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Assignment 2

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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

2

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

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