Meikhtila University of Economics

MBA Programme
Marketing Research
MBA - 236

Chapter 11: DATA ANALYSIS: FREQUENCY

DISTRIBUTION, HYPOTHESIS TESTING,
AND CROSS TABULATION

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 Learning Objectives
Understand why preliminary data analysis is desirable and
the type of insights that can be obtained from such analysis.
Explain what is meant by frequency counts and what
measures are associated with such analysis.
Describe the general procedure for hypothesis testing and
the steps involved.
Discuss how cross-tabulation analysis should be conducted
and the associated statistics.
Understand the chi-square statistic and the purpose for
which it is used.
Discuss the other statistics used to assess the association
between two variables and when these statistics are used.
Describe the SPSS and Excel programs available for
2 conducting frequency and cross-tabulation analyses.
 Relationship of This Chapter to the
Marketing Research Process
Step 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Secondary and Qualitative Survey and Experimental Measurement Questionnaire Sampling Preliminary
Syndicated data Research Observation Research and Scaling and Form Process and Plan of Data
Analysis Research Design Sample Size Analysis

Step 4: Doing Field Work/ Collecting Data

Step 5: Preparing and Analyzing Data

3 Step 6: Preparing and Presenting the Report

 Research in Practice
West Point: Patriotism, It Aint
Reason Number Percentage

Quality education/ academics 44 26

Teaches life lessons/ values/ discipline 35 21

Prepare for career (military or otherwise) 34 20

Want to join the military 17 10

Patriotism 13 8

Excellent reputation 12 7

Other Reasons 13 8

Total 168 100

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 Frequency Distribution
Marketing researchers often need to answer questions
about a single variables, for example:
What percentage of the market consist of heavy users,
medium users, light users, and nonusers?
What is the income distribution of brand users? Is this
distribution skewed toward low-income brackets?
The answers to these kinds of questions can be determined
by examining frequency distributions.
Frequency distribution is a mathematical distribution with
the objective of obtaining a count of the number of
responses associated with different values of one variable
and to express these counts in percentage terms.
A frequency distribution for a variable produces a table of
frequency counts, percentages, and cumulative percentages
5 for all the values associated with that variable.
 Frequency Distribution of Attitude
Toward Tommy Hilfiger
Value Label Value Frequency Percentage Valid Cumulative
Percentage Percentage
Very 1 5 11.1 11.4 11.4
unfavorable

2 6 13.3 13.6 25.0

3 6 13.3 13.6 38.6

4 6 13.3 13.6 52.3

5 8 17.8 18.2 70.5

6 9 20.0 20.5 90.9

Very 7 4 8.9 9.1 100.0

favorable
Missing 9 1 2.2 Missing

6 Total 45 100.0 100.0

 Conducting Frequency Analysis
Calculate the Frequency and Percentage for Each Value of the
Variable

Calculate the Percentage and Cumulative Percentage for Each

Value, Adjusting for Any Missing Values

Plot the Frequency Histogram

Calculate the Descriptive Statistics: Measures of Location, and

7 Variability
 Frequency Distribution (Contd)
A frequency distribution also indicates the shape of the
empirical distribution of the variable.
The frequency data can be used to construct a histogram, or a
vertical bar chart, in which the values of the variable are
portrayed along the x-axis and the absolute or relative
frequencies of the values are placed along the y-axis.
9
8
7
6
Frequency

5
4
3
2
1
0
8 1 2 3 4 5 6 7
Attitude Toward Tommy Hilfiger
 Statistics Associated with Frequency
Distribution

Statistics associated with

frequencies

(1) Measures (II) Measures

of Location of Variability

Range
Mean
Variance
Mode
Standard
Median
9 Deviation
 Symbols for Population and Sample
Variables
Variable Population Sample

Mean X

Proportion

Variance 2 s2

Standard deviation s

Size N n

Standard error of the mean x sx

Standard error of the p sp

proportion
X X X
10 Standardized variate (z)
sx
 Introduction to Hypothesis Testing

Hypotheses are
Unproven statements or propositions of interest to the
researcher.

Declarative and can be tested statistically.

Possible answers to research questions.

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 A General Procedure for Hypothesis Testing
Step 1: Formulate H0 and H1

Step 2: Select Appropriate Test

Step 3: Choose Level of Significance,

Step 4: Collect Data and Calculate the Test Statistic

Step 5: Determine Probability Associated with the Test Statistic

Step 6: Compare with Level of Significance, (/2)

Step 7: Reject or Do Not Reject H0

12 Step 8: Draw Marketing Research Conclusion

 Step 1: Formulating the Hypothesis
The first step is to formulate the null and alternative hypotheses.

Null Hypothesis H0 = No difference or No effect

The null hypothesis refers to a specified value of the population

parameter (e.g., , , ), not a sample statistic (e.g., X )

Alternative Hypothesis H1 = Some difference or effect

One-tailed test is a test of the null hypothesis where the

alternative hypothesis is expressed directionally.
Two-tailed test is a test of the null hypothesis where the
alternative hypothesis is not expressed directionally but is
bidirectional.
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 Step 2: Selecting an Appropriate Test
Test statistic is a measure of how close the sample has
come to the null hypothesis.
It often follows a well-known distribution, such as the
normal, t, or chi-square distribution.

p
z=
p

The normal distribution is bell-shaped and symmetric.

Its measures of central tendency are identical.

( )
p =
n
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 Step 3: Choosing Error Level of
Significance

Level of
Significance
Type I Error /
Alpha ()
error

Power of a Test
(1- )

Type II Error /
Beta () error
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 Step 4: Data Collection
The required data are collected and the value of the test
statistic computed.
Example: Suppose 500 customers were surveyed and
220 expressed a preference for the new return policy.

The value of the sample proportion : p = = .

( ) . ( . )
The value of p = = = 0.0219
n

p . .
The test statistic z = = = 1.83
p .
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 Step 5: Determining the Probability
p value is the probability of observing a value of the test
statistic as extreme as, or more extreme than, the value
actually observed, assuming that the null hypothesis is
true.
Chosen Level of Significance,
Area = 0.9664 = 0.05; Area = 0.05

Area = 0.0336

0
Z=1.83
Z=1.645

17 Probability of Z with a One-Tailed Test

 Step 6 and 7: Comparing the Probability and
Making the Decision

(a) One-Tailed Test

Test Statistic

In a one-tailed test, if the probability associated with the

calculated or observed value of the test statistic is less than
the level of significance (), the null hypothesis is rejected
because the rejection region for rejecting the null
18 hypothesis lies in only one direction.
 Step 6 and 7: Comparing the Probability and
Making the Decision (Contd)

(b) Two-Tailed Test

/2 /2

Test Statistic

In a two-tailed test, if the probability associated with the

calculated or observed value of the test statistic is less
than the level of significance divided by two (/2), the
19 null hypothesis is rejected.
 Step 8: Marketing Research Conclusion
The conclusion reached by hypothesis must be expressed in
terms of the marketing research problem and the managerial
action that should be taken.

A Classification of Hypothesis-Testing Procedures

Hypothesis testing can be related to either an examination

of associations or an examination of differences.
Hypothesis
Testing
Fig11.8; A Broad
Classification of
Test of Test of
Association Difference
Hypothesis-Testing
Procedures

20 Means Proportions
 Cross Tabulation
Cross-tabulation is a statistical technique that describes
two or more variables simultaneously and results in tables
that reflect the joint distribution of two or more variables
that have a limited number of categories or distinct values.
Contingency table contains a cell for every combination of
categories of two variables.
Bivariate cross-tabulation is a cross-tabulation with two
variables.

A Cross-Tabulation of Gender and Usage of Tommy Hilfiger Clothing

Gender
Usage Row Total
Female Male
Light Users 14 5 19
Medium Users 5 5 10
Heavy Users 5 11 16
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Column Total 24 21
 Cross Tabulation (Contd)
Usage of Tommy Hilfiger Clothing by Gender
Gender
Usage
Female Male
Light Users 58.4% 23.8%
Medium Users 20.8% 23.8%
Heavy Users 20.8% 52.4%
Column Total 100.0% 100.0%

Gender by Usage of Tommy Hilfiger Clothing

Gender
Usage Row Total
Female Male
Light Users 73.7% 26.3.% 100.0%
Medium Users 50.0% 50.0% 100.0%
22 Heavy Users 31.2% 68.8% 100.0%
 Statistics Associated with Cross-Tabulation

Contingency
Phi Coefficient Coefficient Cramers V

Measure

Strength of
Association

Testing

Statistically Chi-Square Not

Significant Test Significant

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 Statistics Associated with Cross-Tabulation
(Contd)
Chi-Square Test of Association

Do Not
Reject H0 Level of
Significance,

Reject H0

xxxxxxxxxxxxx
2

Degree of Freedom df = (r-1) (c-1)

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 Cross-Tabulation in Practice
Construct the Cross-Tabulation Data

Calculate the Chi-Square Statistic; Test the Null Hypothesis of No Association

Reject H0?

NO YES

Determine the Strength of

No Association Association Using an
Appropriate Statistic

Interpret the Pattern of Relationship by Calculating Percentages in the

25 Direction of the Independent Variable, Across the Dependent Variable
 Software Applications

Programs for;
Computing Frequency
Distributions,
Performing Cross-Tabulations,
Testing Hypothesis

SPSS Excel

26 In this PowerPoint, only the ways for SPSS is expressed.

 SPSS Windows (Frequencies)
Step 1: Select ANALYZE on the SPSS menu bar.

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 SPSS Windows (Frequencies) (Contd)
Step 2: Click DESCRIPTIVE STATISTICS, and select
Frequencies.

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 SPSS Windows (Frequencies) (Contd)
Step 3: Move the variable Attitude toward Tommy Hilfiger
[attitude] to the VARIABLES(S) box.
Step 4: Click Statistics

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 SPSS Windows (Frequencies) (Contd)
Step 5: Select MEAN, MEDIAN, MODE, STD. DEVIATION,
VARIANCE, and RANGE.
Step 6 : Click Continue.

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 SPSS Windows (Frequencies) (Contd)
Step 7: Click Charts.

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 SPSS Windows (Frequencies) (Contd)
Step 8: Click HISTOGRAM, then click CONTINUE.

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 SPSS Windows (Frequencies) (Contd)
Step 9: Click OK.

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 SPSS Windows (Cross-Tabulation)
Step 1: Select ANALYZE on the SPSS menu bar.
Step 2: Click DESCRIPTIVE STATISTICS, and select
CROSSTABS.

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 SPSS Windows (Cross-Tabulation)
Step 3: Move the variable User Group [usergr] to the
ROW(S) bos.
Step 4: Move the variable Sex [sex] to the COLUMN(S) box.
Step 5: Click CELLS.

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 SPSS Windows (Cross-Tabulation)
Step 6: Select OBSERVED under COUNTS, and select
COLUMN under PERCENTAGES.
Step 7: Click CONTINUE.

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 SPSS Windows (Cross-Tabulation)
Step 8: Click STASTISTICS.

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 SPSS Windows (Cross-Tabulation)
Step 9: Click CHI-SQUARE, PHI, and CRAMERS V.
Step 10: Click Continue.

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 SPSS Windows (Cross-Tabulation)
Step 11: Click OK.

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