New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

QNT 561 WEEK 6 Business Research Methods, Part III.docx

by: Topseller Notetaker

QNT 561 WEEK 6 Business Research Methods, Part III.docx QNT561

Marketplace > Ashford University > Statistics > QNT561 > QNT 561 WEEK 6 Business Research Methods Part III docx
Topseller Notetaker
GPA 3.9

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

QNT 561 WEEK 6 Business Research Methods, Part III.docx
Probability and Statistics
Study Guide
50 ?




Popular in Probability and Statistics

Popular in Statistics

This 12 page Study Guide was uploaded by Topseller Notetaker on Thursday November 5, 2015. The Study Guide belongs to QNT561 at Ashford University taught by in Fall 2015. Since its upload, it has received 44 views. For similar materials see Probability and Statistics in Statistics at Ashford University.


Reviews for QNT 561 WEEK 6 Business Research Methods, Part III.docx


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 11/05/15
Running Head: Business Research Methods, Part III 1   Business Research Methods, Part III NAME QNT/561 ­ Applied Business Research and Statistics PROFESSOR DATE BUSINESS RESEARCH METHODS PART III 2                                                                            Business Research Methods, Part III Introduction Netflix is investigating expanding their movies on demand and DVD­by­mail business  model to include streaming premium channels currently available through cable and satellite  providers (Grover, 2010). To validate if this is a viable business expansion area for Netflix, this  research will analyze the market acceptance of the premium channel streaming offering. Are  customers willing to purchase this service and how much would they be willing to pay for this  service? Also, which premium channels are customers most interested in purchasing. The  research is focused to determine if the plan for Netflix is viable considering the myriad of media  products already established in the industry. Technology has finally advanced to the point where it is easy and convenient to stream  movies through the internet to a high definition television. This has opened the door for Netflix  to capture additional market share by diversifying programming and adding premium channels  that once belonged exclusively to cable providers. The research project is focusing on this  possibility by determining what percentage of Netflix subscribers would upgrade to stream  premium channels and what price points the market will bear. Statistical Analysis The following survey question will be presented in Likert Scale Summated Rating data  because the answer that is given will be either a positive or negative response about an object of  interest (Cooper & Schindler, 2006).  BUSINESS RESEARCH METHODS PART III 3                                                                            1) As a Netflix subscriber, how likely would you subscribe to premium channels (like HBO, Showtime, Starz, Cinemax).  o Very Likely (5) o Somewhat Likely (4) o Uncertain (3)  o Somewhat Unlikely (2) o Very Unlikely (1) The mode would be used to make a statistical analysis because the data provided are  nominal data. The mode for question number one is “Very Likely” because 30% of the 990  respondents of the survey would be very likely to add a premium channel to existing Netflix  service. Q­sorts would be used for the following survey question because the respondent is  indicating a specific point that he or she would pay for a product (Cooper & Schindler, 2006).  The respondents to the survey question can chose from $1 to $15. BUSINESS RESEARCH METHODS PART III 4                                                                            2) What is the maximum monthly price you would be willing to pay for premium channel  (like HBO, Showtime, Starz, Cinemax) subscription through Netflix? The mean, median, and mode would be used to make a statistical analysis because the  data provided are interval. Using these analyses, the mode is higher than the mean or median. The standard deviation is large compared to the mean, illustrating the data is highly dispersed around the mean. The most common responses to maximum price were $1, $2, $5, and $10  showing a tendency to select lower price points by respondents. Mean = $6.1394 Median = $5.00 Mode = $10.00 Standard Deviation = $4.2794 Multiple choice single response scale would be used for the following survey questions  because there are multiple options a person can chose from but only one answer is needed  (Cooper & Schindler, 2006). 3) Which premium channel would you be most interested in subscribing? BUSINESS RESEARCH METHODS PART III 5                                                                            o HBO o Cinemax o Showtime o Encore o Starz o Other The mode would be used to make a statistical analysis because the data provided are  nominal data. The mode for survey question number three is HBO. Fifty­three percent of the 990 respondents to the survey would prefer to add HBO to an existing Netflix subscription if  provided the option to add a premium channel.  The simple category scale would be used for the following three questions because there  are two mutually exclusive answers for the survey question (Cooper & Schindler, 2006). The  simple category scale is nominal information. 4) Are you currently a Netflix subscriber?     [ ] Yes     [ ] No BUSINESS RESEARCH METHODS PART III 6                                                                            The mode is used to make a statistical analysis because the data provided are nominal  information. The mode for survey question number four is “Yes,” meaning that of the 990  respondents to the question, 99% were Netflix customers. Because an overwhelming majority of  the respondents of the survey were Netflix customers the results of the survey would offer  Netflix valuable insight to what current customers feel about the company and potential new  product offerings. 5) If you are not currently a subscriber to Netflix, have you subscribed in the past?     [ ] Yes     [ ] No     [ ] Does Not Apply BUSINESS RESEARCH METHODS PART III 7                                                                            The data provided for the survey question are nominal; therefore, mode is again used to  make a statistical analysis. The mode for survey question number five is “Does Not Apply,”  meaning that 99% of the sampled population is currently a subscriber to Netflix. Thus, the  question is not relevant to the respondent. 6) Would the availability of premium streaming channels (like HBO, Showtime, Cinemax or  Starz) be a reason for you to subscribe to Netflix?     [ ] Yes     [ ] No BUSINESS RESEARCH METHODS PART III 8                                                                            The mode would be used to make a statistical analysis because the data provided are  nominal information. The mode for survey question number six is “Yes,” meaning of the 990  respondents of the survey 84% would subscribe to Netflix if the choice to watch premium  channels was offered if not already a customer. Potential Challenges to Validity and Reliability Potential challenges to the validity (the extent to which a test measures what we actually  wish to measure, Cooper & Schindler, 2006) are unclear questions, inappropriate response  options and inappropriate length. All of which were taken into consideration while conducting  the survey. The simplicity and clarity of the survey is illustrated by the way the questions were  formulated. These questions were direct, easy to understand and the responses provide data that  is easy to interpret for the purpose of measuring the potential buying behavior for new products  offered by Netflix.  In addition to providing a valid and non­biased survey, reliability (the  accuracy and precision of a measurement procedure, Cooper & Schindler, 2006) was insured by  reducing ambiguity in the response types. Several of the response types fit into the forced  BUSINESS RESEARCH METHODS PART III 9                                                                            category to establish unified answers among respondents. Although some of the answers were  forced into either yes or no, there was a “Does Not Apply” option.  Response types for two of the questions involve “Yes or No,” for one of the questions,  ”Does Not Apply” was offered because of the need for this option. One question had five  response scales to allow a specific program choice. The price question allowed for fifteen  options to narrow down the exact median price customers would be willing to pay. The last  question offered six scale points. When scaling was used, the response options were balanced  with five alternatives within a range from fully negative, to fully positive options to ensure  adequate opportunity for truthful responses.  In order to achieve practicality (concerned with a wide range of factors of economy,  convenience, and interpretability) (Cooper & Schindler, 2006), questions were formulated in as  simple language to avoid uncertainty. The total number of survey questions was also limited to  avoid ambiguous responses due to survey fatigue. Using Facebook as a venue for receiving  survey responses provided an additional step to ensure the appropriate audience was contacted  for the convenience sampling. Respondents who are able to access a computer and use Facebook  are more likely to be customers of an online television and movie programming service.  Online social networking services are a great way to obtain educated participants in  which to survey. Another factor of using the Internet to contact potential customers is the social  networking aspect. Simply by offering the survey using Facebook provides the opportunity for  users to forward the survey to friends and family and post the survey on their pages. This  provides for a random element to be incorporated into the survey. Moreover, using technology  BUSINESS RESEARCH METHODS PART III 10                                                                          for convenience sampling provides an added benefit over taking the survey in a “brick and  mortar” environment. Classify Findings in NOIR Scales The survey includes data on all scales except for the interval scale.  The majority of  questions are nominal scale, which numeric values are used to classify the data for labeling  purposes.  The questions using the nominal data scale are:  Which premium channel would you be most interested in subscribing?  Are you currently a Netflix subscriber?  If you are not currently a subscriber to Netflix, have you subscribed in the past?  Would the availability of premium streaming channels (like HBO, Showtime, Cinemax or  Starz) be a reason for you to subscribe to Netflix?  If you have quit your subscription to Netflix, what was the reason for leaving? There is one question that uses the ordinal data scale where the responses will be ranked  by increasing desire of the respondent. This scale shows degree of preference, but there is no  specific increment by which the data increase is represented. The question with ordinal data for  response is:  As a Netflix subscriber, how likely would you subscribe to premium channels (like HBO, Showtime, Starz, Cinemax) There is one question that uses the ratio scale as it relates to the amount the respondent is  willing to pay. The ratio data represents real dollars and can have an absolute zero data point.  The question utilizing ratio data is:  What is the maximum monthly price you would be willing to pay for premium channel  (like HBO, Showtime, Starz, Cinemax) subscription through Netflix? BUSINESS RESEARCH METHODS PART III 11                                                                          Conclusion The results from this sample demonstrate a viable market opportunity for Netflix or their  competitors to pursue premium channel streaming. The sample of convenience has validated the  interest in this subject by respondents and the usefulness of the survey questions for this  audience. From the results of this study, it is recommended that Netflix now move to analyze the  business case and ROI for this product.  By looking at the price points of $5 and $10 monthly subscription fees that many  respondents are willing to pay, Netflix can analyze their royalty and infrastructure costs to  deploy premium channel streaming. Based on the respondents interested in these offerings,  Netflix can forecast total revenues from their customer base to analyze potential profitability  with this offering. BUSINESS RESEARCH METHODS PART III 12                                                                          References Cooper, D.R. & Schindler, P.S. (2006). Business research methods (9th ed.). Boston: McGraw­ Hill/Irwin. Retrieved from University of Phoenix, QNT561 – Applied Business Research  & Statistics Website. Grover, R. (2010). Netflix: Premium Cable's Worst Nightmare. Bloomberg Businessweek.  Retrieved from­ bloomberg_businessweek/


Buy Material

Are you sure you want to buy this material for

50 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Allison Fischer University of Alabama

"I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over $600 per month. I LOVE StudySoup!"

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.