1.7

1.0 1 6 233

Variety of options within each category 1.9

1.0 1 6 234

Variety of item categories 2.1

1.1 1 6 231

Store atmosphere 2.2

1.1 1 6 232

Close retail store proximity 2.3

1.1 1 6 235

Customization options 2.5

1.2 1 6 233

Please address the following statements based on your level of agreement.

Very Important (1) to Very Unimportant (5)

74.9% 25.1%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Female Male

Please select your sex.

19.6% 23.5% 23.0% 28.3% 4.3% 1.3% 0% 5% 10% 15% 20% 25% 30%

Freshmen Sophomore Junior Senior Senior 5+ years Graduate

Which of the following best describes your student status?

18.0% 9.0% 21.0% 32.0%

0% 5% 10% 15% 20% 25% 30% 35%

Freshmen Sophomore Junior Senior

Respondents who have previously shopped online

6.0% 10.0% 29.0% 45.0%

0% 10% 20% 30% 40% 50%

Freshmen Sophomore Junior Senior

Respondents who have previously shopped at local jewelry retailers

17% 21% 24% 31% 28% 31% 19% 22% 27% 45% 18% 9%

0% 10% 20% 30% 40% 50% Freshmen Sophomore Junior Senior

Is there a relationship between class standing and anticipated purchases?

1-2 Purchases 3-4 Purchases 5-6 Purchases

97% 24%

3% 76%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Will not purchase Online in the future Will purchase Online in the future

Does purchasing from an Online Retailer in the past effect a student’s chances of purchasing from an Online Retailer in the future?

Have not previously purchased Online Have previously purchased Online

80% 56%

20% 44%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Will not purchase at Deparment Store in the future Will purchase at Deparment Store in the future

Does purchasing from a Department Store in the past effect a student’s chances of purchasing from a Department Store in the future?

Have not previously purchased at Department Store Have previously purchased at Department Store

84% 50%

16% 50%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Will not seek information Online Will seek information Online

Does seeking information online effect a student’s chances of purchasing from an Online Retailer in the future?

Will not shop Online Will shop Online

31% 16%

69% 84%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Will not seek information by Word of Mouth Will seek information by Word of Mouth

Does seeking information by word of mouth effect a student’s chances of purchasing from an Local Jewelry Retailer in the future?

Will not shop at Local Retailer Will shop at Local Retailer

16% 28% 47% 38% 82% 84% 72% 53% 63% 18%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

$1-$200 $201-$400 $401-$600 $601-$800 $801-$1000

Is there a relationship between sex and anticipated spending?

Male Female

40% 16% 5% 9% 44% 8% 16% 20%

0% 10% 20% 30% 40% 50%

Winter Spring Summer Fall

Is there a seasonal effect on men or women’s fine jewelry purchasing?

Male Female

12% 62%

60% 29%

0% 10% 20% 30% 40% 50% 60% 70% Myself Others

Who is the primary recipient for men and women’s fine jewelry purchases?

Male Female

14% 16% 21% 40% 54% 86% 84% 79% 60% 46%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Mother's Day Birthday Christmas Wedding or Engagement Valentine's Day

Is there a relationship between sex and special

• ccasion purchases?

Male Female

3.6 3.9 3.7 3.3 3.2 3.3 2.6 2.6 1 2 3 4 5 After graduation, I would like to buy Hillsdale College jewelry items. I would like to buy Hilsdale College jewelry items. If I buy jewelry, it is usually costume. I look at fine jewelry items in stores before buying them online.

Is there a difference between men and women's shopping preferences?

Female Male

Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree Neither Agree nor Disagree

2.2 2.6 2.1 1.8 1.8 2.1 1.5 1.3 1 2 3 4 5 Variety of options within each category Close retail proximity Items on sale Price

Is there a difference between men and women's product preferences?

Female Male

Very Important Somewhat Important Somewhat Unimportant Very Unimportant Neither Important nor Unimportant

2 1.5 1 2 3 4 5

Store Atmosphere Store Reputation

Which aspects do students who purchase from Department Stores value the most?

Very Important Somewhat Important Somewhat Unimportant Very Unimportant Neither Important nor Unimportant

2 1.5 1.5 1 2 3 4 5

Store Atmosphere Store Reputation Variety of item categories

Which aspects do students who purchase from Specialty Jewelry Retailers value the most?

Very Important Somewhat Important Somewhat Unimportant Very Unimportant Neither Important nor Unimportant

2.3 1 2 3 4 5

Customization options

Which aspects do students who purchase from Local Jewelry Purchases value the most?

Very Important Somewhat Important Somewhat Unimportant Very Unimportant Neither Important nor Unimportant

· While few students have previously purchased, over half indicate they will purchase in the near future · Students anticipate making no more than 2 purchases · Students prefer to seek information from online or word of mouth sources · Local jewelry store shoppers strongly value customization options · Students are highly price sensitive and find it important to have a variety

• f product options within their price range

· Most jewelry purchases are likely to occur during winter months

· Seasonal

· Winter

· Price Range

· $0-$200

· Communication

· Web based · Word of mouth

· Shopping Experience and Product Aspects

· Competitive Pricing · Sales Items · Store Atmosphere · Customization · Do not focus on Hillsdale College related items

Questions