A Study on Consumer Preferences on National Express Young Person Card


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A Study on Consumer Preferences on
National Express Young Person Card
Executive Summary

By analysing the data collected from 80 questionnaires distributed to both international and British students in Leeds, this research project seeks to identify factors affecting the choice between Coach and Train for long distance travel. The project also seeks to analyse the factors affecting the choice between the Young Person’s Railcard and the NX2 discount card.
The primary factors affecting the choice between Coach and Train identified in this project were Price, Speed, Punctuality and Convenience. These factors all scored a mean rating of “Important.” Also worth noting is the fact that Advertising and Style were not considered important factors in making such choices.
Awareness for the Young Person’s railcard (86%) was significantly higher than NX2 (39%). The most significant awareness channel was through word of mouth for both cards. Again, advertising was shown to be relatively unimportant in the awareness and purchasing decisions of these cards.
Ownership levels were much higher for the Young Person’s railcard (60%) than for the NX2 (14%). However satisfaction levels for both cards were very similar. Both cards were also considered easy to get, as well as being good value for money. However both cards were reported as not having a cool design.
The most influential factors in purchasing a discount travel card are (in order) discount on fare, ease of use and then price. Very little difference was discovered between British and International students. Also the UK travel preferences of International students were not generally linked to their preferences in their home nation.
Our conclusions are that when choosing a method of long distance travel, and when purchasing a discount travel card, today’s students are not particularly affected by advertising or style. Students are interested mainly in the functional benefits of a particular mode of travel, or a discount card. Low price is obviously a highly influential factor. NX2 should use a communications strategy which emphasizes more the cost advantages of travelling by coach, and of purchasing an NX2 card, when compared to the Train and Young Person’s railcard as a method of public long-distance transport. However, when considering a communications strategy, expensive advertising should be avoided as it is unclear this will have a positive effect. Instead National Express should concentrate on promoting word of mouth amongst students to raise awareness and purchase levels of the NX2 card.
Content
Introduction……………………………………………………………………….4
Research Objectives………………………………………………………………6
Research Methodology……………………………………………………………8
Research Method…………………………………………………………….8
Survey Research Method…………………………………………………….8
Sampling Method…………………………………………………………...10
Survey Method……………………………………………………………...10
Data Collection Instrument…………………………………………………10
Questionnaire Test………………………………………………………….11
Data Collection……………………………………………………………...11
Data Analysis…………………………………………………………………….12
Limitations……………………………………………………………………….27
Conclusions and Recommendations……………………………………………..28
References………………………………………………………………………..31
Appendix…………………………………………………………………………32
Introduction
National Express is known in the UK as a company that operates coach routes between major cities. National Express is “Britains only scheduled coach network, carrying more than 16 million passengers each year to around 1200 destinations throughout England, Scotland and Wales.” (National express press pack, released Summer 2004) The National Express company faces major competition from the various companies that make up the British National rail network. “Over 1 billion passenger journeys were made on the UK national rail network alone in 2003.” (www.railwayforum.com/getfile.phpid=114 accessed 30/10/04) The National Travel Survey, available from http://www.statistics.gov.uk/statbase/Product.aspvlnk=3756, states on page 54 that of all long distance (50 miles or more) journeys in the UK 10.2% were made by train and only 2.1% were made by coach. It should be noted that some 75% of all long-distance journeys were made by automobile, either as a passenger or driver. Railway is the pref