Cathy Chen Marketing Research Term 1 2014-15

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MKTG103: Marketing Research Assignment #2 (20 points)

Question 1 (12 points)
1a (1 point). Advantage: Splitting the population into FWTC and FTC allows us to
determine if different segments of the population have different levels of awareness.
Stratification also leads to lower error. Disadvantage: Based on the sampling scheme,
one group may be over- or under-represented.

1b (1 point). Stratified Random Sampling

1c (1 point). Stratified sampling will lead to lower standard error.

1d (1 point). Advantage: Its an easier task for respondents. Disadvantage: Reminding
respondents of what products are available may affect their responses.

1e (1 point). Null: PFWC Before <= PFWTC Before ; Alternative: PFWC Before > PFWTC Before

1f (1 point). PFWTC Before = .24; PFWC Before = .36

p = (50*.24 + 50 * .36)/100=.3
standard error = sqrt((.30 .7)/50 + (.3.7)/50) = sqrt (.42/50) = sqrt(.0084) = .09165
Test statistic = (.36 - .24)/.09165 = 1.31. This is not significant at the .05 level (p=.09).
since the critical value is 1.645 (Z test, one tailed, p = .05).

1g (1 point). The relative sizes of each group in the population

1h (2 points). For FWTC:
p = 12 + 14/100 = .26
standard error = sqrt ((.26 * .74)/50 + (.26 * .74)/50) = sqrt (.3848/50) = sqrt(.007696)
= .0877
Test statistic = (0.28 - 0.24)/.0877= .456
This is not significant at the .05 level (critical value is 1.645)

For FWC:
P = 18+28/100 = .46
Standard error = sqrt((.46*.54)/50 + (.46*.54)/50) = sqrt(.4968/50) = sqrt(.009936)
= .0997
Test statistic = (0.56 - 0.36)/.0997 = 2.01
This is significant at the .05 level (critical value is 1.645)

We reject the null hypothesis that awareness rates are the same for FWC, but cannot
reject the null for FWTC. Therefore, the ad has significantly increased the awareness for
FWC but not for FWTC.

Cathy Chen Marketing Research Term 1 2014-15
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1I (2 points). The design is 2 groups (FWC vs. FWTC) x 2 time of measurement (before
vs. after). Independent variables are type of families and time of measurement.
Dependent variable is awareness. There are four conditions. Critique: may subject to
history effect that influences internal validity.

1J (1 point)

Emotional Rational
FWC
FWTC
2 factors and each with two levels. Ad copy (emotional vs. rational), type of families
(FWC vs. FWTC)

Question 2 (3 points)

2a (1 point). Test statistic = (40000-36000) /sqrt((10000^2+8100^2)/100) = 3.11. Since
the sample size is greater than 100, we can use Z test. We can then conclude that FWC
has significantly higher income than FWTC at the 99% confidence level. (one tail test,
critical value is 2.326)

2b (1 point). Test statistic = (37-45)/ sqrt((3.3^2+3.5^2)/100) = -16.63. Z test, one tailed
test, the critical value is 2.326. Therefore FWC has significantly lower age than FWTC at
the 99% confidence level.

2c (1 point). The FWC has a higher income and is younger, indicating that they may be a
more profitable segment to target. It may be worth looking at how valuable this segment
will be once children move out, as the households use of CSG may change dramatically.


Question 3 (5 points)
Please download the Assignment 2-CoastalStar dataset and use SPSS to analyze the data for
the questions below. Coastal Star Sales Corporation is a West Coast wholesaler that markets
leisure properties from several manufacturers. Coastal star has a 16-person sales force that sells
to wholesalers in a 6 state area. The dataset contains the combined sales from 6 states for two
years. Relevant tables of SPSS output need to be attached. Please use 5% significance level for
your statistic analyses unless stated otherwise.

a. (1 point) Are the current years sales significantly higher than the previous year for all
sales staff?

No. Not significantly different from each other. A paired sample t test should be used and the p
value is .693 (>.05).

Paired Samples Statistics

Mean N Std. Deviation Std. Error
Mean
Cathy Chen Marketing Research Term 1 2014-15
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Pair 1
Previous 743764.5000 16 479479.43232 119869.85808
Current 762214.5000 16 348766.44515 87191.61129


Paired Samples Correlations

N Correlation Sig.
Pair 1 Previous & Current 16 .950 .000

Paired Samples Test

Paired Differences t df Sig. (2-tailed)
Mean Std. Deviation Std. Error Mean 95% Confidence Interval of the
Difference
Lower Upper
Pair 1 Previous - Current -18450.00000 183446.20091 45861.55023 -116201.58039 79301.58039 -.402 15 .693


b. (2 points) What is the median age of the sales force at Coastal Star? Based on the median
age of the sales force, we can separate the sales force to two segments (young vs. old).
Do you observe any significant difference between the two age groups in terms of the
current years sales? How about previous years sales?

The median age is 42.5 as shown in the descriptive statistics below.
Descriptives

Statistic Std. Error
Age
Mean 44.875 3.2988
95% Confidence Interval
for Mean
Lower Bound 37.844

Upper Bound 51.906

5% Trimmed Mean 44.861

Median 42.500

Variance 174.117

Std. Deviation 13.1953

Minimum 26.0

Maximum 64.0

Range 38.0

Interquartile Range 24.5

Skewness .156 .564
Kurtosis -1.291 1.091

For both current years sales and last years sales, the older segment (>=43) has more sales. For
current year sales, older sales force had higher sales than younger sales force (876,845 vs.
647,584). But this difference is not statistically significant (p=.207). For previous year sales,
older sales force also had higher sales than younger sales force (954019 vs. 533509). But this
difference is only marginally significant with a p value of .091.

Cathy Chen Marketing Research Term 1 2014-15
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Group Statistics

Age N Mean Std. Deviation Std. Error
Mean
Previous
>= 43.0 8 954019.6250 591633.81954 209174.14289
< 43.0 8 533509.3750 203883.15065 72083.57920
Current
>= 43.0 8 876845.0000 434827.50973 153734.74039
< 43.0 8 647584.0000 203821.81714 72061.89453

Independent Samples Test

Levene's Test for Equality of
Variances
t-test for Equality of Means
F Sig. t df Sig. (2-tailed) Mean
Difference
Std. Error
Difference
95% Confidence Interval of the
Difference
Lower Upper
Previous
Equal variances assumed 5.639 .032 1.901 14 .078 420510.25000 221246.16255 -54015.57419 895036.07419
Equal variances not
assumed

1.901 8.639 .091 420510.25000 221246.16255 -83185.28821 924205.78821
Current
Equal variances assumed 2.892 .111 1.350 14 .198 229261.00000 169786.00368 -134893.76048 593415.76048
Equal variances not
assumed

1.350 9.934 .207 229261.00000 169786.00368 -149384.66745 607906.66745




c. (2 points) Did you observe any significant difference between the two age groups in
terms of the change of the two years sales (difference between current year and previous
years sales?

A new variable change is created as the difference between current year and previous
years sales. An independent t test shows that the change is significantly smaller for the
older segment than for the younger segment (-77,174 vs. 114,074, p = .031). The older
segment actually had lower sales in current year than in previous year.
Group Statistics

Age N Mean Std. Deviation Std. Error
Mean
change
>= 43.0 8 -77174.6250 190373.67069 67307.25675
< 43.0 8 114074.6250 122350.54176 43257.44888




Independent Samples Test

Levene's Test for Equality of
Variances
t-test for Equality of Means
F Sig. t df Sig. (2-tailed) Mean
Difference
Std. Error
Difference
95% Confidence Interval of the
Difference
Lower Upper
change
Equal variances assumed 1.596 .227 -2.390 14 .031 -191249.25000 80009.21006 -362851.93866 -19646.56134
Equal variances not
assumed

-2.390 11.940 .034 -191249.25000 80009.21006 -365671.77036 -16826.72964