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Marketing Research

Marketing Research. Aaker, Kumar, Day Seventh Edition Instructor’s Presentation Slides. Chapter Eighteen. Hypothesis Testing: Means and Proportions. Hypothesis Testing For Differences Between Means. Commonly used in experimental research

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Marketing Research

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  1. Marketing Research Aaker, Kumar, Day Seventh Edition Instructor’s Presentation Slides

  2. Chapter Eighteen Hypothesis Testing: Means and Proportions

  3. Hypothesis Testing For Differences Between Means • Commonly used in experimental research • Statistical technique used is analysis of variance (ANOVA) Aaker, Kumar, Day

  4. Hypothesis Testing For Differences Between Means (Cont.) Hypothesis Testing Criteria Depends on • Whether the samples are obtained from different or related populations • Whether the population is known on not known • If the population standard deviation is not known, whether they can be assumed to be equal or not Aaker, Kumar, Day

  5. The Probability Values (P-value) Approach to Hypothesis Testing • P-value provides researcher with alternative method of testing hypothesis without prespecifying  • Largest level of significance at which we would not reject ho Aaker, Kumar, Day

  6. The Probability Values (P-value) Approach to Hypothesis Testing (Contd.) Difference Between Using  and p-value • Hypothesis testing with a prespecified  • Researcher is trying to determine, "is the probability of what has been observed less than ?" • Reject or fail to reject ho accordingly Aaker, Kumar, Day

  7. The Probability Values (P-value) Approach to Hypothesis Testing (Contd.) Using the p-Value • Researcher can determine "how unlikely is the result that has been observed?" • Decide whether to reject or fail to reject ho without being bound by a prespecified significance level • In general, the smaller the p-value, the greater is the researcher's confidence in sample findings Aaker, Kumar, Day

  8. The Probability Values (P-value) Approach to Hypothesis Testing (Contd.) • P-value is generally sensitive to sample size • A large sample should yield a low p-value • P-value can report the impact of the sample size on the reliability of the results Aaker, Kumar, Day

  9. Analysis of Variance (ANOVA) • Response variable - dependent variable • Factors - independent variables • Treatments - different levels of factors Aaker, Kumar, Day

  10. One - Factor Analysis of Variance • Studies the effect of 'r' treatments on one response variable • Determine whether or not there are any statistically significant differences between the treatment means 1, 2,... R • Ho: all treatments have same effect on mean responses • H1 : At least 2 of 1, 2 ... r are different Aaker, Kumar, Day

  11. One - Factor Analysis of Variance (Contd.) • To Test Hypothesis, Compute the Ratio Between the "Between Treatment" Variance and "Within Treatment" Variance Between treatment variance SSr =  np (xp - x )2 P=1 Where • SSr = treatment sums of squares • R = number of groups • Np = sample size in group ‘p’ • X = overall Mean Aaker, Kumar, Day

  12. One - Factor Analysis of Variance (Contd.) • To Test Hypothesis, Compute the Ratio Between the "Between Treatment" Variance and "Within Treatment" Variance (Contd.) Between variance estimate (MSSr) MSSr = SSr/(r-1) Within-treatment variance SSu =  (xip - xp)2 P i Aaker, Kumar, Day

  13. One - Factor Analysis of Variance (Contd.) • To Test Hypothesis, Compute the Ratio Between the "Between Treatment" Variance and "Within Treatment" Variance (Contd.) Within variance estimate (MSSu) MSSu = SSu/(N-r) Where N = Total Sample Size Aaker, Kumar, Day

  14. One - Factor Analysis of Variance (Contd.) • To Test Hypothesis, Compute the Ratio Between the "Between Treatment" Variance and "Within Treatment" Variance (Contd.) Total variation (SSt) SSt = SSr + SSu F-statistic F=MSSr MSSu Aaker, Kumar, Day

  15. One - Factor Analysis of Variance (Contd.) P-value • Probability that the F-ratio* would be larger than the calculated F-ratio*, given the null hypothesis Aaker, Kumar, Day

  16. Interaction Effect • Impact of one treatment will not be the same for each condition of the other treatment • Hypothesis of no interaction can be tested using F-ratio for interaction F-ratio = MSS interaction MSS unexplained Aaker, Kumar, Day

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