The Research Design Used by Donatos for New Product Development
Donatos is a well-known pizza chain that has been in business for over 50 years. However, in 2018, the company faced challenges regarding product development. Their customer base demanded something new and different from their pizza, which led to Donato’s developing a new product. The research design for this new product was extensive and involved different stages to ensure success.
The first stage was the exploratory one, where the company conducted research to identify the needs and wants of its target market. This was done through Wassup meetings with customers, where they discussed their preferences and opinions. As Lin et al. (2019) noted, social media is increasingly important in shaping consumer attitudes and purchase intentions. In the case of Donato’s, Wassup meetings allowed the company to interact face-to-face with its target audience.
The second stage was the descriptive stage, where the company developed a detailed description of the new product. This involved creating and testing a prototype with the target audience to ensure the product met their expectations. This stage allowed the company to determine the feasibility and viability of the new product.
The final stage was the causal one, where the company implemented the new product in their stores and evaluated its performance. The company used different metrics such as sales data, customer feedback, and social media engagement to measure the success of the new product. The research design effectively identified the target market’s needs, developed a product that meets their preferences, and evaluated its success.
Evaluation of the Wassup Meetings as an Exploratory Methodology
Wassup meetings were used by Donatos to better understand the needs and desires of the target market. They were conducted with consumers to discuss their preferences and opinions regarding pizza. This practice allows the introduction of principles of corporate social responsibility, which positively impacts employees and leads to work efficiency (Kim & Keane, 2023). The open-ended meetings allowed customers to express their thoughts freely, and the company could gain insights, which could help them develop a product that meets their expectations.
Donato used Wassup meetings to make sense of the customer’s needs and wants. Using Wassup meetings aligns with Kim and Keane’s (2023) definition of social responsibility. According to the authors, it is achieving the ultimate goals of an organization in the economic, social, and other fields. The open-ended nature of these meetings allowed the company to develop plausible images of what its customers wanted. While Wassup meetings are an excellent way to gain insights into customer preferences, the company could have also leveraged social media to gather more insights. Social media can provide a wealth of information on customer preferences and opinions.
In conclusion, Wassup meetings were an effective exploratory methodology used by Donato’s to recognize the desires and requirements of their intended audience. The flexible structure of these meetings enabled the company to create realistic representations of its customers’ preferences, which helped them rationalize the development of a new product. However, the company could have additionally utilized social media to gain deeper insights.
The Test Market Donatos Used: Advantages and Disadvantages
Donatos Pizza developed a test market to evaluate the viability of its new pizza. This market was established in 1963 in Columbus, Ohio, USA, to gather feedback from potential customers and make necessary changes before launching the product on a larger scale. According to Lee et al. (2021), brand equity plays a vital role in the success of franchise chains. A company’s brand equity provides a competitive advantage and enhances customer loyalty. Donatos’ test market allowed them to establish brand equity and assess consumer demand for their product. This strategy also helped the company identify shortcomings that must be addressed before launching the product on a larger scale.
However, one disadvantage of a test market is that it can be expensive and time-consuming, as it involves creating and promoting a product in a limited market. Additionally, there is always the risk that a test market will not represent the larger market. In this case, it is unclear how Donatos selected the test market location and whether it was indeed representative of the target market. These limitations should be considered when deciding whether to use a test market approach.
In conclusion, Donatos’ test market was a valuable strategy to gather feedback on their new pizza and establish brand equity. However, the limitations of this approach must be carefully weighed against the potential benefits. Companies looking to develop new products should consider a range of strategies and select the one that best fits their unique needs and goals.
Measurement Scales for the In-Restaurant Product Tests
In order to measure customer feedback on the new pizza during in-restaurant product tests, a survey was used. To effectively measure this feedback, appropriate measurement scales would have been necessary. According to Liu et al. (2020), social media marketing significantly impacts brand loyalty and is mediated by brand love. While this citation is not directly related to measurement scales, it emphasizes the importance of understanding customer perceptions and attitudes towards a brand, which can be measured using Likert scales.
Likert scales are commonly used in surveys to measure respondents’ opinions and represent the degree of consent or disagreement between 1 and 5. They allow respondents to choose from various options to indicate their agreement or disagreement with a statement. In this case, Donatos could have used a Likert scale to measure customer satisfaction with the new pizza and identify areas for improvement.
In conclusion, appropriate measurement scales are essential to gather accurate and meaningful data from surveys. Likert scales provide a reliable and valid way to measure the attitudes and opinions of respondents and would have been an effective tool to measure customer feedback during in-restaurant product tests for the new pizza.
References
Kim, J. Y., & Keane, A. (2023). Corporate social responsibility and performance in the workplace: a meta-analysis. International Journal for Educational and Vocational Guidance. Web.
Lee, S. M., Kim, S. Y., Yoo, S., & Song, T. H. (2021). The cross-buying effect in a multi-vendor loyalty program in Korea. Asian Business & Management, 20(3), 339–369. Web.
Lin, P. M. C., Peng, K.-L., Ren, L., & Lin, C.-W. (2019). Hospitality co-creation with mobility-impaired people. International Journal of Hospitality Management, 77, 492–503. Web.
Liu, C.-H., & Jiang, J.-F. (2020). Assessing the moderating roles of brand equity, intellectual capital, and social capital in Chinese luxury hotels. Journal of Hospitality and Tourism Management, 43, 139–148. Web.
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