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Final Report To Be Complied

Is there a correlation in movie selection (DV) based on kiosk location (IV)? Wonderfulsville Research Development Group (WRDG) intends to research this question; providing evidence to support or defy the claim that there is a correlation. WRDG will lay out a plan on how to measure both variables, how many kiosk locations will be studied, and how many DVD selections will be in play. Team members have developed individual sampling and data collection plans. They have come together and collaborated as a group noting the strengths, weaknesses, and differences of each member’s plan. The intent is to form a WRDG strategy on sampling and collecting research data for Blue Rectangle. An important part of that plan is ensuring the validity and reliability of the data as well as protection of the patrons personal identifiable information (PII).

Location

Several factors come into play when researching the independent variable of WRDG’s research question. Provided below is information on local demographics and hypothesis supporting data.

Blue Rectangle Statistics

Blue Rectangle has 42,000 kiosks nationwide and rents 1.2 million movies per day (“Statistic Brain”, 2013). There is a good chance that locations play some part in how successful Blue Rectangle is, beside the fact that the rentals are only a dollar a movie. When WRDG looks at the psychographic statistics the team can see the breakdown of the views by age and viewing behavior (see image 1), with the geographic (see image 2) and demographics statistics of household, education, age, and income level (see image 3) (Mishra, 2012). The team can begin to see a narrower view of the targeted audience. With this information, selecting locations with the highest percentages of viewers would be the most logical approach to maximize viewing audiences and maximizing sales.

Blue RectangleImage 1

Image 2

Hypothesis Support

To support the hypothesis of location being a factor, Moore provided a study on the ability to attain movies with ease and how access to movies will increase viewing. The challenge of providing movies at the consumer’s fingertips supports the need to provide videos where consumers want them. According to Moore, “there is no money in rentals unless talking about the boxes outside of drugstores” (Moore, 2014, p. 138). To increase viewing the consumer must be able to get what he or she wants easily. Blue Rectangle also allows the renter to return any movie to any location, it does not have to be returned to the rented location; however most are returned to the same location that it is rented from due to the proximity of the renters address ("Do I Have To Return My Movie Or Video Game To The Same Box I Rented It From?", 2014). As shown above in the graphics distance and movie selections are the biggest reasons that patrons chose a particular rental location.

Selection

Location and convenience are vital in determining the balance of what to offer at each location (Kowplowitz, 2012). It is noted that the renter’s race and gender do have an effect on movie selection when it comes to choosing between comedies, drama, action, or horror (Olivia, 2013). WRDG has chosen not to research race or gender as a variable in this study (Web.calstatela.edu, 2015). Both of the Blue Rectangle kiosks in Wonderfulsville offer 31 new releases as well as other popular movie titles. The dependent variable of movie selection is investigated below.

Reasons for Selection

Movie selection in general is based on several determinates to include the release date and number of famous actors in the film (Terry & De’ Armond, 2008). Another factor in movie selection is the number of selections available to choose from at each location (“BigBox DVD Movie Rental Service Available in Twin Cities”, 2010). For those patrons unsure of what movie to rent, both of Blue Rectangle’s studied locations have trailers on the kiosks of each movie available (Thompson, 1999).

Hypothesis Support

In the case of a Redbox rental, the mix of movies can be determined based on “similarly performing titles at the location” (Vander Schee, et. al, 2012, p. 142). The opportunity for increasing customer rentals will be affected by those selection options, as mentioned above. A study of Redbox has proven that the capacity of DVD options will increase customer base. The need was to “increase DVD capacity” at all locations (Flextronics, 2012). Increasing the capacity has led to kiosk rental success. Creating machines in close proximity to need, capacity to provide choices, and providing rentals with speed has increased the consumer base.

The Population

The population that WRDG is studying is individuals that frequent the two CVS locations that have Blue Rectangle kiosks in town. According to the text, a population is a set of units of interest to a study, and the sample is a subset of that population (McClave, Benson, & Sincich, 2010). The sample in this study is those individuals that rent movies from one of those two kiosk locations. The target population is those that rent movies from most often from these two locations. The reason those individuals were selected is because of a simple random sampling, and will be discussed in the next paragraph.

Kiosk Survey

WRDG has decided to use the CVS Drug Store kiosk locations on Hwy 10 and the Shackleford location in Wonderfulsfville as the sample locations (DiOrio). WRDG will develop a five to ten question survey (Russell & Airasian). The survey will pop up on the kiosk screen once the rented movie is scanned to be returned to the box. Completing the survey is optional, but a discount is granted on the next movie rental if the survey is completed. WRDG will then sample a multiple of ten, depending on the number of surveys completed. Approximately 400 surveys are needed to have a large enough sample.

Sampling Methods

To collect the data the kiosks maintain electronic records of addresses for renters to determine distance, the type of movie selected, and the options searched. Each person returning a rental at the kiosk will be asked to answer a brief survey with the questions of visiting alternate locations, choosing alternate movies, importance of proximity, frequency of visits, and number of rental locations visited. Sampling for this study will be done through data mining. Since both kiosks are internet connected computers with a great deal of memory available for each system, WRDG feels this to our advantage. Using data mining will allow WRDG to identify previously unknown or useful information from the data that may have not been found through the use of surveys or observations (Tan, Steinbach, & Kumar, 2004). Simple random sampling will be used to help eliminate bias while conducting the research.

Strengths

The strength of the electronic data is the ability to store large amounts of information. The electronic surveys are quick and the options to return what choices are searched for are easy. The time range can be changed if there are events that could increase rentals. Another strength is that the surveys are not administered by an individual to sway results but are just the exact responses from the participants. Offering a discount for completing the survey at the kiosk when returning a rental, ensures there is a greater chance of obtaining a large number of completed surveys.

Weakness

Weaknesses are the ability to have participants respond to the survey. Although the survey takes less than a minute to complete, it could be considered a hassle by an individual that is running late or a parent that has kids with him or her. For a valid sample the sample size must be fairly large, however the option to respond is easily skipped. If not enough surveys are answered the ability to draw a large sample is compromised.

Validity and Reliability

Validity and reliability of data is very crucial in every survey, as validity determines how a survey study is able to scientifically answer the research questions of interest, while reliability determines the level of consistency in the findings of the research study (Moore & McCabe, 2006).

Validity

In order to enhance the validity of acquired data, the data collected will be precisely evaluated in terms of number of clients who lease each type of movie in the two locations identified for the survey study. This will help determine whether there is any correlation between the location of a DVD outlet kiosk and the number of clients that the outlet serves.

Reliability

To enhance reliability, the data will be closely evaluated and all outliers excluded in data analysis. Use of a sample size that corresponds to the desired significance level computed through the formula n = ( z2 * σ2 ) / ME2 will help acquire consistent results that are also reproducible if the survey is conducted under similar conditions.

Collection and Protection

The data that is collected and used will not be published with names or addresses of the samples. The distance from the kiosk may be used but names and address will remain anonymous. Data from both kiosk locations will be transferred to WRDG from the Blue Rectangle regional manager. This information will be sent to the WRDG technology department, which will be ran through the company’s state of the art main frame computer system. This system will draw from other connected resources such as database systems that use machine learning, pattern recognition, statistics, and artificial intelligence (Tan, Steinbach, & Kumar, 2004). Once research for this project is complete, all data and pertaining documents will be turned back over to the Blue Rectangle regional manager. WRDG will not store any of the patrons PII.

Conclusion

WRDG has provided a sampling strategy on how the team plans to measure both variables. The kiosk locations that are to be studied are listed and the 31 new releases that are to be studied in the research are mentioned. Evidence that supports the hypothesis that there is a correlation in movie selection (DV) based on kiosk location (IV) has been found. Although the team had different ideas on an approach to the collection and sampling of data, the team has collaborated to form a sampling and data collection plan, noting the strengths and weaknesses of this plan. To protect both WRDG’s reputation and Blue Rectangle patrons, the team will ensure the validity and reliability of the data as well as maintaining a strict protection of the individual renters PII.

References

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Vander Schee, B. A., Aurand, T. W., Iacovelli, J., Jednoroz, J., Bergren, J., Keller, L., & Taylor, M. (Fall 2012). Direct marketing and distribution: The case of Redbox. Journal of the Academy of Business Education, 13(1), 137-149.

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