The Carlson Consulting Enterprise used sophisticated statistical analysis to evaluate the appeal of the Minnesota Children’s Museum as an educational and recreational destination. The students conducted online and offline surveys and collected over 2,000 responses from different types of potential customers.
Consulting Enterprise students Manish Prabhu, MBA class of 2006, and Shannon Peloquin, BSB class of 2006, worked with the Enterprise’s academic director Professor Alok Gupta and doctoral candidate Dmitry Zhdanov to apply statistical analysis, known as discrete choice modeling to the survey data. The discrete choice model called logit defines the relationship between intentions and preferences, and the actual probability of the stated choice, such as a purchase.
The formal modeling quantified information that the Museum knew anecdotally. For example, while the Museum knew that women are more likely to bring children to the Museum, the logit analysis revealed that women are 58 percent more likely to bring their children as compared to men. Although the Museum knew that special exhibits attracted more traffic, the analysis estimated this increase to be 26 percent.
The quantification can be used for strategic purposes such as the allocation of resources to various promotional activities that the Museum undertakes. Similarly, the analysis found that radio advertising is the least effective way of advertising and that online advertising is a neglected but potentially more effective advertising medium for the Museum. In addition, the analysis identified that school-based dissemination of information regarding the Museum’s activities is one of the most effective ways of promoting the Museum.
The model also identified key opportunities for targeted growth. For example, the analysis indicated that Hispanics are 67 percent less likely to visit the Museum than other user groups. Hence, the Museum may want to consider specific exhibits and displays aimed at drawing this segment.
“Overall, the analysis not only provided areas of focus and quantification of impact of various factors that affect the Museum’s patronage, but also helped determine areas of qualitative research for the Consulting Enterprise team assisting the Minnesota Children’s Museum,” saysGupta, Carlson School Professor of Information and Decision Sciences. |
