The following appeared in a memo from New Ventures Consulting to the president of HobCo, Inc., a chain of hobby shops.
“Our team has completed its research on suitable building sites for a new HobCo hobby Shop in the city of Grilldon. We discovered that there are currently no hobby shops in southeastern Grilldon. When our researchers conducted a poll of area residents, 88 percent of those who responded indicated that they would welcome the opening of a hobby shop in southeastern Grilldon. Grilldon is in a region of the nation in which the hobby business has increased by 300 percent during the past decade. In addition, Grilldon has a very large population of retirees, a demographic with ample time to devote to hobbies. We therefore recommend that you choose southeastern Grilldon as the site for your next HobCo Hobby Shop. We predict that a shop in this area will draw a steady stream of enthusiastic new HobCo customers.”
Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation is likely to have the predicted result. Be sure to explain how the answers to these questions would help to evaluate the recommendation.
Many people fail to question their assumptions. In this case, New Ventures Consulting is assuming that retirees have plenty of time to shop. Many retirees are so busy managing their money that they don’t have the time to shop for new hobbies. Instead, they rely on their children to purchase items for them. So, if New Ventures Consulting assumes that retirees have time, does their recommendation include research that would verify that assumption? For example, would the research reveal that retirees prefer to purchase hobbies online, which New Ventures Consulting had apparently not considered?If New Ventures Consulting assumes that retirees have time, then they should have considered whether or not retirees have money to spend on hobbies. Many retirees live on fixed incomes, and that money is used to pay for necessities. Even if the retirees have money, they may not want to spend it on hobbies. For example, some retirees may wish to travel, and they may not want to spend money on hobbies while on vacation. Or they may enjoy gardening, but not want to spend their limited free time weeding their gardens. These retirees may prefer to spend money on other activities. Researching the desire and willingness of retirees to spend their money on hobbies could reveal useful information that would help New Ventures Consulting determine whether southeastern Grilldon is a suitable location for a shop.
Research also could reveal whether retirees would prefer to purchase hobby-related items in a brick-and-mortar store or from an online store. If online, then would retirees prefer to shop from a brick-and-mortar store that sold such items or from a website that sold the items? Or might they prefer to shop from an online catalog? A brick-and-mortar store would allow retirees to interact with people, whereas an online catalog would not. A brick-and-mortar store may sell products at a higher price than an online catalog, and retirees may value the social interaction more than the lower price. New Ventures Consulting would have to consider all of the available options before recommending a location.
Research also could reveal whether retirees are avid hobbyists. If they aren’t, then they may not spend much time shopping, even if they had money. For instance, retirees who enjoy woodworking or knitting may not discover their hobby until later in life. Until they discover their hobby, they may not need a hobby store. On the other hand, retirees who enjoy sports like bowling or target shooting may discover their hobby when they are younger. At that point, they may want a hobby store. New Ventures Consulting would have to verify the age of the retirees who shop there.
Research also would reveal whether retirees enjoy shopping in a brick-and-mortar store or from an online catalog. If a brick-and-mortar store, then would they prefer to shop alone or with others? If with others, then would they prefer to shop alone or with others? Many retirees enjoy shopping with others, but others prefer to shop for themselves. A brick-and-mortar store may accommodate both types of shoppers, and would likely attract more of the latter type. However, an online catalog might attract retirees who enjoy shopping with others.
Because of assumptions about retirees’ time and money, New Ventures Consulting’s recommendation does not take into consideration the wants and needs of retirees. Before recommending a new location, the company needs to examine its assumptions, consider all of the options, and determine how the answers to these questions would influence its decision.