Question 3: Wahei 

Wahei is one of emerging players in the area of wearable technology. Wahei is very active using marketing research analytics to further improve their growth opportunities. In the home market, China, they have been able to realize a substantial market share. They have decided to turn their attention to the wearables market in Europe. In the first stage they have decided to explore the European smartwatch market using perceptual mapping. The Wahei marketing analytics team has decided to prepare a biplot using four attributes: (1) trendy [Trendy], (2) sporty [Sporty], (3) value for money [Value], and (4) functional [Functional]. The Wahei marketing analytics team used social media monitoring to identify the 10 closest competitors:

(1) Apple Watch 2;

(2) Huawei Watch 2;

(3) Samsung Gear 3;

(4) Asus Zenwatch 3;

(5) LG Watch Sport;

(6) ZTE Qartz;

(7) Polar M600;

(8) Casio ProTrek Smart;

(9) Motoralo Moto Sport;

(10) Mont Blanc Summit.

The Wahei marketing analytics team prepared a biplot using the biplot extension in SPSS. The SPSS output for the biplot extension is included in Exhibit 9.

(a) Data was collected using an online survey tool with 523 respondents in Europe using a third-party Marketing Research Agency in France. The Wahei marketing analytics team obtained a biplot containing the smartwatch brands and the smartwatch attributes in one graphical representation (See Exhibit 9 for the SPSS output of the SPSS Biplot macro). Explain the underlying logic of the biplot, more in particular which approach is used to determine the coordinates for the smartwatch brands and smartwatch attributes. Moreover, interpret the SPSS output in Exhibit 9 and discuss the findings and implications for Wahei. Refer to specific elements in the output you have used to reach your conclusions. You may assume a significance level of 5% (α=0.05)

(b) The Wahei marketing analytics team has been instructed by Wahei top management to assist the design department with designing the new smartwatch for the European market. The key factors, or attributes, are: (1) display size [Display], (2) battery time [Battery], (3) Recharge time [Recharge], (4) price [Price] and (5) Phone utility [Phone]. The Wahei marketing analytics team set up a conjoint analysis using an orthogonal design for the following attributes and levels:

1) Display:

a) 30 mm

b) 35 mm

c) 40 mm

2) Battery time:

a) 24 hours

b) 48 hours

c) 72 hours

3) Recharge time:

a) 2 hours

b) 4 hours

c) 8 hours

4) Price:

a) € 199

b) € 249

c) € 299

5) Phone:

a) No

b) Yes

The orthogonal design consisted of 16 design cards and 6 holdout cards. Data was collected using an online survey tool with 154 respondents in the United States. The analysis was conducted with SPSS using the conjoint procedure by the Wahei marketing analytics team. The SPSS output is included in Exhibit 10. Explain the rationale for using an orthogonal design. What are the advantages and disadvantages of choosing an orthogonal design? Interpret the SPSS output in Exhibit 10 and discuss the findings and implications for Wahei. Refer to specific elements in the output you have used to reach your conclusions. You may assume a significance level of 5% (α=0.05) .