Chapter 11 Advanced Data Analysis

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    1- 1Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia

    Essentials of

    Marketing Research

    MALHOTRA

    HALLSHAWOPPENHEIM

    ANAPPLIEDORIENTATION

    PowerPoint to accompany

    1- 1

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    PART FOUR

    Chapter 11

    Advanced Data Analysing

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    Chapter Objectives

    After reading this chapter, you should be able to: Discuss the scope of the ANOVA technique. Describe one-way ANOVA. Describe n-way ANOVA and the testing of

    significance.

    Describe ANCOVA. Discuss MANOVA. Discuss the concepts of the correlation coefficient

    and the partial correlation. Explain the nature and methods of multiple regression

    analysis.

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    ANOVA

    Analysis of variance (ANOVA) examines thedifferences in the mean values of the dependentvariable (interval scale)associated with the effect ofthe controlled independent variable (nominal scale),

    after taking into account the influence of theuncontrolled independent variables.

    e.g. Do the brand evaluation of groups exposed to different

    commercials vary?How do consumers intentions to buy the brand vary with

    different price levels?

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    One-way ANOVA

    We are testing to determine the effect of in-store

    promotion (X) on sales (Y).

    H0: 1 = 2 = 3H1: 12 3

    Descriptives

    Sales

    10 8.3000 1.33749 .42295 7.3432 9.2568 6.00 10.00

    10 6.2000 1.75119 .55377 4.9473 7.4527 4.00 9.00

    10 3.7000 2.00278 .63333 2.2673 5.1327 1.00 7.00

    30 6.0667 2.53164 .46221 5.1213 7.0120 1.00 10.00

    high

    medium

    low

    Total

    N Mean Std. Deviation Std. Error Lower Bound Upper Bound

    95% Confidence Interval for

    MeanMinimum Maximum

    See Table 11.1 page 317 for the data set

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    One-way ANOVA cont.

    ANOVA

    Sales

    106.067 2 53.033 17.944 .000

    79.800 27 2.956

    185.867 29

    Between Groups

    Within Groups

    Total

    Sum ofSquares df Mean Square F Sig.

    Multiple Comparisons

    Dependent Variable: Sales

    Tukey HSD

    2.1000* .76884 .029 .1937 4.0063

    4.6000* .76884 .000 2.6937 6.5063

    -2.1000* .76884 .029 -4.0063 -.1937

    2.5000* .76884 .008 .5937 4.4063

    -4.6000* .76884 .000 -6.5063 -2.6937

    -2.5000* .76884 .008 -4.4063 -.5937

    (J) In-store promotion

    medium

    low

    high

    low

    high

    medium

    (I) In-store promotion

    high

    medium

    low

    Mean

    Difference

    (I-J) Std. Error Sig. Lower Bound Upper Bound

    95% Confidence Interval

    The mean difference is significant at the .05 l evel.*.

    Main effect (in-store promotion)

    Residuals

    RejectH0, themeansare not

    equal

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    One-way ANOVA cont.

    Interpretation

    57.1% (ie. 2 = 106.067/185.856) of the variation insales is accounted for by in-store promotion,indicating a modest effect.

    The mean sales figures are different, that is atleast one pair of means is statistically different.

    All combination of means are statisticallydifferent, therefore the different levels of in-store

    promotion will impact sales.

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    N-way ANOVA

    N-way analysis of variance examines thedifferences in the mean values of the dependentvariable (interval scale)associated with the effectof more than one independent variable (nominal

    scale). Enables the examination of interactions between

    the factors.

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    N-way ANOVA

    We are testing to determine the effect of in-storepromotion and couponing (X) on sales (Y).

    H0: 1 = 2H1: 12

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    N-way ANOVA cont.

    Descriptive Statistics

    Dependent Variable: Sales

    9.2000 .83666 5

    7.6000 1.14018 5

    5.4000 1.14018 5

    7.4000 1.88225 157.4000 1.14018 5

    4.8000 .83666 5

    2.0000 .70711 5

    4.7333 2.43389 15

    8.3000 1.33749 10

    6.2000 1.75119 10

    3.7000 2.00278 10

    6.0667 2.53164 30

    In-store promotion

    high

    medium

    low

    Totalhigh

    medium

    low

    Total

    high

    medium

    low

    Total

    Coupon level

    $20 store-wide coupon

    No coupon

    Total

    Mean Std. Deviation N

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    N-way ANOVA cont.

    Tests of Between-Subjects Effects

    Dependent Variable: Sales

    162.667a 5 32.533 33.655 .000

    1104.133 1 1104.133 1142.207 .000

    53.333 1 53.333 55.172 .000

    106.067 2 53.033 54.862 .000

    3.267 2 1.633 1.690 .206

    23.200 24 .967

    1290.000 30

    185.867 29

    Source

    Corrected Model

    Intercept

    COUPON

    INSTORE

    COUPON * INSTORE

    Error

    Total

    Corrected Total

    Type III Sum

    of Squares df Mean Square F Sig.

    R Squared = .875 (Adjusted R Squared = .849)a.

    Overall

    Main effect

    Main effectInteraction

    Interaction isnot significantMain effect of promotion is significant

    Main effect of coupon is significant

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    N-way ANOVA cont.

    Interpretation

    Higher level of in-store promotion results inhigher sales

    The distribution of a storewide coupon results inhigher sales

    The effect of each is independent of the other

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    Analysis of Covariance

    Examine differences in the mean values of thedependent variable related to the effect of thecontrolled independent variables.

    Dependent variable [metric]

    Independent variable [one categorical and one metric]

    Example

    To determine the effect of in-store promotion andcouponing on sales while controlling for the affluenceof clientele.

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    Analysis of Covariance cont.

    Tests of Between-Subjects Effects

    Dependent Variable: Sales

    163.505a 6 27.251 28.028 .000

    103.346 1 103.346 106.294 .000

    .838 1 .838 .862 .363

    53.333 1 53.333 54.855 .000

    106.067 2 53.033 54.546 .000

    3.267 2 1.633 1.680 .208

    22.362 23 .972

    1290.000 30

    185.867 29

    Source

    Corrected Model

    Intercept

    CLIENTEL

    COUPON

    INSTORE

    COUPON * INSTORE

    Error

    Total

    Corrected Total

    Type III Sum

    of Squares df Mean Square F Sig.

    R Squared = .880 (Adjusted R Squared = .848)a.

    Not significant

    We can conclude that the affluence of the clientele does not have an effect

    on the sales of the department store

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    Multivariate Analysis of Variance(MANOVA)

    Examine group differences across multipledependent variables simultaneously

    Appropriate when 2 or more dependent variablesare correlated

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    Correlation coefficient

    The correlation coefficient, r, is a statisticsummarising the strength of associationbetween two metric (interval or ratio) variables.

    -1 0 +1

    Strongnegative

    relationship

    Strongpositive

    relationship

    Norelationship

    Examples

    How strongly are sales related to advertising expenditure?

    Are consumers perceptions of quality related to their perceptions of price?

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    Correlation coefficient cont.

    Correlations

    1 .179**

    . .000

    446 424

    .179** 1

    .000 .

    424 425

    Pearson Correlation

    Sig. (2-tailed)

    N

    Pearson Correlation

    Sig. (2-tailed)

    N

    Trust the website

    Satisfaction with Website

    Trust the

    website

    Satisfaction

    with Website

    Correlation is significant at the 0.01 level (2-tai led).**.

    Positive relationshipbetween trust and

    satisfaction

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    Regression Analysis

    ANOVAb

    16.598 1 16.598 13.953 .000a

    501.986 422 1.190

    518.584 423

    Regression

    Residual

    Total

    Model

    1

    Sum ofSquares df Mean Square F Sig.

    Predictors: (Constant), Trust the websitea.

    Dependent Variable : Satisfaction with Websiteb.

    Model Summary

    .179a .032 .030 1.09066

    Model

    1

    R R Square

    Adjusted

    R Square

    Std. Error of

    the Estimate

    Predictors: (Constant), Trust the websitea.

    Model is significant

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    Regression Analysis cont.

    Coefficientsa

    4.102 .199 20.656 .000.143 .038 .179 3.735 .000

    (Constant)Trust the website

    Model

    1

    B Std. Error

    Unstandardized

    Coefficients

    Beta

    Standardized

    Coefficients

    t Sig.

    Dependent Variable: Satisfaction with Websitea.

    Sales = 4.1 + 0.14 Trust

    Significant linear relationshipbetween satisfaction with the

    website and trust in thewebsite

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    Partial correlation coefficientCorrelations

    1 .222** .277** .373** .237** .235** .179** .286**

    . .000 .000 .000 .000 .000 .000 .000

    425 424 399 421 421 421 424 425

    .222** 1 .162** .119* -.007 .250** .192** .268**

    .000 . .001 .012 .878 .000 .000 .000

    424 447 414 442 443 442 444 447

    .277** .162** 1 .359** .078 .147** .106* .300**

    .000 .001 . .000 .112 .003 .030 .000

    399 414 417 414 415 413 415 417.373** .119* .359** 1 .087 .077 .050 .334**

    .000 .012 .000 . .069 .107 .293 .000

    421 442 414 444 440 440 442 444

    .237** -.007 .078 .087 1 .139** .191** .136**

    .000 .878 .112 .069 . .003 .000 .004

    421 443 415 440 446 441 442 446

    .235** .250** .147** .077 .139** 1 .327** .131**

    .000 .000 .003 .107 .003 . .000 .006

    421 442 413 440 441 445 441 445

    .179** .192** .106* .050 .191** .327** 1 .128**

    .000 .000 .030 .293 .000 .000 . .007

    424 444 415 442 442 441 446 446

    .286** .268** .300** .334** .136** .131** .128** 1

    .000 .000 .000 .000 .004 .006 .007 .

    425 447 417 444 446 445 446 450

    Pearson Correla tion

    Sig. (2-tailed)

    N

    Pearson Correla tion

    Sig. (2-tailed)

    N

    Pearson Correla tion

    Sig. (2-tailed)

    NPearson Correla tion

    Sig. (2-tailed)

    N

    Pearson Correla tion

    Sig. (2-tailed)

    N

    Pearson Correla tion

    Sig. (2-tailed)

    N

    Pearson Correla tion

    Sig. (2-tailed)

    N

    Pearson Correla tion

    Sig. (2-tailed)

    N

    Satisfaction with Website

    Ease of use

    Sociable

    innovative

    Speed of download

    Customer control

    Trust the website

    Appearance

    Satisfaction

    with Website Ease of use Sociable innovative

    Speed of

    download

    Customer

    control

    Trust the

    website Appearance

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

    Correlation i s signifi cant at the 0.05 l evel (2-tailed).*.

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    Multiple Regression

    Model Summary

    .494a .245 .231 .95995

    Model

    1

    R R Square

    Adjusted

    R Square

    Std. Error of

    the Estimate

    Predictors: (Constant), Trust the website, innovative,

    Ease of use, Speed of download, Sociable, Customer

    control, Appearance

    a.

    ANOVAb

    113.922 7 16.275 17.661 .000a

    352.013 382 .922

    465.936 389

    Regression

    Residual

    Total

    Model

    1

    Sum of

    Squares df Mean Square F Sig.

    Predictors: (Constant), Trust the website, innovative, Ease of use, Speed of

    download, Sociable, Customer control, Appearance

    a.

    Dependent Variable: Satisfaction with Websiteb.

    1

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    Multiple Regression cont.

    Coefficientsa

    .283 .450 .629 .5309.897E-02 .051 .097 1.951 .052

    5.793E-02 .024 .115 2.425 .016

    6.352E-02 .034 .093 1.891 .059

    .220 .046 .237 4.757 .000

    .181 .054 .156 3.359 .001

    .117 .044 .129 2.658 .008

    5.230E-02 .038 .067 1.373 .171

    (Constant)Appearance

    Ease of use

    Sociable

    innovative

    Speed of download

    Customer controlTrust the website

    Model

    1

    B Std. Error

    Unstandardized

    Coefficients

    Beta

    Standardized

    Coefficients

    t Sig.

    Dependent Variable : Satisfaction with Websitea.

    2

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    Multiple Regression cont.

    Interpretation 1 The overall model model is significant at = 0.05

    H0: 1 = 2 = 3 = 4 = 5 = 6 = 7 =0H1: 1234567 0

    2Testing which of the independent variables have a significantimpact on satisfaction with the website

    H0: 1 = 0H1: 1 0

    Ease of use, innovative website,speed of download, and

    respondents perception of control are significant variables ininfluencing satisfaction rating of the website.

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    Multiple Regression cont.

    ANOVAb

    111.267 4 27.817 30.119 .000a

    376.813 408 .924

    488.080 412

    Regression

    Residual

    Total

    Model

    1

    Sum of

    Squares df Mean Square F Sig.

    Predictors: (Constant), Customer control, innovative, Speed of download, Ease of

    use

    a.

    Dependent Variable: Satisfaction with Websiteb.

    Coefficientsa

    .673 .422 1.595 .112

    8.088E-02 .023 .159 3.522 .000

    .293 .040 .319 7.238 .000

    .205 .051 .178 4.040 .000

    .134 .041 .148 3.266 .001

    (Constant)

    Ease of use

    innovative

    Speed of download

    Customer control

    Model1

    B Std. Error

    UnstandardizedCoefficients

    Beta

    StandardizedCoefficients

    t Sig.

    Dependent Variable: Satisfaction with Websitea.

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    Multiple Regression cont.

    In predicting satisfaction ratings of a website wecan use the following equation

    Satisfaction = .673 + 0.08ease + 0.29innov. + 0.21speed + 0.13control

    For every 1 unit increase in ease the satisfactionrating will increase by 0.08 units

    Substituting values for each of the variables will

    produce the overall satisfaction rating of thewebsite.