projecteverest

Experiment Results

[JAN 19][COLLECTION] Offer Test (a) Expensive Hotels

Reference to experiment post

https://projecteverest.crowdicity.com/post/808340

Lean Phase: Problem Definition

Purpose: To gain a deeper understanding of how expensive hotel employees, managers and owners personally feel about the waste situation in Timor Leste and how their business approaches waste management.

The aim of this experiment was to gain information in regards to:

  • Current waste management practices

  • Individual pain points in regards to waste

  • Ideas for waste disposal and management solutions

Abstract

Our conclusions from the survey showed that our initially arbitrary distinction of cheap and expensive hotels (below and above $70) was validated in the much higher interest rate that was seen in Expensive hotels. Every Expensive hotel manager or owner saw the value of having a clean environment and 63.6% of the customer segment said that they paid for waste disposal and didn't have a reason to separate rubbish. This market sector had a 81.8% rate of wanting a solution and as a result met the green light metric of above 15%. Based on this experiment Expensive hotels are a customer segment that should be targeted by ERS.

Assumptions/ Problem Centric message:

Expensive hotels in the Dili area and surrounds would be interested in a solution to address the waste management problem in their community.

Results:

Our conclusions from our survey show that Expensive Hotels had 2 major pain points:

  • Waste on the street (45.5%)

  • Reliability of pickup (27.3%)

Waste Disposal:

Every Expensive Hotel manager/owner we spoke to saw high touristic value in having a clean environment.

63.7% of cases either used their own employees or paid for an external waste collection to occur, compared to the 36.4% who used the cheaper municipal/government services.

This highlights that the latter does not deliver enough value for this segment, justifying 63.7% of the sample to pay for an alternate service.

Waste Separation:

  • No reason to separate (63.6%)

  • No (18.2%)

  • Yes (18.2%)

Only one expensive hotel separates their waste. The other respondents suggested they knew the value of separation although believe that there is not much point in doing so due to all waste ending up in Tibar (no other viable options).

Most Common Type of Waste:

  • Food (28%)

  • Plastic (24%)

  • Cans (20%)

  • Glass (16%)

  • Paper (12%)

Waste Solutions:

  • Education (45.5%)

  • Government (36.4%)

  • Recycling (9.1%)

  • None Stated (9.1%)

The majority of respondents identified that education/awareness and the government would provide the solutions to waste management. An improved collection service was mentioned by 60% of interviewees with fines and taxes being mentioned by 20%.

Validated Learning:

[Green Light]

The offer for a potential solution successfully met the required Green light metric of 15%. Although being a small market, out of those interviewed 81.8% were interested in a recycling solution; validating a desire for a solution in the waste management space. This has matched the experiment hypothesis and confirmed the assumption that expensive hotels in Dili would be willing to engage in a solution for the waste problem. The solution itself is open to interpretation as the questions we asked were of a broad nature and due to this there are many potential business opportunities for ERS moving forward. 

Note:

A uniform survey was carried out amongst all subjects. This was in the form of an electronic survey which we read out in face to face interviews. This may have involved potential confirmation biases in the form of prompting of answers. However, it has been determined that this potential bias is not significant as to influence the integrity of the experiment result.

These experiment results did not involve interviewing Hotel Timor, the largest hotel and most influential in Dili. This is due to the fact that they are a current customer and we are already aware of their waste segregation methods, their passion for recycling and their willingness to pay for a solution. We are conducting an interview over the next week to touch base with them, however it won’t be run as an offer test.

Next Move:

This experiment received positive results in relations to people being interested in solutions for the waste problem. The actions on therefore would be ways to validate the customer segment. In doing so there would need to be identifying the potential early adopters and undertaking more market research. Another step forward is to create a UVP for which ERS can use into the future.

 

 

Note in terms of the graph (see attached image)- this graph is to prove the validity of the expensive and cheaper hotel segmentation. We originally segmented based on a cut off of $70 per night. As evident above, the expensive hotels on the right hand side all fall into the high price/high interest quadrant which proves that the more expensive a hotel room is, the more likely they are to be interested in a recycling solution. The only outlier being JL Villa which already has their own recycling program. There could be one change made to this distinction and that is that the $60 per night hotel rooms (Hotel California and Novo Horizonte) are moved into the expensive hotel category. This is because for these two hotels and Adelaide’s Lodge, we only spoke to employees and not managers or owners for offer testing. Therefore, we could not determine if their business was truly interested or not.

 

edited on 29th January 2019, 00:01 by Oliver Barnes

Rose Gooding 4 months ago

Status label added: Experiment Results

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Fiona Aaron 4 months ago

This is great. Based on this image and results, i'm assuming that cheap hotels aren't a customer segment that will be pursued in Feb?

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