INTERNAL EXAMINATION: SEP – OCT’ 2019

MBA Batch 2019 – 21: Semester - III

Subject Code: 18JBS315 Subject Name: Marketing Analytics

Duration: 2 Hrs Marks: 50

SECTION –A
1. Answer any TWO of the following Three Questions: 2X8=16
a. An advertising campaign was carried out by a consumer product company in various media to increase
brand awareness for their range of detergents. A paired sample t test was conducted by measuring the pre and
post campaign awareness in percentage. The table below shows the results of t-test. Construct suitable
hypothesis to prove if the advertising campaign is effective or not by interpreting the results from table
below?

t-Test: Paired Two Sample for

Means

  post_advt pre_advt
Mean 59.98 52.23
655.386532 105.122713
Variance 7 6
Observations 200 200
Pearson Correlation 0.42304019
Hypothesized Mean Difference 0
df 199
4.72337272
t Stat 4
P(T<=t) one-tail 2.18728E-06
1.65254674
t Critical one-tail 6
P(T<=t) two-tail 4.37456E-06
1.97195654
t Critical two-tail 4  

H0: There is no significant difference in awareness before and after the advertising campaign
Ha: There is significant difference in awareness before and after the advertising campaign.

Since p value (0.00000437) is less than 0.05, null hypothesis is rejected and we can conclude that advertising
had a significant impact in increasing brand awareness.

b. Explain the components of summary statistics.

Mean
Median
Mode
Maximum
Minimum
Range
Skewness
Kurtosis
Standard Deviation
Variance
Standard Error
25th Percentile
50th Percentile
75th Percentile
Inter Quartile Range

c. Figure below demonstrates the home selling price distributions of five cities in the USA, including
Chicago, Las Vegas, New York, Texas & Washington. Discuss & compare the home prices of these cities.

The lowest median selling prices are in Washington and highest is in Texas. We can summarize the
median prices as follows Median Texas > Median Chicago >Median Las Vegas >Median New York> Median Washington
 Las Vegas has a large 4th quartile indicating many homes have high selling prices. This is also reflected
in one outlier price. We can summarize the dispersion as follows d las vegas > d chicago > d texas > d washington > d
New York

New York AND Washington has the least SD and most of the home prices are clustered around the
median.
There are two outliers in New York home prices both on the higher side and lower side. One outlier in
case of Las Vegas.

SECTION-B
2. Answer any TWO of the following Three questions: 2X12=24

a. Classify Business Analytics into 3 categories of Descriptive, Predictive and Prescriptive and discuss each
one of them.

Descriptive Analytics
Most businesses start with descriptive analytics -the use of data to understand past and current
business performance and make informed decisions. These techniques categorize, characterize,
consolidate, and classify data to convert it into useful information for the purposes of understanding
and analyzing business performance. Descriptive analytics summarizes data into meaningful charts
and reports, for example about budgets, sales, revenues, or cost. This process allows managers to
obtain standard and customized reports and then drill down into the data and make queries to
understand the impact of an advertising campaign for example, review business performance to find
problems or areas of opportunity, and identify patterns and trends in data. Typical questions that
descriptive analytics help answer are “How much did we sell in each region?” “ What was our
revenue and profit last quarter?”

Predictive Analytics
Predictive analytics seeks to predict the future by examining historical data, detecting patterns or
relationships in these data, and then extrapolating these relationships forward in time. For example, a
marketer might wish to predict the response of different customer segments to an advertising
campaign, or a fashion manufacturer might want to predict next season’s demand for fashion of a
specific color and size. Using advanced techniques, predictive analytics can help to detect hidden
patterns in large quantities of data to segment and group data into coherent sets to predict behavior
and detect trends.

Prescriptive Analytics

Prescriptive analytics uses optimization to identify the best alternative to minimize or maximize some
objective. Prescriptive analytics is used in many areas of business including operations, marketing,
and finance. For example, we may determine the best pricing and advertising strategy to maximize
revenue. The optimal amount of cash to store in an ATM, or the best mix of investments in a
retirement portfolio to manage risk. Prescriptive analytics addresses questions such as “How much
should we produce to maximize profit.?”. “ What is the best way of shipping goods from our factories
to minimize costs?”.
b. A sample of 100 individuals were asked to evaluate their preferences for three new proposed energy
drinks in a blind taste test. The sample space consists of two types of outcomes corresponding to each
individual: gender and brand preference. The table below shows the cross tabulation of the results.

Count of Respondent Column Labels

(Observed)
Row Labels Brand 1 Brand 2 Brand 3 Grand Total
Female 9 6 22 37
Male 25 17 21 63
Grand Total 34 23 43 100
Expected Frequency Brand 1 Brand 2 Brand 3 Grand Total
Female 12.58 8.51 15.91 37
Male 21.42 14.49 27.09 63
Grand Total 34 23 43 100

Calculate the Chi-square value and determine if the proportion of males who prefer a particular brand is no
different from the proportion of females.at the 5% level of significance.

Chi Square Statistic Brand 1 Brand 2 Brand 3 Grand Total

Female 1.02 0.74 2,33 4.09
Male 0.60 0.43 1.37 2.40
Grand Total 1.62 1.18 3.70 6.49

Chi square critical value 5.99146455

Because the estimated chi-square value exceeds the critical value, we reject the null hypothesis that the brand
preference is not influenced by Gender.

What would be your recommendations for advertising campaigns based on the results?

The advertising campaigns should be separate for males and females as the brand preference is influenced by
Gender.

Chi-square table

df 0.995 0.99 0.975 0.95 0.9 0.1 0.05 0.025 0.01 0.005
1 -- -- 0.001 0.004 0.016 2.706 3.841 5.024 6.635 7.879
2 0.01 0.02 0.051 0.103 0.211 4.605 5.991 7.378 9.21 10.6
3 0.072 0.115 0.216 0.352 0.584 6.251 7.815 9.348 11.35 12.84
4 0.207 0.297 0.484 0.711 1.064 7.779 9.488 11.14 13.28 14.86
5 0.412 0.554 0.831 1.145 1.61 9.236 11.07 12.83 15.09 16.75
6 0.676 0.872 1.237 1.635 2.204 10.65 12.59 14.45 16.81 18.55
7 0.989 1.239 1.69 2.167 2.833 12.02 14.07 16.01 18.48 20.28
8 1.344 1.646 2.18 2.733 3.49 13.36 15.51 17.54 20.09 21.96
9 1.735 2.088 2.7 3.325 4.168 14.68 16.92 19.02 21.67 23.59
10 2.156 2.558 3.247 3.94 4.865 15.99 18.31 20.48 23.21 25.19

c. The marketing manager of DataCom Inc. wants to predict the annual revenues generated by its
customers given certain characteristics of them. The manager runs a regression model on Years of
 Loyalty, Years Employed, Years of Marriage, Gender and Average Number of Products Purchased. The
output of regression model is given below:

Regression Statistics  

0.87477
Multiple R 8

0.76523
R Square 7

0.73589
Adjusted R Square 2

Standard Error 5652.67

Observations 46

ANOVA          

  df SS MS F Significance F

26.0769686
Regression 5 4166144430.17 833228886 3 0.00

31952674.3
Residual 40 1278106972.78 2    

Total 45 5444251402.96      

P-
  Coefficients Standard Error t Stat value Lower 95% Upper 95%

Intercept 25801.11 2488.444433 10.36836776 0.00 20771.77322 30830.44083

Years of Loyalty -208.634 237.4500522 -0.878644716 0.38 -688.5386908 271.2702232

Years Employed 638.4924 141.0373752 4.527114617 0.00 353.4451946 923.5395309

Years of Marriage 1604.962 408.1861998 3.931935175 0.00 779.9865937 2429.93676

Gender* -1627.26 1753.634545 -0.927935442 0.36 -5171.487268 1916.967976

Average Number of
Products Purchased 183.2034 97.86866728 1.871931586 0.07 -14.59650537 381.0034045

*Note: Female = 0, Male = 1

a) Build the model to predict the annual revenues of the company.

 Annual Revenues = 25801.11 + 638.4924*years employed + 1604.962*Years of
marriage+183.2034*Average number of products purchased.
b) Interpret the model output.
R Square = 0.765. 76.5% of the variation in dependent variable is explained by the independent
variables.
Intercept and 3 independent variables are significant namely, Years employed, years of marriage and
average number of products purchased.
c) According to the model, is there a difference between the mean revenues earned by males & female
customers at DataCom? Justify your answer.
There is no significant difference in revenues earned by males and female customers as gender is
insignificant variable. p value is more than 0.05.
d) Predict a 95% confidence interval of the annual revenue of a female customer who has been purchasing
for last 10 years; is married for 8 Years and is employed for 12 years.
Annual Revenue = 25801.11 + 638.4924*12+1604.962*8 = 25801.11+7661.9088+12839.696 =46302.71

SECTION-C
3. Case study - Compulsory: 1X10=10

KUMAR SOFT DRINK BOTTLING COMPANY

Kumar Soft Drink Bottling Company came into operation in 1984 and was operating in the NCR of Delhi
and in the states of Punjab and Haryana. The turnover of the company was ~ 1.5 crore in 2010 and it was
growing at the rate of 10 per cent per annum. The chairman 'of the company, Mr. Kumar, wanted to examine
whether the flavour of the soft-drink and the price level had any impact upon the sales. He wanted this
because the results could have implications for changing the product mix if required. Three types of flavours
were considered, namely, pineapple, mango and orange. Further, three level of prices were taken into
considerations Rs.10, Rs.12 and Rs.14. An experiment was conducted by randomly choosing a sample of
18 stores where the flavour of the soft drink and the price level were varied. The experiment period was one
month.
Coding for flavor: Pineapple =1
Mango =2
Orange =3
Coding for price: Rs.10/- =1
Rs.12/- =2
Rs.14/- =3

Questions

Is there any impact of the flavor or the price level independently upon the sales? Conduct the test using a 5 percent
level of significance. Construct the hypothesis and interpret the results.

A one way ANOVA was run between flavor and sales. The results are summarized below:

Anova: Single
Factor

SUMMARY
Groups Count Su Average Variance
 m
3.88333333 2.16966666
Pineapple 6 23.3 3 7
3.31666666 0.88566666
Mango 6 19.9 7 7
3.26666666 1.43066666
Orange 6 19.6 7 7

ANOVA
Source of
Variation SS df MS F P-value F crit
1.40777777 0.70388888 0.47072373 0.63347036
Between Groups 8 2 9 3 2 3.68232
1.49533333
Within Groups 22.43 15 3

23.8377777
Total 8 17        

H0: Sales is not dependent on type of flavor.

Ha: Sales is dependent on type of flavor.

Since p value (0.633) is more than 0.05, H0 cannot be rejected. Hence flavor has no influence on sales.

A one way ANOVA was run between price and sales. The results are summarized below.
Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Rs10 6 28.7 4.783333 0.661667
Rs12 6 20 3.333333 0.326667
Rs 14 6 14.1 2.35 0.183

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 17.98111111 2 8.990556 23.02647 0.000027 3.68232
Within Groups 5.856666667 15 0.390444

Total 23.83777778 17        

H0: Sales is not dependent on Price.

Ha: Sales is dependent on type of Price.

Since p value (0.000027) is less than 0.05, H0 can be rejected. Hence Sales is influenced by Price.