THE SPRINGVILLE

HERALD CASE
Presented by:
Percival C. Bordeos Jr
Jose Marie Jesus A. Gumpal
 BACKGROUND
■The Springville Herald
■New Subscriptions Forecasting Model
■Marketing Team

SURVEY
Paul Kravitz Lauren Alfonso
Market Research Director District Sales Manager
(n.d.). Retrieved from https://digitalnewspapers.org/newspaper/?paper=springville+herald
OBJECTIVE OF THE STUDY

■ How to increase new subscriptions and how those

customers who agreed to trial plans could be kept as
subscriber after their trial period ends.
■ Determine various characteristics of readers who were not
home-delivery subscribers.
 STATISTICAL METHODOLOGY

Primary Source

RANDOM DIGIT
Telephone Survey DIALING METHOD 500 SPRINGVILLE
E.g. 676, 759, 923 are available HOUSEHOLDS
in Springville + Last four digits
randomly selected to produce
telephone number
 94
- Refused to participate
- Could not be contacted
500 SPRINGVILLE - Not in service or belong
HOUSEHOLDS to non residences.
Questionnaires
1. Do you or a member of your household ever 8. The Springville Herald currently cost 50
purchase Springville Herald? (Yes or No)
cents on Monday-Saturday and S1.50 on
2. Do you receive the Springville Herald via Sunday for a total 4.50 per week. How much
home delivery? (Yes or No)
would you be willing to pay per week. How
3. Do you receive the Springville Herald: much would you be willing to pay per week to
(Monday-Saturday, Sunday Only, Everyday)
obtain home delivery for a 90 day trial
4. How often during the Monday-Saturday period?_______
period do you purchase the Springville Herald?
(Everyday, Most Days, Occasionally) 9. Do you read a daily newspaper other than
5. How often do you purchase the Springville the Springville Herald? ( Yes or No)
Herald on Sundays? ( Every Sunday, 2-3
Sundays a month, Once a month) 10. Would you want to obtain such a card
6. Where are you most likely to purchase the under the terms of this offer?
Springville Herald? ( Convenience store,
stationary, vending machine, supermarket, (Yes or No)
other)
7. Would you consider subscribing to the
Springville Herald for a trial period if discount
was offered? (Yes or No)
RESULTS AND CONCLUSION
 1. Do you or a member of your household ever purchase Springville
Herald? (Yes or No)

HOUSEHOLD THAT PURCHASE

SPRINGVILLE HERALD

No 54

Yes 352

Frequency

Result: Of the 406 respondents, only

Figure 1 Household that Purchased Springville Herald
352 said they purchase The total of 406 respondents.
Springville Herald.
 2. Do you receive the Springville Herald via home delivery? (Yes
or No)

SUBSCRIBERS OF SPRINGFIELD HERALD

HOME DELIVERY

No 216

Yes 136

Frequency

Figure 2 Household that Receives Springville Herald via Home Delivery.

Result: Of the 352 who answered Total of 352 Respondents

“They purchase the newspaper”, only

136 are subscribed for home
delivery.
 3. Do you receive the Springville Herald:
(Monday-Saturday, Sunday Only, Everyday)
Type of Subscription for Home
Delivery

Every Day 93

DELIVERY TIME
Sunday Only 25

Monday - Saturday 18

0 20 40 60 80 100

Result: Subscribers receive the FREQUENCY

newspaper everyday. Figure 3 Type of Subscription for Home Delivery. Total of 136
Respondents
 4. How often during the Monday-Saturday period do you purchase the
Springville Herald? (Everyday, Most Days, Occasionally)

Monday to Saturday Purchase

Occasinally 43

Most Days 95

Everyday 78

Result: Non-subscribers purchase 0 20 40 60 80 100

the newspaper most days to Figure 4 Purchase Behavior of Nonsubscriber - Saturday Edition
everyday. . Total of 216 Respondents
 5. How often do you purchase the Springville Herald on Sundays? ( Every
Sunday, 2-3 Sundays a month, Once a month)
Purchase Behavior of
Nonsubscribers on Sunday

Once a Month 24

2-3 Sundays a Month 54

Every Sunday 138

0 50 100 150

Figure 5 Purchase Behavior of Nonsubscriber - Sunday Edition

. Total of 216 Respondents
Result: Most Non-subscribers also
purchase the newspaper even on
Sundays
 6. Where are you most likely to purchase the Springville Herald? (
Convenience store, stationary, vending machine, supermarket, other)
Location of Purchase

Other 13

Supermarket 13

LOCATION
Vending Machine 21

Sationary Store 95

Convenience Store 74

0 20 40 60 80 100
FREQUENCY

Figure 6 Location of Purchase. Total of 216 Respondents

Result: Non-subscribers purchase
the newspaper on Stationary Stores
and Convenience stores
 7. Would you consider subscribing to the Springville Herald for a trial
period if discount was offered? (Yes or No)
Would Consider Trial Period
Subscription with Discount

No 170

Yes 46

0 50 100 150 200

FREQUENCY

Figure 7 Would consider trial period with Discount offered. Total of 216
Result: Non-subscribers wouldn’t Respondents
subscribe for a trial period even if
discount is offered.
8. The Springville Herald currently cost 50 cents on Monday-Saturday
and S1.50 on Sunday for a total 4.50 per week. How much would you be
willing to pay per week. How much would you be willing to pay per week
to obtain home delivery for a 90 day trial period?_______
Table 11 - How much Willing to Pay per Table 12 How much Willing to Pay per Week
Week
Mean 3.734782609
2.85 3.5 3.75 4 4.4
Standard Error 0.053112531
3 3.5 3.75 4 4.4 Median 3.75
3.15 3.5 3.75 4 Mode 3.75
3.2 3.6 3.8 4
Standard Deviation 0.360226713
3.25 3.6 3.8 4.1
3.3 3.6 3.8 4.1 Sample Variance 0.129763285
3.3 3.6 3.85 4.1 Kurtosis -0.20990427
Skewness -0.271247525
3.4 3.65 3.9 4.15 Range 1.55
3.4 3.75 3.9 4.2 Minimum 2.85
3.5 3.75 3.9 4.25 Maximum 4.4
Sum 171.8
3.5 3.75 3.95 4.3 Count 46
 Table 13 – Amount Willing to Pay Every Week

bin Frequency Cumulative %

Histogram
3 but not less than or equal 2 2 4.35% 1.5 1.5
4 but not less than or equal 3 35 80.43%

FREQUENCY
1 1
5 but not less than or equal 4 9 100.00%
0.5 0.5
More 0 100.00%
0 0
BIN

Frequency Cumulative %

bin Figure 11 Amount Willing to Pay Every Week

3
4
5
 9. Do you read a daily newspaper other
than the Springville Herald? ( Yes or No)
PURCHASERS WHO READ DAILY OTHER THAN SPRINGFIELD HERALD

No 214

Yes 138

Frequency

Result: Many of the respondents Figure 9 Read Daily Newspapers Other Than The Springville Herald.
Total of 352 Respondents
consider The Springville Herald as
their only “daily newspaper”.
 10. Would you want to obtain such a card under the terms of this offer?
(Yes or No)
Would Prepay 6 Months to Receive
Discount

No 286

Yes 66

Result: Long term subscribers are

not interested in having a “perks 0 50 100 150 200 250 300

card” in exchange of subscribing for Figure 10 Would pay 100$ prepaid for 6 months in exchange of a
“Perks Card”. Total of 352 Respondents
6 months prepaid for 100$
compared to 108$ regular payment.
Conclusion:
■ Based on data frequency, the range with the most answer is 4 but not less than or
equal to 3. The amount of price that the people are willing to pay per week is in the
range of 3 to 4 dollars with the mean of 3.73$
■ Majority of the readers are not subscribed for home delivery.
■ Most people doesn’t want to prepay for 6 months for 100$ even if they were to
receive restaurants discount cards.
■ Most non-subscribers purchase “The Springville Herald” most days, even on
Sundays as supported by Table 4 and Table 5 but they are not willing to commit for a
subscription even with discounts (Table/Figure 7).
■ Most of the non-subscriber get their newspaper in stationary stores and
convenience stores.
■ Majority of the respondents read the newspaper almost everyday but they are not
willing to commit for some reason. (most likely they are not always at home and
they want to have the liberty to buy the newspaper on their own)
■ Lasly, based on the results, we conclude that the respondents doesn’t believe in
“discount gimiks” enough to persuade them to join subscriptions.
Managerial Recommendation
Recommendation
■ We recommend that they do another survey that includes a question that
determines the reason why non-subscribers are not willing to subscribe even if they
read the newspaper almost everyday.
■ Lower the regular weekly subscription fee of $4.50 to $3.73 (mean).
■ Offer a monthly renewable subscription so there will be no commitment for semi-
annual and annual lock-in period. They can cancel anytime. To be paid monthly.
■ Trials should be free. Offer a 1 month free trial period.