Review 1. Hypothesis testing – Ho: and H1: – p-value vs α ⇒ if p-value < α : reject Ho if p-value > α : Not reject Ho 2. Frequency – Description of one variable 3. Cross - tabulation (nominal variables) – Description of more than one variable Data Analysis III T-test and ANOVA – Ho: variables in the table are NOT associated. – Magnitude of association : χ2 Objective Marketing Research Process 1. Problem Definition 2. Development of an Approach to the Problem 3. Research Design Formulation 4. Data Collection Analysis Analysis of of “Difference” “Difference” 1. T-test – Comparison between two groups 2. ANOVA(Analysis of Variance) 5. Data Analysis – Comparison among more than 2 groups 6. Report Preparation and Presentation 1. T-test • Promotion: Yes No • Introductory Example (Retail Store) Two Cases: Offering promotional deal, Offering regular price Managerial Interest: Sales Q: Are sales different between the two cases, when we offer promotion and when we do not? Significant Significant difference difference ?? • Sales Sales_1 = or ≠ Sales_2 H Hoo:: Sales_1 Sales_1 == Sales_2 Sales_2 H Sales_1 H11:: Sales_1 ≠≠ Sales_2 Sales_2 1 Structure of T-test • Variables: 2 variables Structure of T-test • Hypothesis – Variable 1(independent variable or grouping variable): Nominal scale / takes only two values – Variable 2(dependent variable): Interval or Ratio Scale • Testing the difference in variable 2 between the two groups categorized by variable 1 Appropriate Marketing Examples • Ex1. Sales person training program – Program 1 and 2 – Is the average performance of those who were trained by program 1 different from that of those who were trained by program2? – Ho: There’s no significant difference in dependent variable between different groups. – H1: There’s significant difference in dependent variable between different groups. • Decision rule – reject Ho if α > p-value – Not reject Ho if α < p-value Q1. How do you feel visiting Stonestown Mall after dark? Q2. Your gender is: (1) Male (2) Female 1 2 3 4 5 • Ex2. Stonestown Mall – Are the students’ perceptions on safety in Stonestown Mall different between female and male? Procedure of T-test Identify Identifyvariables: variables: 1. 1.grouping groupingvariable variable?? The Thevariable variableshould shouldhave haveonly onlytwo twovalues. values. (Nominal (Nominalscale) scale) 2. 2.dependent dependentvariable variable??Should Shouldbe bemeasured measuredby bymetric metricscales. scales. State StateHypotheses: Hypotheses: 1. nodifference differencebetween betweengroups groups 1.HHoo::no 2. 2.HH1::There’s There’sdifference differencebetween betweengroups groups 1 1. 1.Get Getthe thecomputer computeroutput output 2. 2.Compare Comparethe thep-value p-valuewith withα α very safe very unsafe T-test Using SPSS Go to the other handout IfIfp-value p-value<<α α Reject RejectHo Ho – How to do t-test in SPSS – How to interpret the results (computer output) IfIfp-value p-value>>α α Do Donot notreject rejectHo Ho 2