Project Team Maclynn Kornreich Dejon Lofton Alexa Tanney

1. Math 110 Final Report – December 2011 Survey and Analysis for “To Buy or Not to Buy a CD” Project Team MaclynnKornreich Dejon Lofton AlexaTanney

2. Topics Identify a business or social issue to which surveying will get to the mind of the consumer Addressable Minds… what is it, and how it works Review the study process and the results and conclusions

3. Purchasing of CD’s Issue An increased number of people have begun to download music illegally off of the internet. Many artist have begun to feel discouraged within their careers Artist and record labels need to know how to hold their consumers interest and how to produce more sales of their CDs.

4. About Addressable Minds • Addressable Minds is a scientific, actionable form of “predictive consumer intelligence” for business and social issues accurately defining consumer attitudes and preferences both stated and unstated. • It has been described by Malcolm Gladwell and others as discovering the “DNA of the Consumers Mind”. • This patented science created by Dr. Howard Moskowitz, author of “Selling Blue Elephants” (Wharton Press) and the Wharton Business School has achieved critical acclaim and financial success across: • product design and development, • consumer messaging, • more effective consumer engagement physically and digitally.

5. Dr. Howard Moskowitz. Addressable Minds Inventor, honored by the scientific community,... • Is the Chairman of iNovum, a graduate of Queens College and holds a Ph.D. in Experimental Psychology from Harvard University. • Won two of the most prestigious awards in market • research • 2005 Charles Coolidge Parlin Marketing Research Award The “Nobel Prize” of Market Research, received only by the pioneers of market research. Recipients include Arthur Nielsen, George Gallup, Michael Porter, David Ogilvy and Philip Kotler. • 2010 Walston Chubb Award for Innovation across all • sciences, Sigma Xi, The Scientific Research Society, international Awarded for Mind Genomics: The science underlying the technology used in this Math 110 course.

6. Addressable Minds Psychographic Segmentation - Social Class - Lifestyle Type - Personality Type Behavioral Segmentation - Product Usage - Brand Loyalty - Attitudinal Demographic Segmentation - Age - Gender - Income Cuts across traditional segmentation & detects hidden preferences Addressable Minds

7. Create Addressable Minds messaging for sales IDENTIFY TARGET MARKET DEVELOP SURVEY QUESTIONS 10 – 15 minutes INTERNET IdeaMap™ SURVEY SUY Potential buyers of CDs or illegal downloaders ANALYZED SURVEY RESULTS → Addressable Minds MARKET SEGMENTATION SEGMENTATION WIZARD MARKETING PHRASES 7

8. Addressable Minds’ underlying scienceuses standard Science and Mathematics IDENTIFY TARGET MARKET DEVELOP SURVEY QUESTIONS INTERNET IdeaMap™ SURVEY SUY Potential buyers of CDs or illegal downloaders Experimental Design – Stimulus/Response ANALYZED SURVEY RESULTS → Addressable Minds Ordinary Least Squares Regression Discriminant Function Analysis Conjoint analysis 8

9. A Survey Was Performed by the Team in the area of CD Sales To serve as a learning vehicle for the application Addressable Minds to a practical business or social issue Sufficient to show the power of the method 9

10. SURVEY OVERVIEW(1 of 2) 10 • An Addressable Minds Survey is a survey of key ideas for CD sales and illegal downloading. • Survey conducted on November 6, 2011 : • Population Ages 18 and over of Males/Females across the US • The team created key marketing and advertising messaging with the intent to entice the survey taker to purchase CDs instead of downloading music illegally.

11. SURVEY OVERVIEW(2 of 2) 11 • 51 Individuals responded • Assess two major aspects of messages • Does it convince a prospect to purchase CDs? • How does it make the prospect feel about illegal downloading? • Data reveals the mind-sets of respondents across the United States, as well as ‘what works, what doesn’t’

12. The Survey begins with an orientation screen 12

13. Each respondent evaluates 48 unique combinations of elements First on overall interest 13

14. Then selects a single emotion 14 14

15. What convinces?What drives feelings? RESULTS

16. Total Panel – Interested in purchasing the CD and not downloading music illegally 16

17. The Total Panel’s Interest is Different From That in Each of The Two Identified Segments

18. There are two unique segments Extras/Promo Hunters 63% Realist/True Fans 37% 18 Messaging for one isn’t necessary going to appeal to the other…and could actually hurt

19. Extras/Promotion Hunters (Seg1)- Interested in the extra bonus features of the CD’s they purchase.

20. Realist/True Fans (Seg2)- Interested in not only bonus features, but also the artist themselves and the music.

21. The “Segmentation Wizard” is a 30 second shortcut survey that is extracted from the 15 minute survey and identifies the segment membership of that individual IDENTIFY TARGET MARKET DEVELOP SURVEY QUESTIONS 10 – 15 minutes INTERNET IdeaMap™ SURVEY SUY Potential buyers of CDs or illegal downloaders ANALYZED SURVEY RESULTS → Addressable Minds SEGMENTATION WIZARD Segmentation Wizard consists of 3 or 4 elements identified in the in-depth 10 – 15 minute survey 21

22. The CD ProjectSegmentation Wizard– Online exampleThe Segmentation Wizard is a short survey with the questions derived from the full survey to identify segment membership

23. The CD Project Segmentation Wizard– Online example

27. Conclusions The two segments created by the Addressable minds survey for CDs now allows music promoters to know what to use to entice customers. Restating what the CD already comes with and then adding a legacy to it can effect the way people view the product. You can improve CD sales, but you have to show consumers that there are benefits to spending their money rather than downloading illegally. Know the segmentation Give the right message to the right segment