Using a Longitudinal Design Over Cross-Sectional and the Snowball Sampling

What is the advantage of using a longitudinal design over cross-sectional? Give an example (2 points; Word limit 150 words)
One of the main advantages of using a longitudinal design over a cross-section design is the former’s capability of establishing a cause-and-effect relationship over a long period of time. This advantage stems from the fact that by looking at a sample population over a long period of time, the researcher may be able to determine the cause and effect while removing any outliers and external variables that could occur as ‘isolated phenomena’. One example of this advantage could be seen in the relationship between culture and the purchasing preferences of individuals. By using a longitudinal study, the researcher could correlate the culture (cause) with the purchasing preferences of a population (effect) while removing the possible effects of intergenerational changes (i.e., baby boomers vs millenials) in purchasing preferences.
An established hair-dryer company wants to test-market their new hairdryer in Omaha, Nebraska before they launch it in the entire nation. What can be the advantages and disadvantages of this move? (2 points; Word limit 150 words)
Some of the main advantages of trying the company’s new hair dryer in Omaha, Nebraska are (1) ability to test product success in a local market, (2) implement quick improvements through faster feedback mechanisms, and (3) reduce the risks of failure and its accompanying cost. Particularly, by testing the product in a local market, the company is able to determine how the local market would ‘receive’ the product. Additionally, since the market is small, acquiring customer feedback and implementing changes is also faster. Finally, because of the factors above, the risks are also mitigated.
On the other hand, however, the main disadvantage of doing this local testing is the risks of revealing one’s product and increasing the chances where a competitor company would copy the design and release it earlier than the company does.
Why do pharma companies find Snowball Sampling useful? (1 point; Word Limit: 75 words)
Pharma companies benefit a lot of from Snowball sampling because it gives them ‘primary access’ towards people who are most likely to use the drug that they are testing. Since snowball sampling is a ‘non-probability sampling’ wherein one participant refers other persons for testing, the pharma company’s costs for finding the ‘potential users’ is reduced, while the risks of employing participants that are not-fit for the study is reduced.
Lots of small boutique hotels are struggling right now due to the low demand. One hotel is thinking of repositioning itself as a luxurious self-isolating facility where people can stay to isolate themselves from their family members if needed. Make marketing research questions (not a complete plan) for the hotel to begin their marketing research. Give reasons. (3 points; word limit 250 words)
In order to examine the viability of this hotel, the following market research questions would be employed; (1) Is the market willing to pay for a ‘luxurious hotel’ to isolate themselves if needed; (2) Would the potential customers choose to stay in the self-isolating hotel compared to a hospital setting; (3) how would the target market perceive the ‘safety’ of the hotel compared to a regular hospital or quarantine facility.
The first marketing question is designed in order to determine whether an infected or PUI (Person under Investigation) individual is willing to pay significantly more in a hotel compared to hospital. Healthcare providers usually provide Medicare and Medicaid benefits to individuals who avail their facilities. However, since the business is not a ‘healthcare’ facility, then there is a high probability that the customers would choose the cheaper option.
The second marketing question relates to the market’s perception about whether the facilities, treatments, and medications that are given to PUIs and active cases would also be provided in the hotel. Since individuals who contract COVID-19 require medical treatment, then their perception about how the facility could provide these medical treatments to them is necessary to ensure demand.
Finally, the marketer should also question the perception of individuals about the facility itself. Since the hotel would still be a place for ‘isolation’ and ‘quarantine’ there would be a lot of prejudice about its capability of maintaining the facilities clean from the virus. This could then affect the demand for the hotel.
You are a pricing research consultant. A company, ‘NY Heliport’ (name is fictional), wants to start a service for people traveling between Albany and NYC. The one-way ride will take about forty minutes and can accommodate six passengers excluding the pilot. The fixed cost of starting a company is 10 million dollars and variable cost for each helicopter ride is $2000. Your task is to come up with a price for a one-way trip. What will you do? (6 points; Word Limit: 500 words)
In order to come up with a price for a one way trip several factors must be taken into consideration in order to balance the demand and supply as well as costs and profit margins for the service. Accordingly, since the target market is very specific (...