Virgin Galactic, Market Reseach on Price Essay

Custom Student Mr. Teacher ENG 1001-04 9 April 2016

Virgin Galactic, Market Reseach on Price

1. Introduction
“The Earth is the cradle of humanity, but mankind cannot stay in the cradle
forever. Great scientist Konstantin Tsiolkovsky already in the 19th century saw space as a place that has a potential for the future innovations. What at that time was a fantasy today is a business of Virgin Galactic established by Richard Branson. Space does not leave people indifferent. Children dream to become astronauts, some of us believe that stars can tell our future and others wonder whether there are other forms of life.

Entrepreneur Richard Branson has observed the passion of people to explore space and took it as an opportunity to open up a business in the space tourism. Branson seeks to make space available not only to the scientist or astronauts, but also to the ordinary people. Virgin Galactic is the first company that offers a unique adventure holiday with Spaceship Two. It gives you a chance to stay in the space for 15 minutes, 70 miles above Earth. The Space tourist experiences the extraordinary feeling of no gravity and can view the darkness of space in which the curvature of Earth is seen.

Space travel is an absolutely new branch in the tourism industry. Therefore, Virgin Galactic needs a thorough research in order to meet consumers demand and be profitable. The obstacles that Space Marketing research team is facing are price factors. First task of the research team is to estimate the price that people expect to pay. The next task is to identify the consumers that are willing to pay target price. Lastly, the effect on price has to be foreseen if some unpredicted incident occurs. To address obstacles that Virgin Galactic is facing, two different research approaches are used by Team A and John Doe.

This paper compares Team’s A and John Doe’s research approaches. It provides interpretation and summarizes the results of the original John Doe questionnaire. Moreover, it establishes Team’s A recommendations to Virgin Galactic of how it can deal with the problems regarding analysis of the independent variables. As a final point, this paper provides suggestions of how to improve the study with additional resources.

http://inventors.about.com/library/inventors/blrocketTsiolkovsky.htm

2. Research Design
2.1 Setup of Team A´s Research Design
As mentioned in the introduction of the research report two research designs are taken in consideration. This section deals with the research design, developed by team A, and the reasoning behind it. “What price should be charged for our space trip in order to maximize profit for the company?” Nowadays, every firm focuses on this kind of management problem to be successful and competitive in a market.

The main focus lies on determining the price that maximizes profit for the firm. In order to find meaningful solutions to this problem it is important to make up a research design that has a clear structure. The construction has to fulfill certain requirements. First of all, the problem statement has to provide valuable information to solve the overall management problem. Second, the research questions have to be constructed in a way that they contribute value to the problem statement, and finally the answers to the questionnaire questions should provide information to answer the research questions. Accordingly, each part of the chain contributes value to solve the overall management problem step by step.

However, it is not advisable to focus solely on price determination within the problem statement in order to find solutions to the management problem. To solve the problem of determining the profit maximizing price it is crucial to make use of other factors such as consumer related factors or product related factors. On the basis of these thoughts Team A made up a problem statement in the research design.

It helps to find general factors that influence consumer’s willingness to pay for the space trip. In order to answer their management problem those factors provide expressive information to Virgin Galactic. Due to this reasoning, Team A designed the following problem statement: “What specific consumer factors influence the price people are willing to pay for the Virgin Galactic Space trip?” Related research questions are set up in order to make considerable findings to this problem statement.

Those nine research questions can be divided in two parts: First, there is a set of questions that cover the consumer characteristics as gender, nationality, income and field of interest. Having this information about the consumer helps us to identify the target group of the product and therefore to solve the management problem later on. It already can give Virgin Galactic ´s board of management a broad indication how to set prices for different consumer groups. Additionally, it can help to decide whether there is possibility for price discrimination.

These consumer characteristics are rather basic information about the individual consumer that helps Virgin Galactic to group the customers. The second part of the research questions focuses on unobservable characteristics as habits and preferences of consumers. Accordingly, that type of questions gives a more precise insight about certain consumer characteristics. It is possible to elaborate on effects on customer´s willingness to pay for the space trip. The questions cover the influence of time spent in zero gravity phase, the importance of an insurance, the risk attitude of an individual person, the economic situation as well as the importance of a safety guarantee on consumer´s willingness to pay.

All these characteristics help to find answers to the problem statement and therefore contribute value to solve the management problem. To Virgin Galactic´s management team the following three questions where important: 1)What price do people expect for a space trip? 2)Who is willing to pay our target price? 3)What would happen with the perception of our price with consumers if some unforseen incident occurs? In the research design of team A two of these three topics are covered. The majority of the questions ask if consumers are willing to pay the target price given several characteristics and factors and therefore answer the second problem.

The question field about demographic information and their spending behaviours give insights to consumer´s willingness to pay the target price. By analysing the results of the questionnaire it is possible to see the range of people that are willing to pay the target price for the space trip ticket. Moreover, the price for each different consumer group can be examined. Problem three is covered by the questions concerning the economic situation, the importance of an insurance, the effect of competition on the willingness to pay as well as consumer´s attitude towards risk.

Problem one, on the other hand, is not covered sufficiently. There is no research question related to consumer´s price expectations for a space trip. The next part compares John Doe´s research design and the one of team A on a critical basis.

2.2 Critical Comparison of Research Designs
This section deals with a comparison of the research design, constructed by John Doe and the one of Team A. The crucial point where the designs differ
is the problem statement. Consequently, the research questions and questionnaire questions are not the same. Nevertheless, why do the problem statements differ? To answer this question it is necessary to have a closer look at John Doe´s problem statement: “What price-related characteristics influence customers to buy our product?” It becomes obvious that Doe solely focuses on price-related characteristics that influence consumers in purchasing the product, whereas Team A takes a broader set of characteristics in consideration which include price-related characteristics as well as general consumer factors that determine people´s willingness to pay. (See team A’s problem statement in 2.1)

The main inadequacy with Doe´s problem statement is that it unintentionally does not consider important features that could influence consumer´s willingness to pay. Demographic characteristics as gender and nationality are not necessarily price-related factors, but they might have an impact on people´s willingness to pay.

Therefore, it is crucial to take them into account. Because of Doe´s imprecise formulation of the problem statement Team A constructed a new statement that includes consumer characteristics as well as price-related characteristics to find more accurate solutions to the overall management statement. The comparison of the research questions between John Doe and team A is as follows: Both research designs cover demographic consumer characteristics such as gender, nationality and income level. In order to group consumers John Doe covered the valuable aspect of profession.

In contrast, Team A refers to the field of interest, which helps to approach its target group from a more personal side. The interesting aspect of a correlation between age and willingness to pay is not covered in both of the research designs and therefore both of them have space for improvement on this aspect. Furthermore, as mentioned above team A didn´t address the important question “What price do people expect for a space trip?”.

John Doe on the other hand refered to this question by asking for a relationship between a certain characteristic related to the amount customers are willing to pay for a space trip. To continue, John Doe´s approach is more precise by defining the factor risk, namely “fatal accidents”. Team A, on the other hand, relates the factor of risk to the willingness to pay with questions like: “To which extend does safety influence your willingness to pay?” “Does your attitude towards risk influence the willingness to pay?”

“How does the willingness to pay depend on the presence of insurance?” John Doe is rather direct in determining the term risk as the possibility that a fatal accident occurs and how it affects consumer´s willingness to pay. The answer to this question should be clear without running a test on it. All the money in the world does not help you when you are dead. Hence, this research question of Doe is not interesting at all, if one knows the answer intuatively.

Hence, it is more interesting to find the correlation of consumer´s risk related characteristics to their willingness to pay for the space trip. Here, Team A´s research design clearly has a better approach to help Virgin Galactic solving the management problem. Comparing both research designs, some more weaknesses in John Doe´s version become obvious: First of all, the research question “Is the proportion of people that is willing to pay $200,000 equal to 5%?” seems to be suboptimal. Analyzing this question the only possibility of giving a positive answer if, and only if the proportion is exactly 5%. But what if the proportion differs by let´s say 0.1%?

Then the answer to this question is “No” and this information clearly does not help Virgin Galactic to solve the management problem. Therefore, it is adviseable to give this question a direction by asking “Is the proportion of people that is willng to pay $200,000 smaller or equal to 5%?”, for example. Furthermore, the questionnaire question regarding the income level is not optimal. First of all, there is no indication which currency is referred to and secondly, the grouping of answer possibilities is very vague. An improvement would be to ask the respondents to indicate their income independently. Doing so, makes it easier to analyze the results afterwards.

An accurate grouping of different income levels might lead to a more precise outcome. Furthermore, John Doe is interested in the impact of extra costs of flight preperation on the consumer’s willingness to pay for the space trip. It is rather questionable whether this contributes value to Virgin Galactic ´s management problem. This can be reasoned as follows: Since the space trip is a luxury good that is very expensive, it is very unlikely that a small fee for an extra preperation impacts consumer´s willingness to pay for the space trip.

Accordingly, this research question can be dismissed. Questions about the influence of prices set by competitors, the economic situation on consumer´s willingness to pay are covered equally in both of the research designs. One question in Team A´s research design deals with the impact of the duration in the zero gravity phase on the willingness to pay.

This factor is expected to have significant influence on the willingness to pay, because this experience might be the main reason why people would like to travel to space. It is in Virgin Galactic’s interest to analyze the impact of this feature as it is expected to contribute value to solve the management problem. 3. Research Questions, Hypotheses and Statistical Analysis

The marketing research aims to solve Virgin Galactic’s problem statement. In order to investigate the collected marketing research data a statistical analysis is conducted. The given data is based on the research questions defined by John Doe. Although the data has some pitfalls, the answers given by the respondents are accurate. With this information for each research question the appropriate statistical test is performed. Research Question 1

The first research question focuses on gaining information regarding possible customers. It is in Virgin Galactic’s interest to find who is willing to pay the target price. Specifically, the management team needs to know whether there are enough potential customers that are willing to pay the target price, or not. This information is important in case the result shows that there are too little potential customers. Low demand might create losses for Virgin Galactic.

Therefore, the first research question is formulated as follows: 1. Is the proportion of people that is willing to pay $200000 equal to 5%? The percentage of 5 comes from an earlier study conducted by Virgin Galactic before the company had its initial start-up. The matching hypotheses regarding the research question were investigated with a one-sample t-test. The choice of this type of statistical test is the interval nature of the variable and the fact that there is only one sample from which data can be analyzed. Following hypotheses are used to check the assumptions:

H0: The proportion of people that are willing to pay $200,000 for a space trip is not equal to 5%.
HA: The proportion of people that are willing to pay $200,000 for a space trip is equal to 5%. In order to perform an analysis there is only one question needed with the variable willing

2. The participants can choose between five levels of agreement on a likert scale ranging from “totally agree” to “totally disagree”. Performing the test the neutral point on the scale is used, which is “ neither agree, nor disagree”. The requirements for the test are fulfilled. The number of respondents is 176, which is higher than the required group count of thirty. The next step is to check the p-value.

With a p-value below 5% the null hypothesis can be rejected. The obtained result of the two-sided one sample t-test is significant as the p-value is 0,000. Consequently, the proportion of people that are willing to pay $200,000 for a space trip is equal or larger than 5 per cent. It can be concluded that Virgin Galactic has potential customers and their demand for the space trip ensures profitability. Research Question 2

The aim of the second research question is to examine customer’s buying behaviour assuming that there are competitors with different price-settings for a space trip. Virgin Galactic does not have to compete with any other institution currently, although gathering information about future competition is important. It will help Virgin Galactic to set or restructure its own pricing strategy to meet customer’s willingness to buy their tickets for the space trip. Thus, the research question asks for the following:

2. Do the prices set by our competitors influence the willingness to buy tickets for a space trip? The hypotheses related to this research question are tested with a chi-square test of independence.

H0: There is no influence from the prices set by competitors on the customer’s willingness to buy tickets for a space trip.
HA: There is an influence from the prices set by competitors on the customer’s willingness to buy tickets for a space trip. In the questionnaire two questions are connected to these hypotheses. The first question is “Are you willing to buy a ticket of $200,000 for a space trip?” in which the participants have answer possibilities of “yes”, “no” or “no answer”. In the second one the respondents have to indicate their agreement on the statement if they compare the price of Virgin Galactic with prices of competitors.

With willing1, the dependent variable that is from nominal nature and competitor, the independent variable, existing of several groups the chi-square test of independence is used. Examining the outcome, the minimum cell frequency condition below twenty per cent is fulfilled. Furthermore, the p-value points out whether we can reject the null hypothesis at a significance level of five per cent. The p-value of 0,379 is above the five per cent level.

Hence, there is no evidence to reject the null hypothesis. Referring back to the research question the prices set by competitors does not influence the willingness to buy a ticket for the space trip from Virgin Galactic. In case Virgin Galactic faces competitors, they would not have to adjust their pricing strategy in order to remain competitive and profitable. Research Question 3,4 and 5

The next three research questions concern all characteristics of the potential customers in relation to the price. Therefore, the research questions investigate whether there are connections between the income level, the nationality, the profession of the customers and their willingness to buy tickets for the space trip. Virgin Galactic intends to identify its actual target group by addressing these questions. The main aspect in the following research question is to find whether different income levels affect the customer’s willingness to buy the ticket for the target price.

3. Is there a difference in willingness to buy a ticket of $200,000 for the space trip between different income levels?”

The matching hypotheses are tested with chi-square test of independence. The reason for this test is that the dependent variable willing1 is from nominal nature and the responses regarding the income level result in more than two independent groups.

H0: There is no difference in the willingness to buy a ticket for $20000 for the space trip between different income levels.
HA: There is a difference in the willingness to buy a ticket for $20000 for the space trip between different income levels. The questions connected to these hypotheses are asking for the willingness to purchase a ticket for the space trip or not. Furthermore, the participants are asked to indicate their income level on an ordinal scale.

Hence, willing1 is our dependent variable and income the independent one. Before investigating the test output some remarks should be mentioned: In the questionnaire questions the income levels are stated in Euros, whereby in the research question the target price is stated in dollars. So, there is a mismatch of currencies. It would be better to use a common currency. In addition to that, the income groups are not set up logically. In the answer possibilities for the income groups there is a gap between the group of €1000 up to €2499 and the group of €7500 up to €9000. Since the basis of the analysis is the given data, there are no possible changes for the statistical test.

The output displays that the number of respondents and the assumption concerning the “minimum expected cell frequency” are not met. The group with an income level below €1000 has less than the required five respondents. Thus, this group and the next from €1000 up to €2499 need to be merged. Checking the p-value, that equals 0,884, it is above the significance level. Therefore, we fail to reject the null hypothesis.

The result is that the different income level groups do not differ significantly in their willingness to buy tickets for the space trip. The fourth research question focuses on the relationship between the price of the space trip and the customer’s nationalities. It is in the interest of Virgin Galactic to find where potential customers are from in order to specify their target group.

4. Does the willingness to buy a ticket of $200000 differ between nationalities? The most suitable statistical tool to investigate this research question is to perform the ANOVA test. Following hypotheses are set up:

H0: There is no difference between nationality and the willingness to buy a ticket for $200,000.
HA: There is a difference between nationality and the willingness to buy a ticket for $200,000. To analyse these hypotheses two questionnaire questions are required. One question regards the willingness to buy a ticket at the target price and the other one asks for the customer’s nationality. As mentioned before, the variable willing2 is from interval nature and the
dependent one. The variable nationality can be classified as nominal and has more than two independent groups. Consequently, the use of the ANOVA test is justified.

Conducting the test, the condition of having at least 20 respondents (specifically for this data) in each group is violated. The group of Dutch respondents is only counting 19 and has to be deleted to fulfil the above stated condition. The test is downgraded and done another time without the minority of Dutch respondents, but the distinct nationalities are kept. Since with the new output the assumptions are satisfied, the p-value can be investigated.

In this case it is 0,602 leading to no rejection of the null hypothesis. There is no significant evidence that different nationalities affect the willingness to buy a ticket of $200,000. Hence, no certain nationality favours Virgin Galactic’s space trip. The fifth research question investigates whether different professions influence the customer’s willingness to buy a ticket for the space trip.

5. Does the customer’s profession influence the willingness to buy a ticket for a spacetrip? The hypotheses related to this particular question were tested with a chi-square test of independence.

H0: The customer’s profession does not have an influence on the willingness to buy a ticket for a space trip.
HA: The customer’s profession does have an influence on the willingness to buy a ticket for a space trip. In order to examine the hypotheses above two questionnaire questions have to be taken in consideration. First, the willingness to buy a ticket is requested. Second, the participants are asked to indicate their profession. Therefore, thirteen answer possibilities are given. Due to the nominal nature of the dependent variable willing1 and the need to distinguish between more than two independent groups a chi-square test of independence is appropriate.

In this case the independent variable is profession. After running the test, it becomes clear that both assumptions are not satisfied: In seven out of the thirteen groups regarding the profession there are less than the expected five respondents. To meet the minimum expected cell frequency the variable normally could be regrouped or the groups with small numbers of respondents could be removed. In this case the variable is profession, which is difficult to regroup or merge. As professions differ in a wide range, it is not reasonable to group for example “junior management” and “temporary employee”. Similarly eliminating some groups of profession do not lead to a meaningful result.

So, from this test output no further interpretation can be done as the first condition is badly violated. Checking the p-value that equals 0,497 and is above the five percent significance level points out that the second requirement for any interpretation is also not met. Therefore, nothing can be concluded.

5. Limitations and recommendations
One of the main limitations of Virgin Galactic Marketing team research is that the foundation of it is based solely on a questionnaire stating hypothetical questions. The answers significantly depend on the formulation of question. If personal interviews were taken a person answering could always have a chance to clarify any misunderstanding that would produce much more precise results. Therefore each question should be more detailed and simpler. The specific limitations of research design as well as questionnaire questions were already introduced and explained in depth at the beginning of this report. Furthermore, to analyze society in depth, a research questionnaire was filled by 183 participants, which is a low figure, that might not be sufficient enough to be representative.

The small sample could mislead the marketing team and in the end the research could be misinterpreted. In order to improve the research for Virgin Galactic in future it is advisable to specify on other consumer characteristics that are correlated to the willingness to pay for the space trip. Characteristics other than demographic ones can be taken in consideration to have a more precise view on the actual market demand.

Furthermore, it is possible to define the target groups in a more detailed manner. Characteristics that help to determine a target group are for example hobbies, interest and lifestyle. To conclude, the research design conducted by John Doe leaves space for improvement. The paper dealt with the strength and weaknesses of the two designs, the one from Team A and the one from John Doe. To make an educated suggestion to Virgin Galactic on the pricing decision for the space trip it is recommendable to compile a mix out of the two research designs.

Doing that and ,additionally, taking the other recommendations mentioned in this paper in consideration will provide the management with a research that gives valuable information to solve Virgin Galactic’s management problem.

6. Conclussion
In conclusion, both of the research designs have the same management problems to solve, but they differ in their interpretation. While John Doe focuses on price-related factors that influence people´s willingness to pay like extra costs and competitors price, team A takes other, more personal factors into consideration such as personal risk attitude and a person´s field of interest correlated to the willingness to pay for the space trip.

Though, one weakness of team A´s research design is that it does not adress one of the three objectives: what price people expect they need to pay for a space trip. John Doe does adress this issue, however his design has flaws. Therefore, it is adviseable to construct a research design that is a combination of the two. As mentioned before both designs have strengths and weaknesses. Combining the positive aspects of both designs seems to be a solid solution in order to give reasonable feedback and recommendations to the management team of Virgin Galactic.

Appendix
1) Questionnaire Team A:
Dear Participant,
Your opinion is vital! For our research, we need all the information that you can give to us. Take in consideration, your response will be kept confidentially and only members of our small research group will have access to the information you give. You do NOT have to indicate your name. In addition, the data will not be given further to any third party. Remember while you are filling this questionnaire that there are no right or wrong answers, we just need to know your opinion about the subject. It will take you only between 5 and 10 minutes! Thank you very much for helping us!

Virgin Galactic is an enterprise that wants to sell a very special product, a space trip. In this space trip you experience 15 minutes of being outer space with zero gravity, where you can see the darkness of space and the curvature of the Earth. We would like to know if you are willing to pay for
this special product. 1. What gender are you?

* Female
* Male
2. Nationality
Please indicate your nationality:
* US citizin
* German
* Chinese
* Other, please specify________

3. Please indicate your income after tax per year in euros: * ___________

4. To what extent do you agree with the following statement?
“I am willing to pay €100000 for the space trip if I had the resources.” Totally disagree ¢ ¢ ¢ ¢ ¢Totally agree
5. What is your attitude towards extreme activities? (Please tick one) * risk averse person
* risk neutral person
* risk preffere person

6. Which of the following appeals to your preference?
* Astronomy
* Nature
* Technology
* Art
* Sports
* No preference

7. To what extent do you agree with the following statement?

“ I tend to pay for the space trip if the duration in zero gravity is relatively long (more than 15 minutes).” Totally disagree ¢ ¢ ¢ ¢ ¢Totally agree
8. To what extent do you agree with the following statement?
“ If I would like to pay for the space trip, I would not pay it without the presence of an insurance.”
Totally disagree ¢ ¢ ¢ ¢ ¢Totally agree
9. To what extent do you agree with the following statement?
“ Lack of safety conserning health is an important reason for me not to pay for the space trip.”
Totally disagree ¢ ¢ ¢ ¢ ¢Totally agree
10. In a worldwide economic crisis I restrict my spending’s the most on
(Please tick one)
* Exquisit Leisure activities (cruise trip around the world etc.) * Luxury goods
* Convienence goods (food, clothes etc.)
* Real estate investments
* I don’t change my spending habits

11. Would your willingness to pay decrease if there are cheaper alternatives? * Yes
* No

Thank you for taking your time to fill out the questionnaire. We greatly appreciate your cooperation and help. Please check to make sure that you have not skipped any questions. Your answers will contribute to the research of Virgin Galactic and lead to a better understanding of our customers. Thank you very much!

2) Questionnaire John Doe
Willing1: Are you willing to buy $200.000 for a space trip?
* YES (1)
* NO (2)
Willing2: I am willing to buy a ticket for a space trip if it costs $200.000 * Totally Disagree (1)
* Disagree (2)
* Neither Agree nor Disagree (3)
* Agree (4)
* Totally Agree (5)
Competitor: I Compare the price of Virgin Galactic with prices of competitors * Yes (1)
* No (2)
Riskfatal: Fatal accidents would impact my willingness to buy a ticket for a space trip * Totally Disagree (1)
* Disagree (2)
* Neither Agree nor Disagree (3)
* Agree (4)
* Totally Agree (5)
Econsist: The economic situation would impact my willingness to buy a ticket for a space trip * Totally Disagree (1)
* Disagree (2)
* Neither Agree nor Disagree (3)
* Agree (4)
* Totally Agree (5)
Extracost: I am willing to pay extra costs to prepare myself for a space trip * Yes (1)
* No (2)

Amount: What prices do you think is a fair price for a space trip? * $5.000 (1)
* $10.000 (2)
* $15.000 (3)
* $20.000 (4)
* $25.000 (5)
* I don’t know (8)
Gender: What is your gender?
* Man (1)
* Woman (2)
Nationality: What is your nationality?
* British (1)
* Dutch (2)
* German (3)
* Italian (4)
* American (5)
* Russian (6)
Profession: What is your profession?
* Upper management (1)
* Middle management (2)
* Junior management (3)
* Administrative staff (4)
* Support staff (5)
* Student (6)
* Trained professional (7)
* Skilled labour (8)
* Consultant (9)
* Temporary employee (10)
* Researcher (11)
* Self-employed (12)
* Other (13).
Income: What is your monthly net income?
* Below 1.000 euros (1)
* 1.000-2.499 euros (2)
* 7.500-9.999 euros (3)
* 10.000-19.999 euros (4)
* 20.000 euros or more (5)
* Don’t want to answer (9)

3) Output for Research question 1:
One Sample t-test
One-Sample Statistics|
| N| Mean| Std. Deviation| Std. Error Mean|
I am willing to buy a ticket for a space trip if it costs $200,000| 176| 2,4205| 1,25331| ,09447|

One-Sample Test|
| Test Value = 3 |
| t| df| Sig. (2-tailed)| Mean Difference| 95% Confidence Interval of the Difference| | | | | | Lower| Upper|
I am willing to buy a ticket for a space trip if it costs $200,000| -6,135| 175| ,000| -,57955| -,7660| -,3931|

4) Output for Research question 2
Chi-square test of independence
Case Processing Summary|
| Cases|
| Valid| Missing| Total|
| N| Percent| N| Percent| N| Percent|
Are you willing to buy $200,000 for a space trip ? * I compare the price of Virgin Galactic with prices of competitors| 168| 91,8%| 15| 8,2%| 183| 100,0%|

Are you willing to buy $200,000 for a space trip ? * I compare the price of Virgin Galactic with prices of competitors Crosstabulation| Count|
| I compare the price of Virgin Galactic with prices of competitors| Total| | yes| no| |
Are you willing to buy $200,000 for a space trip ?| no| 77| 47| 124| | yes| 24| 20| 44|
Total| 101| 67| 168|

Chi-Square Tests|
| Value| df| Asymp. Sig. (2-sided)| Exact Sig. (2-sided)| Exact Sig. (1-sided)| Pearson Chi-Square| ,772a| 1| ,379| | |
Continuity Correctionb| ,490| 1| ,484| | |
Likelihood Ratio| ,766| 1| ,381| | |
Fisher’s Exact Test| | | | ,474| ,241|
Linear-by-Linear Association| ,768| 1| ,381| | |
N of Valid Cases| 168| | | | |
a. 0 cells (,0%) have expected count less than 5. The minimum expected count is 17,55.b. Computed only for a 2×2 table5) Output for research question 3Chi-square test of independence|

| What is your monthly net income?| Total|
| below 1000 euro| 7500 – 9999 euro| 10000 -19999 euro| 20000 euro or
more| | Are you willing to buy $200,000 for a space trip ?| no| Count| 38| 24| 45| 18| 125| | | % within Are you willing to buy $200,000 for a space trip ?| 30,4%| 19,2%| 36,0%| 14,4%| 100,0%| | | % within What is your monthly net income?| 77,6%| 70,6%| 77,6%| 72,0%| 75,3%| | | % of Total| 22,9%| 14,5%| 27,1%| 10,8%| 75,3%|

| yes| Count| 11| 10| 13| 7| 41|
| | % within Are you willing to buy $200,000 for a space trip ?| 26,8%| 24,4%| 31,7%| 17,1%| 100,0%| | | % within What is your monthly net income?| 22,4%| 29,4%| 22,4%| 28,0%| 24,7%| | | % of Total| 6,6%| 6,0%| 7,8%| 4,2%| 24,7%|

Total| Count| 49| 34| 58| 25| 166|
| % within Are you willing to buy $200,000 for a space trip ?| 29,5%| 20,5%| 34,9%| 15,1%| 100,0%| | % within What is your monthly net income?| 100,0%| 100,0%| 100,0%| 100,0%| 100,0%| | % of Total| 29,5%| 20,5%| 34,9%| 15,1%| 100,0%|

Chi-Square Tests|
| Value| df| Asymp. Sig. (2-sided)|
Pearson Chi-Square| ,849a| 3| ,838|
Likelihood Ratio| ,835| 3| ,841|
Linear-by-Linear Association| ,097| 1| ,756|
N of Valid Cases| 166| | |
a. 0 cells (,0%) have expected count less than 5. The minimum expected count is 6,17.|

6) Output for research question 4
ANOVA test
Descriptives|
I am willing to buy a ticket for a space trip if it costs $200,000| | N| Mean| Std. Deviation| Std. Error| 95% Confidence Interval for Mean| Minimum| Maximum| | | | | | Lower Bound| Upper Bound| | |

British| 31| 2,5161| 1,33843| ,24039| 2,0252| 3,0071| 1,00| 5,00|
German| 29| 2,1724| 1,25553| ,23315| 1,6948| 2,6500| 1,00| 5,00| Italian| 36| 2,3611| 1,37639| ,22940| 1,8954| 2,8268| 1,00| 5,00| American| 30| 2,1333| 1,07425| ,19613| 1,7322| 2,5345| 1,00| 5,00| Russian| 31| 2,5484| 1,23393| ,22162| 2,0958| 3,0010| 1,00| 5,00| Total| 157| 2,3503| 1,26017| ,10057| 2,1517| 2,5490| 1,00| 5,00|

Test of Homogeneity of Variances|
I am willing to buy a ticket for a space trip if it costs $200,000| Levene Statistic| df1| df2| Sig.|
1,149| 4| 152| ,336|

ANOVA|
I am willing to buy a ticket for a space trip if it costs $200,000| | Sum of Squares| df| Mean Square| F| Sig.|
Between Groups| 4,403| 4| 1,101| ,688| ,602|
Within Groups| 243,330| 152| 1,601| | |
Total| 247,732| 156| | | |

7) Output for research question 5
Chi-square test of independence
Case Processing Summary|
| Cases|
| Valid| Missing| Total|
| N| Percent| N| Percent| N| Percent|
Are you willing to buy $200,000 for a space trip ? * What is your profession?| 175| 95,6%| 8| 4,4%| 183| 100,0%|

Are you willing to buy $200,000 for a space trip ? * What is your profession? Crosstabulation| | What is your profession?| Total|
| upper management| middle management| junior management| administrative staff| support staff| student| trained professional| skilled laborer| consultant| temporary employee| researcher| self-employed| other| | Are you willing to buy $200,000 for a space trip ?| no| Count| 34| 3| 2| 1| 1| 5| 4| 5| 26| 1| 1| 32| 16| 131| | | % within What is your profession?| 65,4%| 75,0%| 66,7%| 33,3%| 100,0%| 100,0%|
100,0%| 71,4%| 76,5%| 100,0%| 100,0%| 76,2%| 88,9%| 74,9%| | yes| Count| 18| 1| 1| 2| 0| 0| 0| 2| 8| 0| 0| 10| 2| 44| | | % within What is your profession?| 34,6%| 25,0%| 33,3%| 66,7%| ,0%| ,0%| ,0%| 28,6%| 23,5%| ,0%| ,0%| 23,8%| 11,1%| 25,1%| Total| Count| 52| 4| 3| 3| 1| 5| 4| 7| 34| 1| 1| 42| 18| 175| | % within What is your profession?| 100,0%| 100,0%| 100,0%| 100,0%| 100,0%| 100,0%| 100,0%| 100,0%| 100,0%| 100,0%| 100,0%| 100,0%| 100,0%| 100,0%|

Chi-Square Tests|
| Value| df| Asymp. Sig. (2-sided)|
Pearson Chi-Square| 11,378a| 12| ,497|

8) Output for research question 6

One-Sample Statistics|
| N| Mean| Std. Deviation| Std. Error Mean|
The economic situation would impact my willingness to buy a ticket for a space trip.| 183| 2,7705| 1,35541| ,10020|

One-Sample Test|
| Test Value = 3 |
| t| df| Sig. (2-tailed)| Mean Difference| 95% Confidence Interval of the Difference| | | | | | Lower| Upper|
The economic situation would impact my willingness to buy a ticket for a space trip.| -2,291| 182| ,023| -,22951| -,4272| -,0318|

9) Output for research question 7

Case Processing Summary|
| Cases|
| Valid| Missing| Total|
| N| Percent| N| Percent| N| Percent|
Are you willing to buy $200,000 for a space trip ? * I am willing to pay extra costs to prepare myself for a space trip| 175| 95,6%| 8| 4,4%|
183| 100,0%|

Are you willing to buy $200,000 for a space trip ? * I am willing to pay extra costs to prepare myself for a space trip Crosstabulation| | I am willing to pay extra costs to prepare myself for a space trip| Total| | yes| no| |

Are you willing to buy $200,000 for a space trip ?| no| Count| 100| 31| 131| | | % within I am willing to pay extra costs to prepare myself for a space trip| 82,0%| 58,5%| 74,9%| | yes| Count| 22| 22| 44|

| | % within I am willing to pay extra costs to prepare myself for a space trip| 18,0%| 41,5%| 25,1%| Total| Count| 122| 53| 175|
| % within I am willing to pay extra costs to prepare myself for a space trip| 100,0%| 100,0%| 100,0%|

Chi-Square Tests|
| Value| df| Asymp. Sig. (2-sided)| Exact Sig. (2-sided)| Exact Sig. (1-sided)| Pearson Chi-Square| 10,820a| 1| ,001| | |
Continuity Correctionb| 9,608| 1| ,002| | |
Likelihood Ratio| 10,286| 1| ,001| | |
Fisher’s Exact Test| | | | ,002| ,001|
Linear-by-Linear Association| 10,758| 1| ,001| | |
N of Valid Cases| 175| | | | |
a. 0 cells (,0%) have expected count less than 5. The minimum expected count is 13,33.b. Computed only for a 2×2 table|

10) Output for research question 8

Group Statistics|
| What is your gender?| N| Mean| Std. Deviation| Std. Error Mean| What price do you think is a fair price for a space trip?| Man| 80| 3,7500| 1,99048| ,22254| | Woman| 74| 3,3378| 1,69832| ,19743|

Independent Samples Test| | Levene’s Test for
Equality of Variances| t-test for Equality of Means| | F| Sig.| t| df| Sig. (2-tailed)| Mean Difference| Std. Error Difference| 95% Confidence Interval of the Difference| | | | | | | | | Lower| Upper|

What price do you think is a fair price for a space trip?| Equal variances assumed| ,519| ,472| 1,377| 152| ,171| ,41216| ,29934| -,17923| 1,00356| | Equal variances not assumed| | | 1,385| 151,039| ,168| ,41216| ,29749| -,17562| ,99995|

11) Output for research question 9

| N| Mean| Std. Deviation| Std. Error| 95% Confidence Interval for Mean| Minimum| Maximum| | | | | | Lower Bound| Upper Bound| | |
1,00| 81| 3,3580| 2,15817| ,23980| 2,8808| 3,8352| 1,00| 9,00| 2,00| 41| 3,7805| 1,57341| ,24572| 3,2839| 4,2771| 1,00| 9,00| 3,00| 32| 3,7500| 1,29515| ,22895| 3,2830| 4,2170| 1,00| 5,00| Total| 154| 3,5519| 1,86134| ,14999| 3,2556| 3,8483| 1,00| 9,00|

Test of Homogeneity of Variances|
What price do you think is a fair price for a space trip?| Levene Statistic| df1| df2| Sig.|
3,637| 2| 151| ,029|

ANOVA|
What price do you think is a fair price for a space trip?| | Sum of Squares| df| Mean Square| F| Sig.|
Between Groups| 6,443| 2| 3,221| ,929| ,397|
Within Groups| 523,642| 151| 3,468| | |
Total| 530,084| 153| | | |

12) Output for research question 10
One-Sample Statistics|
| N| Mean| Std. Deviation| Std. Error Mean|
Fatal accidents would impact my willingness to buy a ticket for a space

Free Virgin Galactic, Market Reseach on Price Essay Sample

A

  • Subject:

  • University/College: University of Chicago

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 9 April 2016

  • Words:

  • Pages:

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