MARKETING RESEARCH

Topic 6.
COMMERCIAL EXPERIMENTATION. PART II. ANOVA WITH
2 OR 3 FACTORS.

Lecturer: Inna Alexeeva A.

inna.alexeeva@uneatlantico.es
6.6. Factorial Design – with 2 Factors
Formula to apply:

Yijk = EG + ETi + ETj + EIij + EAijk

Yijk = sales of the test unit k with i level of treatment 1 and j level of treatment 2

EG = global effect

ETi / ETj = effect of treatment i / j incremental regarding global effect EG

EAijk = random effect

EIij = interaction effect ij incremental regarding EG

I / j = treatment i / j i = 1, ….. b k = 1, ….. m

ij = interaction j = 1, ….. t

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6.6. Factorial Design – with 2 Factors

Yj = N(µij, σ) (Y1ij, Y2ij, … Yijm)

ഥ+ 𝒀
𝒀𝒊𝒋𝒌 = 𝒀 ഥ𝒊 − 𝒀
ഥ + 𝒀
ഥ𝒋 − 𝒀
ഥ + 𝒀
ഥ 𝒊𝒋 − 𝒀
ഥ𝒊 − 𝒀
ഥ𝒋 + 𝒀
ഥ +(𝒀𝒊𝒋𝒌 − 𝒀
ഥ 𝒊𝒋 )

SCT
𝟐
ഥ
෍ ෍ ෍ 𝐘𝐢𝐣𝐤 − 𝐘
𝐢 𝐣 𝐤

ഥ𝐢 − 𝐘
= 𝐭𝐦 ෍ 𝐘 ഥ 𝟐 ഥ𝐣 − 𝐘
+ 𝐛𝐦 ෍ 𝐘 ഥ 𝟐 ഥ𝐣𝐢 − 𝐘
+𝐦෍෍ 𝐘 ഥ𝐢 − 𝐘
ഥ𝐣 + 𝐘
ഥ 𝟐

𝐢 SCT1 𝐣 SCT2 𝐢 𝐣 SCInt

𝟐
ഥ𝐢𝐣
+ ෍ ෍ ෍ 𝐘𝐢𝐣𝐤 − 𝐘
𝐢 𝐣 𝐤
SCR
3
6.6. Factorial Design – with 2 Factors

The planned hypothesis estimate equality or inequality of the found

measures:
 The null hypothesis assumes that the treatments j DON’T produce
significate effects on the Y (sales).
H 0: µ 1 = µ 2 … µ k

 The alternative hypothesis assumes that the treatments j DO produce

significate effects on the Y (sales).
H1: ∃ µ1 ≠ µ2 for i ≠ j

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6.6. Factorial Design – with 2 Factors

Degrees of Mean
Statistical F
Variance Sum of squares, SS freedom, squares, MS = F value
value
DF SS/DF

ഥ𝒊 − 𝒀
ഥ 𝟐 SS 𝑇1 MS 𝑇1
Treatment 1 𝒕𝒎 ෍ 𝒀 b-1 Fb-1, r
b−1 MSR
𝒊=𝟏

ഥ𝒋 − 𝒀
𝒃𝒎 ෍ 𝒀 ഥ 𝟐 SS 𝑇2 MS 𝑇2
Treatment 2 t-1
t−1 MSR
Ft-1, r
𝒋=𝟏

ഥ 𝒋𝒊 − 𝒀
𝐦෍෍ 𝒀 ഥ𝒊 − 𝒀
ഥ𝒋 + 𝒀
ഥ 𝟐 SS𝐼 MS𝐼
Interaction (b–1)(t-1)
MSR
F(b-1)(t-1), r
𝐢 𝐣 (b–1)(t−1)

𝟐 SSR
ഥ𝒊𝒋
෍ ෍ ෍ 𝒀𝒊𝒋𝒌 − 𝒀
Residual b*t(m-1) = r
𝐢 𝐣 𝐤 𝑟

𝟐
ഥ
෍ ෍ ෍ 𝒀𝒊𝒋𝒌 − 𝒀
Total (b*t*m)-1
𝐢 𝐣 𝐤

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6.7. Factorial Design – with 3 Factors
Mean Statistical F
Variance Sum of squares, SS DF F value
squares, MS value

ഥ𝒊 − 𝒀
𝒕𝒎 ෍ 𝒀 ഥ 𝟐 SS 𝑇1 MS 𝑇1
Treatment 1 b-1 Fb-1, r
𝒊=𝟏 b−1 MSR

ഥ𝒋 − 𝒀
𝒃𝒎 ෍ 𝒀 ഥ 𝟐 SS 𝑇2 MS 𝑇2
Treatment 2 t-1 Ft-1, r
𝒋=𝟏 t−1 MSR

ഥ𝒌 − 𝒀
𝒃𝒕 ෍ 𝒀 ഥ 𝟐 SS 𝑇3 MS 𝑇3
Treatment 3 m-1 Fm-1, r
𝒌=𝟏 m−1 MSR

Interaction 1 ഥ 𝒋𝟏𝒊𝟏 − 𝒀
𝐦෍෍ 𝒀 ഥ𝒊 − 𝒀
ഥ𝒋 + 𝒀
ഥ 𝟐 SS𝐼 MS𝐼1
(b–1)(t-1) F(b-1)(t-1), r
(T1-T2) 𝐢 𝐣 (b–1)(t−1) MSR

Interaction 2 ഥ 𝒋𝟐𝒊𝟐 − 𝒀
𝐦෍෍ 𝒀 ഥ𝒊 − 𝒀
ഥ𝒋 + 𝒀
ഥ 𝟐 SS𝐼 MS𝐼2
(b–1)(m-1) F(b-1)(m-1), r
(T1-T3) 𝐢 𝐣 (b–1)(m−1) MSR

Interaction 3 ഥ 𝒋𝟑𝒊𝟑 − 𝒀
𝐦෍෍ 𝒀 ഥ𝒊 − 𝒀
ഥ𝒋 + 𝒀
ഥ 𝟐 SS𝐼 MS𝐼3
(t–1)(m-1) F(t-1)(m-1), r
(T2-T3) 𝐢 𝐣 (t–1)(m−1) MSR

ഥ 𝒊𝒋
෍ ෍ ෍ 𝒀𝒊𝒋𝒌 − 𝒀
𝟐
b*t(m-1) = SSR
Residual
𝐢 𝐣 𝐤 r 𝑟
𝟐
ഥ
෍ ෍ ෍ 𝒀𝒊𝒋𝒌 − 𝒀
Total (b*t*m)-1
𝐢 𝐣 𝐤
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It’s highly recommended to do many
different exercises to understand this
type of analysis. Please, check the
additional material.