Problem N° 06

In the article "Shelf-Space Strategy in Retailing," which was published in

Proceedings-.Southern Marketing Association, the effect of shelf height in
supermarkets on sales of canned dog food was investigated. Over a period of
8 days , an experiment was conducted in a small super market on the sales of
a brand of dog food known as Arf and three levels of shelf height were used: at
the knees, at the waist and at the eyes. Each day the height of the shelf on
which the food was placed was randomly changed three times.

The remaining sessions of the gondola containing the dad brand were filled with
a mix of food brands, which were both familiar and unfamiliar to consumers in
that specific geographic area. Daily sales, expressed in hundreds of dollars of
Arf food, are prepared for the three shelf heights. Based on data. Is there a
significant difference in the average daily sales of that food, based on shelf
height? Use a significance level of 0.01.

Shelf height

Knee Level Waist Level Eye level

77 88 85
82 94 85
86 93 87

78 90 81

81 91 80
86 94 79
77 90 87
81 87 93

Calculating
Hypothesis

H0: µ1=µ2= µ3 no significant difference in the average sales

H1: µ1 ≠ µ2 ≠ µ3 there is a difference in at least an average of the sales.

648 727 677

Calculated Yi

Calculating No. of repetitions n=r

8 8 8
n=r= 24

Calculated average for each shelf height = Yi

81 90.875 84.625

Calculated average Total = Ytotal 85. 5

APPLYING ANOVA FOR THE DAILY SALES/SHELF HEIGHT FACTORS

One-factor analysis of variance

SUMMARY
Groups Account Sum Average Variance

Knee Level 8 648 81 13.1428571

Waist Level 8 727 90.875 6.98214286
Eye level 8 677 84.625 21.125
Average 85.5

ANALYSIS OF VARIANCE
FV SC GL CM Fcal Probability F.tab.
Height levels 399.25 2 199.625 14.518 0.0001099 5.78041569
Error 288.75 21 13.75

Total 688 23

CV 0.043
CV% CV%
CV% CV%
CV% CV%
CV% CV%
CV% CV%
CV% CV% 4.34

Ftab 5.780
Fcal 14.518
Analysis of the problem: Since Fcalis greater than Ftab, H0is rejected
and H1is approved, i.e., there is a significant difference in the average daily
sales of Arf food. Depending on the height at which the product is located. It is
also noticeable that the height of the shelf at the waist is the one with the
highest sales gain over the other heights.