Comfort Delgro Case
To find out the above objectives, primary and secondary data have to be collected through Quantitative Research to get statistical evidence on the effectiveness of the flat-fare option and how it helps boost CD’s revenue. Secondary data could be …show more content…
How many new sign ups are there upon the introduction of flat-fare option?
[This would show how Comfort Delgro’s flat-rate option has helped to increase its user base, gaining demand from Grab and Uber, and eventually increasing CD’s market share and revenue]
An experimental research on existing Comfort Delgro App users could be done by running a randomized-controlled trials simultaneously with randomly assigned control and test groups to capture the cause-and-effect relationship – if flat-fare option during different timing of the day is effective in increasing revenue. Controlling for extraneous variables, 2000 CD App users are randomly chosen as our target group. Using simple random sampling, 500 users from the target group are randomly chosen to form Control Group, Test Group 1, 2 and 3 respectively, and only users from the assigned groups have access to the fare options as described in Table 1. For simplicity, assuming that any particular day of the month made no difference in users’ desire to use the app for bookings, no promotions are ongoing during the trial and any significant differences in the revenue could be related to the use of flat-fare option with no external factors causing the revenue change due to its large sample size. The trial is done over a 1-month period, where the independent variables in each test group is adjusted for to examine its direct effect on CD’s revenue, holding everything else constant. To reduce any biasness, we make this a double-blind test since the app system would be fair and users would not know that they are chosen for this trial. Hence, they would think that the flat-fare option is available for everyone so the way they use the app for booking is not affected. There is also no need to deal with drop-outs with a double-blind test. The purpose of having Test Group 1 to 3 is to compare the revenue changes for launching flat-fare option during different timings of the day – if the optimal time is peak, non-peak hours or