STATISTICAL ANALYSIS-

DELI DEPOT EXAMPLE

DR. SK LAROIYA
UNIVERSITY OF DELHI
AND
AMITY BUSINESS SCHOOL
 THE STUDENTS OF A BUSINESS SCHOOL CONDUCTED A SURVEY
FOR A RESTAURANT CALLED DELI DEPOT
 

06/29/21 2
 IT SELLS COLD AND HOT SANDWICHES, SOUP AND CHILLI,
YOGHURT, PIES AND COOKIES
 
 THE RESTAURANT IS POSITIONED IN THE FAST FOOD MARKET TO
COMPETE DIRECTLY WITH SUBWAY AND SIMILAR SANDWICH
RESTAURANTS

06/29/21 3
DELI DEPOT SPSS DATA FILE

Deli Depot Data N50 V21 2-7-02.sav

06/29/21 4
 ITS COMPETITIVE ADVANTAGES INCLUDE:
 
 SPECIAL SAUCES ON SANDWICHES
 SUPPLEMENTARY MENU ITEMS LIKE SOUP AND PIES
 AND QUICK DELIVERY WITH IN SPECIFIED ZONES
 
THE STUDENTS OBTAINED PERMISSION TO CONDUCT INTERVIEWS
WITH CUSTOMERS INSIDE THE RESTAURANT

06/29/21 5
 INFORMATION WAS COLLECTED FOR 17 QUESTIONS
  CUSTOMERS WERE FIRST ASKED THEIR PERCEPTIONS OF THE
RESTAURANT ON SIX FACTORS (VARIABLES X 1 – X 6 )
 

06/29/21 6
• AND THEN ASKED TO RANK THE SAME FACTORS IN TERMS OF THEIR
IMPORTANCE IN SELECTING A RESTAURANT WHERE THEY WANTED
TO EAT ( VARIABLES X 12 – X 17 )

06/29/21 7
 FINALLY THE RESPONDENTS WERE ASKED
 
 HOW SATISFIED THEY WERE WITH THE RESTAURANT
 HOW LIKELY THEY WERE TO RECOMMEND IT TO A FRIEND
 HOW OFTEN THEY EAT THERE
 AND HOW FAR THEY DROVE TO EAT A MEAL AT DELI DEPOT

INTERVIEWERS RECORDED THE SEX OF THE RESPONDENTS

WITHOUT ASKING IT
 
 

06/29/21 8
 THE PERFORMANCE PERCEPTIONS WERE MEASURED AS FOLLOWS:
FOLLOWS
 
LISTED BELOW IS A SET OF CHARACTERISTICS THAT COULD BE USED
TO DESCRIBE DELI DEPOT
 
USING A SCALE FROM 1 TO 10, WITH 10 BEING “STRONGLY AGREE” AND
1 BEING
“STRONGLY DISAGREE”, TO WHAT EXTENT DO YOU AGREE OR DISAGREE
THAT DELI DEPOT HAS
 
X1 – FRIENDLY EMPLOYEES
X2 -- COMPETITIVE PRICES
X3 –COMPETENT EMPLOYEES
X4 – EXCELLENT FOOD QUALITY
X5 – WIDE VARIETY OF FOOD
X6 – FAST SERVICE
06/29/21 9
 IF A RESPONDENT CHOSE A 10 ON FRIENDLY
EMPLOYEES, THIS WOULD INDICATE STRONG
AGREEMENT THAT DELI DEPOT HAS FRIENDLY
EMPLOYEES
 
 ON THE OTHER HAND, IF A RESPONDENT CHOSE A 1
FOR FAST SERVICE, THIS WOULD INDICATE STRONG
DISAGREEMENT AND THE PERCEPTION THAT DELI
DEPOT OFFERS VERY SLOW SERVICE

06/29/21 10
CLASSIFICATION DATA

DATA FOR CLASSIFICATION VARIABLES WERE ASKED AT THE END OF THE

SURVEY, BUT IN THE DATA BASE, IT IS RECORDED AS VARIABLES X7 – X11

THE RESPONSES WERE CODED AS FOLLOWS:

X7 – GENDER ( 1 = MALE , 0 = FEMALE )
 
X8 – RECOMMEND TO A FRIEND ( 7 = DEFINITELY RECOMMEND ; 1 = DEFINITELY
NOT RECOMMENDED)
 
X9 – SATISFACTION LEVEL ( 7 = HIGHLY SATISFIED; 1 = NOT VERY SATISFIED)
 
X10 – USAGE LEVEL ( 1 = HEAVY USER [ EATS AT DELI DEPOT 2 OR MORE TIMES
EACH WEEK ] ; O = LIGHT USER [ EATS AT DELI DEPOT FEWER THAN TWO
TIMES A WEEK]
 
X11 – MARKET AREA ( 1 = CAME FROM WITH IN 1 MILE;
2 = CAME FROM 1 – 3 MILES; 3 = CAME FROM MORE THAN 3 MILES)

06/29/21 11
SELECTION FACTOR RANKINGS

DATA FOR THE SELECTION FACTORS WERE COLLECTED AS FOLLOWS:

 
LISTED BELOW IS A SET OF ATTRIBUTES (REASONS) MANY PEOPLE USE WHEN SELECTING A
FAST FOOD RESTAURANT TO EAT AT
 
REGARDING YOUR VISITS TO FAST-FOOD RESTAURANTS IN THE PAST THIRTY DAYS, PLEASE
RANK EACH ATTRIBUTE FROM 1 TO 6, WITH 6 BEING THE MOST IMPORTANT REASON FOR
SELECTING THE FAST FOOD RESTAURANT AND 1 BEING THE LEAST IMPORTANT REASON
 
THERE CAN BE NO TIES, SO YOU RANK EACH ATTRIBUTE WITH A DIFFERENT NUMBER
 
X12 – FRIENDLY EMPLOYEES
X13 – COMPETITIVE PRICES
X14 – COMPETENT EMPLOYEES
X15 – EXCELLENT FOOD QUALITY
X16 – WIDE VARIETY OF FOOD
X17 – FAST SERVICE

06/29/21 12
 SPSS APPLICATION- DESCRIPTIVE ANALYSIS

CLICK THROUGH SEQUENCE:

 
• ANALYZE
• DESCRIPTIVE STATISTICS
• FREQUENCIES

06/29/21 13
TESTING OF HYPOTHESIS
UNI VARIATE HYPOTHESIS TEST:

SUPPOSE THE MARKET RESEARCHER HAS AGREED TO HELP THE

MANAGEMENT OF DELI DEPOT TO DETERMINE WHETHER
CUSTOMERS THINK THE PRICE OF MENU IS COMPETITIVE
 
THE RESPONDENTS HAVE ANSWERED THIS QUESTION ( AS GIVEN
IN THE DELI DEPOT DATA FILE) USING A TEN POINT SCALE,
ON WHICH 1 = “ NOT COMPETITIVE” AND 10 = “VERY
COMPETITIVE”

06/29/21 14
• THE SCALE IS ASSUMED TO BE INTERVAL, AND PREVIOUS
RESEARCH HAS SHOWN RESPONSES TO BE APPROXIMATELY
NORMAL

• SPECIFY ALL THE NECESSARY STEPS REQUIRED TO TEST A

HYPOTHESIS
 

06/29/21 15
 THE MANAGEMENT THINKS THE CUSTOMERS CONSIDER THE PRICES
OF FOOD AT DELI DEPOT TO BE AVERAGE
THIS MEANS THE RESPONSES TO THE QUESTION ON COMPETITIVE
PRICES WILL HAVE A MEAN OF
5.5
(APPROXIMATELY HALF WAY BETWEEN 1 AND 10 ON THE
RESPONSE SCALE)

06/29/21 16
 THE NULL HYPOTHESIS IS THAT THE MEAN OF THE X 2 –
COMPETITIVE PRICES WILL NOT BE SIGNIFICANTLY DIFFERENT
FROM 5.5
 
 THE ALTERNATIVE HYPOTHESIS IS THAT THE MEAN OF THE
ANSWERS TO X 2 – COMPETITIVE PRICES WILL NOT BE 5.5 :
THERE IS IN FACT A TRUE DIFFERENCE BETWEEN THE SAMPLE
MEAN WE FIND AND THE MEAN WE THINK IT IS (5.5)
 

06/29/21 17
 SPECIFY THE CONFIDENCE LEVEL

LET US ASSUME THAT MANAGEMENT WANTS TO BE 95 PERCENT

CERTAIN THAT THE MEAN IS NOT 5.5

THE SIGNIFICANCE LEVEL WILL BE SET AT .05

06/29/21 18
 MEANING:
 
USING THIS LEVEL OF SIGNIFICANCE IMPLIES THAT IF THE SURVEY
OF DELI DEPOT CUSTOMERS IS CONDUCTED MANY TIMES,
THE PROBABILITY OF
INCORRECTLY
REJECTING THE NULL HYPOTHESIS WHEN IT IS TRUE, WOULD
HAPPEN
LESS THAN 5
TIMES OUT OF
100 (.0 5)

06/29/21 19
 CLICK THROUGH SEQUENCE FOR TESTING THE RESPONSES
IN THE DELI DEPOT DATA BASE TO FIND THE ANSWER TO
THE QUESTION POSED ABOVE IS:
IS

• ANALYZE
• COMPARE MEANS
• ONE SAMPLE t-TEST

06/29/21 20
• WHEN YOU GET TO THE DIALOG BOX , CLICK ON X 2 – COMPETITIVE PRICES

TO HIGHLIGHT IT
 
• THEN CLICK ON THE ARROW TO MOVE X 2 INTO THE TEST VARIABLES BOX
 
• IN THE BOX LABELED TEST VALUE, ENTER THE NUMBER 5.5 . THIS IS THE
NUMBER YOU WANT TO COMPARE THE RESPONDENTS’ ANSWERS AGAINST
 
• CLICK ON THE OPTIONS BOX AND ENTER 95 IN THE CONFIDENCE INTERVAL
BOX. THIS IS SAME AS SETTING THE SIGNIFICANCE LEVEL AT .05
 
• THEN CLICK ON THE CONTINUE BUTTON AND OK TO EXECUTE THE PROGRAM
 
06/29/21 21
 TABLE-1-
One-Sample Statistics

Std. Error
N Mean Std. Deviation Mean
X2 --
Competitive 50 2.22 1.148 .162
Prices

06/29/21 22
 TABLE-2
One-Sample Test

Test Value = 5.5

95% Confidence
Interval of the
Sig. (2- Mean Difference
t df tailed) Difference Lower Upper
X2 -- -
Competitive 49 .000 -3.280 -3.61 -2.95
Prices
20.203

06/29/21 23
• FIRST TABLE- ONE SAMPLE STATISTICS, GIVES THE SUMMARY
AND BASIC STATISTICS

• THE SECOND TABLE, ONE SAMPLE TEST, GIVES THE RESULTS OF

THE t-TEST FOR THE NULL HYPOTHESIS THAT THE AVERAGE
RESPONSE TO X 2 IS 5.5

06/29/21 24
• THE t –TEST STATISTIC IS - 20.203,
AND SIGNIFICANCE LEVEL IS .000
 
• THIS IMPLIES THAT THE NULL HYPOTHESIS CAN BE REJECTED AND
ALTERNATIVE HYPOTHESIS ACCEPTED WITH A HIGH LEVEL OF
CONFIDENCE
 

06/29/21 25
 FROM PRACTICAL STANDPOINT, IN TERMS OF DELI DEPOT, THE
RESULTS OF THE UNI VARIATE HYPOTHESIS TEST MEAN THAT THE
RESPONDENTS FELT THAT THE PRICES OF MENU ITEMS WERE NOT
COMPETITIVE AT ALL
 

06/29/21 26
• IN FACT, THE AVERAGE ANSWER IS CLOSER TO THE
ANCHOR POINT ON THE SCALE ( 1 = NOT COMPETITIVE)
THAN IT IS TO MID POINT OF THE SCALE

• THE DELI DEPOT MANAGER NOW HAS SOME

INFORMATION TO USE IN MAKING DECISIONS ON THE
LEVEL OF PRICES AT THE DELI DEPOT

06/29/21 27
BI-VARIATE HYPOTHESIS TESTS

IN MANY INSTANCES, THE MARKETING RESEARCHER WOULD LIKE TO TEST

HYPOTHESES THAT
COMPARE THE MEAN OF ONE GROUP WITH MEAN OF ANOTHER GROUP
 
 FOR EXAMPLE, THE MARKETING RESEARCHER MAY WELL BE INTERESTED
IN DETERMINING

WHETHER THERE IS ANY DIFFERENCE BETWEEN THE

OLDER AND YOUNGER NEW CAR PURCHASERS IN
TERMS OF THE IMPORTANCE OF A CD PLAYER
 
 IN SITUATIONS WHERE MORE THAN ONE GROUP IS INVOLVED,
BIVARIATE TESTS ARE NEEDED

06/29/21 28
• t-TEST TO COMPARE TWO MEANS
 
• ANALYSIS OF VARIANCE ( A METHOD TO COMPARE THREE OR
MORE GROUPS)

06/29/21 29
 JUST AS WITH THE UNIVARIATE t-TEST, THE BIVARIATE TEST
REQUIRES THE INTERVAL OR RATIO DATA

n = 30
 
UNLIKE UNI VARIATE TESTS, WE ASSUME THAT THE SAMPLES ARE
DRAWN FROM
 
 POPULATIONS WITH NORMAL DISTRIBUTION
 AND VARIANCES OF THE POPULATIONS ARE EQUAL
 

06/29/21 30
 ESSENTIALLY THE t-TEST FOR DIFFERENCES BETWEEN THE GROUPS
MEANS CAN BE
CONCEPTUALIZED
AS
THE DIFFERENCE BETWEEN THE MEANS DIVIDED BY THE
VARIABILITY OF RANDOM MEANS

06/29/21 31
• THE t VALUE IS A RATIO OF THE DIFFERENCES BETWEEN THE
TWO SAMPLES MEANS AND THE STANDARD ERROR
 
• THE t – TEST TRIES TO PROVIDE A RATIONAL WAY OF
DETERMINING IF THE DIFFERENCES BETWEEN THE TWO SAMPLES
OCCURRED BY CHANCE

06/29/21 32
 DELI DEPOT MANAGEMENT WANTS TO FIND OUT IF THERE ARE
DIFFERENCES IN THE LEVEL OF SATISFACTION BETWEEN MALE AND
FEMALE CUSTOMERS
 
CLICK THROUGH SEQUENCE IS
 
 ANALYZE
 
 COMPARE MEANS
 
 INDEPENDENT-SAMPLES
 
 T TEST

06/29/21 33
 GO TO DIALOG BOX –
 
 CLICK ON VARIABLE X 9 – SATISFACTION LEVEL INTO TEST VARIABLE BOX
 
 AND VARIABLE X 7 – GENDER INTO GROUPING VARIABLE BOX
 
 FOR VARIABLE X 7 , YOU MUST DEFINE THE RANGE IN THE DEFINE GROUPS
BOX
 
 THUS ENTER A , 1 FOR GROUP 1 AND A, 0 FOR GROUP 2 ( MALES ARE CODED
1 IN THE DATA BASE AND FEMALES WERE CODED 0 )
 
 CLICK CONTINUE
 FOR THE OPTIONS BOX, USE DEFAULT, SO JUST CLICK OK TO EXECUTE THE
PROGRAM

06/29/21 34
 TABLE-3
Group Statistics

Std. Std. Error

GENDER N Mean Deviation Mean
SATISFACTION MALE 20 4.35 1.040 .233
LEVEL FEMALE
30 5.07 .785 .143

06/29/21 35
• TABLE 3 SHOWS THE GROUP STATISTICS

• MEAN SATISFACTION LEVEL FOR MALES AND FEMALES

 
• WE DO NOT KNOW IF THE TWO MEANS
4.35 AND 5.07
ARE SIGNIFICANTLY DIFFERENT

06/29/21 36
 TABLE-4
Independent Samples Test
Levene's
Test for
Equality of
Variances t-test for Equality of Means
95% Confidence
Interval of the
Difference

Sig. (2- Mean Std. Error

F Sig. t df tailed) Difference Difference Lower Upper
Equal
SATISFACTION variances
LEVEL 3.415 .071 -2.775 48 .008 -.717 .258 -1.236 -.197
assumed
Equal
variances
not -2.624 33.048 .013 -.717 .273 -1.272 -.161
assumed

06/29/21 37
 WE DO NOT KNOW IF THE TWO MEANS ARE SIGNIFICANTLY
DIFFERENT, BUT WE CAN FIND THAT BY LOOKING AT THE
INFORMATION IN THE ABOVE TABLE – INDEPENDENT T TEST –

 LOOKING IN THE COLUMN LABELED Sig. ( 2 TAILED) WE NOTE THAT

THE TWO MEANS ARE SIGNIFICANTLY DIFFERENT ( <.05 ),
WHETHER WE ASSUME EQUAL OR UNEQUAL VARIANCES
 
 THUS FEMALE CUSTOMERS ARE SIGNIFICANTLY MORE SATISFIED
THAN MALE CUSTOMERS

06/29/21 38
ANALYSIS OF VARIANCE—SPSS APPLICATION

THE MANAGEMENT OF DELI DEPOT WANTS TO KNOW

 
1. WHETHER THE CUSTOMERS WHO COME TO RESTAURANT FROM
GREATER DISTANCES
DIFFER FROM THE CUSTOMERS
WHO LIVE NEARBY IN THEIR WILLINGNESS TO
RECOMMEND THE RESTAURANT TO A FRIEND
 
2. THEY MIGHT ALSO WANT TO KNOW WHETHER THAT DIFFERENCE
IN WILLINGNESS , IF ANY, IS INFLUENCED BY THE SEX OF THE
CUSTOMERS
 

06/29/21 39
THE DATA BASE VARIABLES ARE:
 
X 8 – RECOMMEND TO A FRIEND, MEASURED ON A SEVEN POINT SCALE
WITH 1 = “ DEFINITELY NOT RECOMMEND”
AND 7 = “ DEFINITELY RECOMMEND”
 
X 11 – MARKET AREA
 
1 = “ CAME FROM WITH IN 1 MILE”
2 = “ CAME FROM 1 – 3 MILES”
3 = “ CAME FROM MORE THAN MILES”
 
X 7 = GENDER
 
1 = MALE
0 = FEMALE

06/29/21 40
 ON THE BASIS OF INFORMAL COMMENTS FROM THE CUSTOMERS,
THE DELI DEPOT MANAGEMENT THINKS THAT THE CUSTOMERS
WHO CAME FROM MORE THAN
3 MILES
WILL BE MORE LIKELY TO RECOMMEND THE
RESTAURANT TO THE FRIENDS

 AND THAT FEMALE CUSTOMERS WILL BE

MORE LIKELY TO
RECOMMEND
THE DELI TO A FRIEND THAN THE MALES

06/29/21 41
THUS NULL HYPOTHESES ARE :
 
 THE MEAN SCORES FOR RECOMMENDATION LIKELY HOOD WILL
NOT BE DIFFERENT FOR CUSTOMERS WHO HAVE TRAVELED
DIFFERENT DISTANCES TO GET TO DELI

 THAT THERE WILL BE NO DIFFERENCE BETWEEN FEMALE AND

MALE CUSTOMERS’ WILLINGNESS TO RECOMMEND THE
RESTAURANT
 
 

06/29/21 42
 THE BEST WAY TO ANALYZE THE DELI DEPOT DATA TO ANSWER THE
MANAGER’S QUESTIONS IS:
 
TO USE A FACTORIAL MODEL
 
A FACTORIAL MODEL
IS A TYPE OF ANOVA IN WHICH THE INDIVIDUAL EFFECTS OF EACH
INDEPENDENT VARIABLE ON THE DEPENDENT VARIABLE ARE
CONSIDERED SEPARATELY AND THEN
THE COMBINED EFFECTS (INTERACTION) OF THE INDEPENDENT
VARIABLES ON THE DEPENDENT VARIABLE ARE ANALYZED
 

06/29/21 43
THE CLICK THROUGH SEQUENCE IS:
 
 ANALYZE
 
 GENERAL LINEAR MODEL
 
 UNI -VARIATE
 
 HIGHLIGHT THE DEPENDENT VARIABLE X 8 -- RECOMMEND TO A FRIEND – AND MOVE
IT TO THE DEPENDENT VARIABLE BOX
 
 HIGHLIGHT X 11 -- DISTANCE DRIVEN, AND X 7 -- GENDER -- AND MOVE THEM TO
THE FIXED FACTOR BOX
 
 CLICK OK
 

06/29/21 44
• THE FIRST BOX BELOW DISPLAYS THE NUMBER OF CASES USED IN
THE ANALYSIS

• THE SECOND BOX SHOWS THE RESULTS OF THE ANOVA PROGRAM

 
 

06/29/21 45
 BOX – 1
Between-Subjects Factors

Value
Label N
Distance 1
22
Driven
2 20
3 8
GENDER 0 FEMALE 30
1 MALE 20

06/29/21 46
 BOX-2- Tests of Between-Subjects Effects
Dependent Variable: RECOMMEND TO FRIEND
Type III Sum of
Source Squares df Mean Square F Sig.
Corrected Model
20.727(a) 5 4.145 6.974 .000
Intercept
556.335 1 556.335 935.995 .000
x11
14.149 2 7.074 11.902 .000
x7
.022 1 .022 .037 .848
x11 * x7
.723 2 .361 .608 .549
Error
26.153 44 .594
Total
1142.000 50
Corrected Total
46.880 49

a R Squared = .442 (Adjusted R Squared = .379)

06/29/21 47
 THE NULL HYPOTHESES ARE :

1. THE MEAN SCORES FOR RECOMMENDATION

LIKELY HOOD ( X 8 ) WILL NOT BE DIFFERENT FOR
CUSTOMERS WHO HAVE TRAVELED DIFFERENT
DISTANCES TO GET TO DELI ( X 11 )
 
2. THAT THERE WILL BE NO DIFFERENCE BETWEEN
FEMALE AND MALE CUSTOMERS’ WILLINGNESS
TO RECOMMEND THE RESTAURANT ( X 7 )

06/29/21 48
 THE PURPOSE OF ANOVA ANALYSIS IS TO SEE IF THE DIFFERENCES
THAT DO EXIST ARE BIG ENOUGH TO BE STATISTICALLY
SIGNIFICANT
 
WE USE F – RATIO TO DETERMINE THE MEAN DIFFERENCE FOR
INDEPENDENT VARIABLE COMPARISON
F= VARIANCE BETWEEN THE GROUPS
VARIANCE WITH IN GROUPS

THE APPROACH USED IN ANOVA

COMPARES THE VARIANCE FROM THE
GRAND MEAN BETWEEN THE GROUPS
WITH THE VARIANCE WITH IN THE
GROUPS
06/29/21 49
 IN DELI DEPOT CASE THERE ARE THREE GROUPS OF
RESPONDENTS WHO HAVE TRAVELED:
 
 LESS THAN A MILE
 1 – 3 MILES
 AND MORE THAN 3 MILES
 
TO COME TO DELI DEPOT

06/29/21 50
 THE BIGGER THE F – THE TESTS OF
BETWEEN – THIS IMPLIES
RATIO, THE BIGGER THE SUBJECTS EFFECTS THAT
DIFFERENCE AMONG TABLE THE TESTS OF
BETWEEN – CUSTOMERS
THE MEANS OF THE SUBJECTS EFFECTS WHO LIVE
VARIOUS GROUPS WITH TABLE ( BOX – 2 )
SHOWS THAT THE F- FARTHER AWAY
RESPECT TO THEIR RATIO FOR X 11 – ARE MORE
LIKELIHOOD OF DISTANCE DRIVEN IS
11.092, WHICH IS LIKELY TO
RECOMMENDING THE STATISTICALLY RECOMMEND
RESTAURANT TO A SIGNIFICANT
AT THE .000 LEVEL DELI DEPOT TO A
FRIEND SIGNIFICANT FRIEND
AT THE .000 LEVEL

06/29/21 51
 TO VERIFY THE DIFFERENCES IN THE RECOMMEND TO A
FRIEND MEANS FOR DISTANCE DRIVEN TO GET TO DELI
DEPOT,
 
WE USE THE CLICK THROUGH SEQUENCE:
 
 ANALYZE
 COMPARE MEANS
 MEANS
 
 HIGHLIGHT THE DEPENDENT VARIABLE X 8 – RECOMMEND TO A
FRIEND AND MOVE IT TO THE DEPENDENT LIST BOX
 
 NEXT HIGHLIGHT X 11 – DISTANCE TRAVELED AND MOVE IT TO
THE INDEPENDENT LIST
 
 THEN CLICK OK

06/29/21 52
 LOOK AT THE REPORT TABLE GIVEN BELOW

REPORT
RECOMMEND TO A FRIEND

Distance Std.
Driven Mean N Deviation
1 4.00 22 .816
2 5.10 20 .788
3 5.50 8 .535
Total 4.68 50 .978

06/29/21 53
 THE AVERAGE LIKELIHOOD OF RECOMMENDING DELI DEPOT TO A FRIEND
INCREASES AS THE DISTANCE DRIVEN
BY THE RESPONDENT INCREASES
 
 WHICH MEANS THAT THE CUSTOMERS WHO LIVE WITH IN
1 MILE OF DELI DEPOT SHOW A
4.0 AVERAGE LIKELIHOOD TO RECOMMEND,

COMPARED WITH A

5.5 AVERAGE LIKELIHOOD FOR CUSTOMERS WHO

LIVE MORE THAN
3 MILES AWAY

06/29/21 54
 THE SECOND MAIN EFFECTS OF COMPARISON WAS
WHETHER THERE IS A DIFFERENCE IN THE LIKELIHOOD OF
RECOMMENDING DELI DEPOT. THE F – RATIO FOR
GENDER
( X 7)
IS VERY SMALL
(.037 ) – SEE BOX 2 ABOVE – AND IS NOT VERY
SIGNIFICANT
(.848 )

06/29/21 55
IN THIS CASE
NULL HYPOTHESIS
CAN NOT BE REJECTED

THUS THERE IS NO DIFFERENCE IN THE AVERAGE

LIKELIHOOD OF MALE AND FEMALE CUSTOMERS TO
RECOMMEND DELI DEPOT TO FRIENDS

06/29/21 56
 THE COMPARISON OF THE INTERACTION
BETWEEN DISTANCE TRAVELED AND GENDER
HAS AN
F – RATIO OF .608
WITH PROBABILITY LEVEL OF
.549
MEANING THAT THE DIFFERENCE IN THE
LIKELIHOOD OF RECOMMENDATION WHEN
BOTH INDEPENDENT VARIABLES ARE
CONSIDERED TOGETHER IS VERY SMALL
 
THE NULL HYPOTHESIS OF NO DIFFERENCE,
THUS, CAN NOT BE
REJECTED
 

06/29/21 57
 THIS IMPLIES THAT THE INFLUENCE OF DISTANCE
TRAVELED ON LIKELIHOOD OF RECOMMENDING DELI
DEPOT IS ESSENTIALLY THE SAME FOR FEMALE AND
FEMALE CUSTOMERS

06/29/21 58
DATA ANALYSIS - TESTING OF
ASSOCIATION – SPSS APPLICATION

• CORRELATION 
• REGRESSION ANALYSIS
• WE SHALL BE USING ONCE AGAIN DELI DEPOT DATA TO
EXAMINE PEARSON CORRELATION
 
• MANAGEMENT ANTICIPATES THAT THE RELATIONSHIP
BETWEEN SATISFACTION WITH THE RESTAURANT AND
THE LIKELIHOOD TO RECOMMEND THE RESTAURANT
WOULD BE SIGNIFICANT AND POSITIVE

06/29/21 59
 VARIABLES ARE : X 9 – SATISFACTION LEVEL AND X 8 –
RECOMMEND TO A FRIEND

CLICK THROUGH SEQUENCE IS:

• ANALYZE
• CORRELATE
• BI-VARIATE
 

06/29/21 60
• AND THIS LEADS TO A DIALOGUE BOX -- TRANSFER VARIABLES X 8 AND
X 9 INTO VARIABLE BOXES
• USE ALL THE THREE DEFAULT OPTIONS GIVEN IN DIALOGUE BOX 9
( SHOWN BELOW ):
• PEARSON CORRELATION
• TWO TAILED TEST OF SIGNIFICANCE
• FLAG SIGNIFICANT CORRELATIONS
• NEXT GO TO OPTIONS BOX
• CLICK ON MEANS, STANDARD DEVIATIONS
• CLICK CONTINUE
• FINALLY CLICK OK
 

06/29/21 61
 Descriptive Statistics

Mean Std. Deviation N

RECOMMEND TO
4.68 .978 50
FRIEND
SATISFACTION LEVEL
4.78 .954 50

06/29/21 62
 Correlations

RECOMMEND TO SATISFACTION
FRIEND LEVEL
RECOMMEND TO Pearson Correlation
1 .601(**)
FRIEND
Sig. (2-tailed) . .000
N 50 50
SATISFACTION LEVEL Pearson Correlation
.601(**) 1
Sig. (2-tailed) .000
N
** Correlation is significant at the 0.01 level50(2-tailed). 50

r 2 = .36
06/29/21 63
 
IF ONE OR BOTH THE VARIABLES HAVE BEEN MEASURED USING ORDINAL
  SCALES, SPEARMAN RANK ORDER CORRELATION COEFFICIENT RATHER
THAN PEARSON CORRELATION, IS USED
 
IN DELI DEPOT EXAMPLE, CUSTOMER SURVEY COLLECTED DATA THAT
RANKED SIX RESTAURANT SELECTION FACTORS
 
• THESE ARE REPRESENTED BY VARIABLES X 12 TO X 17
 
• THE MANAGEMENT IS INTERESTED IN KNOWING WHETHER
“ FOOD QUALITY ”
IS SIGNIFICANTLY MORE IMPORTANT SELECTION FACTOR THAN IS “
FOOD VARIETY ”
 

06/29/21 64
• SINCE THESE ARE ORDINAL (RANKING ) DATA, THE
PEARSON CORRELATION IS NOT SUFFICIENT 
SUFFICIENT
• SPEARMAN RANK ORDER CORRELATION IS TO BE USED

VARIABLES FOR ANALYSIS ARE:

 
• X 15 – FOOD QUALITY
 
• X 16 – FOOD VARIETY

06/29/21 65
CLICK THROUGH SEQUENCE IS:

• ANALYZE
• CORRELATE
• BI-VARIATE
 

06/29/21 66
 THIS LEADS TO A DIALOGUE BOX:

• TRANSFER VARIABLES X 15 AND X 16 INTO THE VARIABLE BOX

 
• DEFAULT SHOWS PEARSON CORRELATION
 
• UNCLICK PEARSON CORRELATION
 
• THEN CLICK ON SPEARMAN
 
• CLICK OK

06/29/21 67
• THE OUTPUT IS SHOWN IN THE BOX BELOW
 
• THE CORRELATION IS -.495 AND THE SIGNIFICANCE
VALUE IS .01
 
• IT IS NEGATIVE WHICH TELLS US THAT
A CUSTOMER WHO RANKS FOOD QUALITY
HIGH IN IMPORTANCE TENDS TO RANK
FOOD VARIETY SIGNIFICANTLY LOWER

06/29/21 68
 Correlations
Food Variety Food Quality
Rank Rank
Spearman's rho Food Variety Correlation
1.000 -.495(**)
Rank Coefficient
Sig. (2-tailed) . .000
N 50 50
Food Quality Correlation
-.495(**) 1.000
Rank Coefficient
Sig. (2-tailed) .000 .
N 50 50

** Correlation is significant at the 0.01 level (2-tailed)

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 TO BETTER UNDERSTAND THIS RELATIONSHIP, WE NEED TO
CALCULATE THE MEDIAN RANKINGS OF THE SELECTION FACTORS
TO DO IT -
SPSS CLICK THROUGH SEQUENCE IS:
 
• ANALYZE
• DESCRIPTIVE STATISTICS
• FREQUENCIES 
• HIGHLIGHT VARIABLES X 12 – X 17 AND MOVE THEM TO VARIABLE
BOX FOR ANALYSIS
• NEXT, OPEN THE STATISTICS BOX AND CLICK ON MEDIAN
• CLICK CONTINUE 
• CLICK OK

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 Statistics

Friendly Competi Competent Food Food Speed of

Employees tive Price Employees Quality Variety Service
Rank Rank Rank Rank Rank Rank
N Valid
50 50 50 50 50 50
Missing
0 0 0 0 0 0
Median
3.00 4.00 4.00 5.00 2.00 2.00

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• THE VARIABLE WITH THE LARGEST MEDIAN IS RANKED THE
HIGHEST AND THE MOST IMPORTANT, AND THE VARIABLE WITH
THE LOWEST MEDIAN IS THE LEAST IMPORTANT
 
• EACH OF THE VARIABLES WERE RANKED ON A SCALE OF 1 TO 6
 
• FOOD QUALITY IS RANKED AS MOST IMPORTANT ( MEDIAN = 5.0)
• WHILE SPEED OF SERVICE AND FOOD VARIETY ARE LEAST
IMPORTANT – WITH A RANKING OF 2.0 EACH
 
• THUS FOOD QUALITY IS A SIGNIFICANTLY MORE IMPORTANT
RESTAURANT SELECTION FACTOR THAN IS FOOD VARIETY

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CHI – SQUARE ANALYSIS - SPSS
APPLICATION

THE MANAGER OF DELI DEPOT MIGHT BELIEVE THAT

THERE IS NO DIFFERENCE IN THE PERCENTAGE OF MEN
AND WOMEN WHO TRAVEL VARIOUS DISTANCES TO VISIT
THE RESTAURANT
 

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• THE NULL HYPOTHESIS WOULD BE THAT
PERCENTAGE OF MEN AND WOMEN CUSTOMERS
ARE THE SAME WHO TRAVEL LESS THAN ONE
MILE TO EAT AT DELI DEPOT, THOSE WHO TRAVEL
ONE TO THREE MILES, AND THOSE WHO TRAVEL
MORE THAN THREE MILES

• THIS COULD BE ANSWERED USING CHI – SQUARE

ANALYSIS

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 CLICK THROUGH SEQUENCE:
  ANALYZE
 DESCRIPTIVE STATISTICS
 CROSS TABS 
 CLICK ON X 11 – DISTANCE TRAVELED FOR THE ROW VARIABLE
 CLICK ON X 7 – GENDER FOR COLUMN VARIABLE 
 CLICK STATISTICS BUTTON AND THE CHI SQUARE BUTTON
 CONTINUE 
 NEXT CLICK ON THE CELLS BUTTON AND ON OBSERVED AND
EXPECTED FREQUENCIES
 CLICK CONTINUE AND OK TO EXECUTE THE PROGRAM
 

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• FIRST TABLE BELOW SHOWS THE NUMBER OF CASES PROCESSED
 
• SECOND TABLE SHOWS THE NUMBER OF RESPONSES FOR MALES
AND FEMALES FOR EACH OF THE CATEGORIES OF X 11 -- DISTANCE
TRAVELED
 
• ALSO SHOWN IN THIS TABLE ARE THE EXPECTED FREQUENCIES
UNDER THE NULL HYPOTHESIS OF NO DIFFERENCE
 

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 ( NOTE: THE EXPECTED FREQUENCIES ARE CALCULATED ON THE
BASIS OF THE PROPORTION OF THE SAMPLE REPRESENTED BY A
PARTICULAR GROUP. FOR EXAMPLE, THE TOTAL SAMPLE IS 50
AND 20 ARE MALES AND 30 ARE FEMALES. THIS MEANS 40
PERCENT OF THE SAMPLE IS MALE AND 60 PERCENT IS FEMALE.
WHEN WE LOOK IN THE GENDER TABLE FOR THE CATEGORY AT
THE TOP LABELED 1 WE SEE THAT THERE ARE 22 RESPONDENTS.
THEREFORE THE EXPECTED FREQUENCIES ARE
40 PERCENT MALES = 8.8
AND 60 PERCENT FEMALES = 31.2
THE OTHER FREQUENCIES ARE CALCULATED IN
THE SAME WAY )

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 TABLE : Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Distance 50 100.0% 0 .0% 50 100.0%
Driven

* GENDER

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 TABLE-
Distance Driven * GENDER Crosstabulation
GENDER Total

FEMALE MALE

Distance 1 Count 9 13 22
Driven
Expected Count 13.2 8.8 22.0

2 Count 14 6 20

Expected Count 12.0 8.0 20.0

3 Count 7 1 8

Expected Count 4.8 3.2 8.0

Total Count 30 20 50

Expected Count 30.0 20.0 50.0

GENDER Total
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 TABLE -- 3
Chi-Square Tests

Value df Asymp. Sig. (2-

sided)
Pearson Chi-Square 6.695 2 .035

Likelihood Ratio 7.071 2 .029

Linear-by-Linear 6.413 1 .011
Association
N of Valid Cases 50
a 2 cells (33.3%) have expected count less than 5.
The minimum expected count is 3.20.
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• THE ABOVE TABLE SHOWS THE CHI – SQUARE VALUE – IT IS
6.695 AT 0.35 LEVEL

• SINCE THE LEVEL OF SIGNIFICANCE IS LESS THAN .05, WE MAY

REJECT THE NULL HYPOTHESIS WITH A HIGH DEGREE OF
CONFIDENCE
 
• SO THERE IS A SIGNIFICANT DIFFERENCE BETWEEN THE
NUMBER OF WOMEN AND MEN DELI DEPOT CUSTOMERS AND
THE DISTANCE THEY TRAVEL

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•IF WE LOOK AT THE OBSERVE FREQUENCIES IN TABLE – 2 ABOVE,
IT APPEARS THAT FEMALE CUSTOMERS OF DELI DEPOT TEND TO
DRIVE FARTHER TO GET TO DELI DEPOT THAT DO MALE
CUSTOMERS

•THAT IS THERE ARE MORE FEMALE CUSTOMERS THAN WOULD BE

EXPECTED WHO DRIVE FARTHER TO GET TO RESTAURANT, AND
FEWER FEMALE CUSTOMERS THAN WOULD BE EXPECTED WHO
VISIT THE RESTAURANT FROM NEARBY 9 LOOKING AT THE
OBSERVED AND EXPECTED FREQUENCIES IN EACH CELL )

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 THE USE OF CHI – SQUARE STATISTIC IS VERY
USEFUL IN ANSWERING QUESTIONS ABOUT THE
DATA THAT ARE NOMINALLY SCALED AND ARE NOT
SUITABLE FOR OTHER TYPES OF STATISTICAL
ANALYSIS, SUCH AS ANOVA OR t – tests

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