INDIAN INSTITUTE OF MANAGEMENT BANGALORE

RMD; PGP – IV (2021-2022)

Case – One-way ANOVA

Case background: Reliance Trends retail store wanted to examine the effect of in-store
promotion on sales. To address this, the company hired a MR consultant. The MR consultant
collected data with an Experiment as described below.

Experiment:
The data (refer data sheet) were generated by an experiment in which the department store
chain wanted to examine the effect of in-store promotion on sales. In-store promotion was
manipulated at three levels: high (1), medium (2), and low (3). Thirty stores were randomly
selected, and five stores were randomly assigned to each treatment condition, as shown in
data sheet. The experiment was run for two months. Sales in each store were measured,
normalized to account for extraneous factors (store size, traffic etc.), and converted to a 1 –
to– 10 scale Metric Scale (higher numbers denote higher sales).

Assignment questions

1. Do the different levels of in-store promotion have effects on sales?

2. Managerial implication of results of Q1.