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Essentials of Marketing Research

AN APPLIED ORIENTATION
MALHOTRA HALL SHAW OPPENHEIM

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

1- 1

PART FOUR

Chapter 11

Advanced Data Analysing

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

1- 2

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.

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-3

ANOVA
Analysis of variance (ANOVA) examines the differences in the mean values of the dependent variable (interval scale) associated with the effect of the controlled independent variable (nominal scale), after taking into account the influence of the uncontrolled 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?

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-4

One-way ANOVA
We are testing to determine the effect of in-store promotion (X) on sales (Y). H0: H1:
Sales 95% Confidence Interval for Mean Lower Bound Upper Bound 7.3432 9.2568 4.9473 7.4527 2.2673 5.1327 5.1213 7.0120

1 = 2 = 3 1 2 3
Descriptiv es

N high medium low Total 10 10 10 30

Mean Std. Deviation 8.3000 1.33749 6.2000 1.75119 3.7000 2.00278 6.0667 2.53164

Std. Error .42295 .55377 .63333 .46221

Minimum 6.00 4.00 1.00 1.00

Maximum 10.00 9.00 7.00 10.00

See Table 11.1 page 317 for the data set

Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 11-5

One-way ANOVA cont.

Main effect (in-store promotion)
Sales Sum of Squares 106.067 79.800 185.867 df 2 27 29 Mean Square 53.033 2.956 F 17.944 Sig. .000 ANOVA

Between Groups Within Groups Total

Reject H0, the means are not equal

Residuals
Dependent Variable: Sales Tukey HSD

Multiple Comparisons

(I) In-store promotion high medium low

(J) In-store promotion medium low high low high medium

Mean Difference (I-J) 2.1000* 4.6000* -2.1000* 2.5000* -4.6000* -2.5000*

Std. Error .76884 .76884 .76884 .76884 .76884 .76884

Sig. .029 .000 .029 .008 .000 .008

95% Confidence Interval Lower Bound Upper Bound .1937 4.0063 2.6937 6.5063 -4.0063 -.1937 .5937 4.4063 -6.5063 -2.6937 -4.4063 -.5937

*. The mean difference is significant at the .05 level.

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Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

One-way ANOVA cont. Interpretation 57.1% (ie. 2 = 106.067/185.856) of the variation in sales is accounted for by in-store promotion, indicating a modest effect. The mean sales figures are different, that is at least one pair of means is statistically different. All combination of means are statistically different, therefore the different levels of in-store promotion will impact sales.

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-7

N-way ANOVA
N-way analysis of variance examines the differences in the mean values of the dependent variable (interval scale) associated with the effect of more than one independent variable (nominal scale). Enables the examination of interactions between the factors.

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-8

N-way ANOVA
We are testing to determine the effect of in-store promotion and couponing (X) on sales (Y). H0: H1: 1 = 2 12

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

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N-way ANOVA cont.

Descriptiv e Statistics Dependent Variable: Sales Coupon level $20 store-wide coupon In-store promotion high medium low Total high medium low Total high medium low Total Mean 9.2000 7.6000 5.4000 7.4000 7.4000 4.8000 2.0000 4.7333 8.3000 6.2000 3.7000 6.0667 Std. Deviation .83666 1.14018 1.14018 1.88225 1.14018 .83666 .70711 2.43389 1.33749 1.75119 2.00278 2.53164 N 5 5 5 15 5 5 5 15 10 10 10 30

No coupon

Total

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

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N-way ANOVA cont.

Tests of Between-Subj ects Effects Dependent Variable: Sales Type III Sum Source of Squares Corrected Model 162.667 a Intercept 1104.133 COUPON 53.333 INSTORE 106.067 COUPON * INSTORE 3.267 Error 23.200 Total 1290.000 Corrected Total 185.867 df 5 1 1 2 2 24 30 29 Mean Square 32.533 1104.133 53.333 53.033 1.633 .967 F 33.655 1142.207 55.172 54.862 1.690 Sig. .000 Overall .000 .000 Main effect .000 Main effect .206 Interaction

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

Main effect of promotion is significant Main effect of coupon is significant

Malhotra Hall Shaw Oppenheim

Interaction is not significant

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

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N-way ANOVA cont. Interpretation Higher level of in-store promotion results in higher sales The distribution of a storewide coupon results in higher sales The effect of each is independent of the other

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-12

Analysis of Covariance
Examine differences in the mean values of the dependent variable related to the effect of the controlled independent variables. Dependent variable [metric] Independent variable [one categorical and one metric] Example To determine the effect of in-store promotion and couponing on sales while controlling for the affluence of clientele.

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-13

Analysis of Covariance cont.

Tests of Between-Subj ects Effects Dependent Variable: Sales Type III Sum Source of Squares Corrected Model 163.505 a Intercept 103.346 CLIENTEL .838 COUPON 53.333 INSTORE 106.067 COUPON * INSTORE 3.267 Error 22.362 Total 1290.000 Corrected Total 185.867 df 6 1 1 1 2 2 23 30 29 Mean Square 27.251 103.346 .838 53.333 53.033 1.633 .972 F 28.028 106.294 .862 54.855 54.546 1.680 Sig. .000 .000 .363 .000 .000 .208

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

Not significant

We can conclude that the affluence of the clientele does not have an effect on the sales of the department store
Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 11-14

Multivariate Analysis of Variance (MANOVA)

Examine group differences across multiple dependent variables simultaneously Appropriate when 2 or more dependent variables are correlated

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-15

Correlation coefficient
The correlation coefficient, r, is a statistic summarising the strength of association between two metric (interval or ratio) variables.

-1
Strong negative relationship

0
No relationship

+1
Strong positive relationship

Examples How strongly are sales related to advertising expenditure? Are consumers perceptions of quality related to their perceptions of price?
Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 11-16

Correlation coefficient cont.

Correlations Trust the Satisfaction website with Website 1 .179** . .000 446 424 .179** 1 .000 . 424 425

Trust the website

Satisfaction with Website

Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N

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

Positive relationship between trust and satisfaction

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-17

Regression Analysis
M odel Summary Adj usted R Square .030 Std. Error of the Esti mate 1.09066

M odel 1

R .179 a

R Square .032

a. Predi ctors: (Constant), T rust the websi te

b ANOVA

M odel 1

Regressi on Resi dual Total

Sum of Squares 16.598 501.986 518.584

df 1 422 423

M ean Square 16.598 1.190

F 13.953

Si g. .000 a

a. Predi ctors: (Constant), Trust the websi te b. Dependent Vari abl e: Sati sfaction with Websi te

Model is significant
Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 11-18

Regression Analysis cont.

Coefficientsa Unstandardized Coefficients B Std. Error 4.102 .199 .143 .038 Standardized Coefficients Beta .179

Model 1

(Constant) Trust the website

t 20.656 3.735

Sig. .000 .000

a. Dependent Variable: Satisfaction with Website

Sales = 4.1 + 0.14 Trust

Significant linear relationship between satisfaction with the website and trust in the website

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-19

Partial correlation coefficient

Correlations Satisfaction Speed of Customer Trust the with Website Ease of use Sociable innovative download control website Appearance 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 Satisfaction with Website Pearson Correlation Sig. (2-tailed) N Ease of use Pearson Correlation Sig. (2-tailed) N Sociable Pearson Correlation Sig. (2-tailed) N innovative Pearson Correlation Sig. (2-tailed) N Speed of download Pearson Correlation Sig. (2-tailed) N Customer control Pearson Correlation Sig. (2-tailed) N Trust the website Pearson Correlation Sig. (2-tailed) N Appearance Pearson Correlation Sig. (2-tailed) N

**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-20

Multiple Regression
M odel Summary Adj usted R Square .231 Std. Error of the Esti mate .95995

M odel 1

R .494 a

R Square .245

a. Predi ctors: (Constant), Trust the websi te, i nnovati ve, Ease of use, Speed of downl oad, Sociabl e, Custom er control , Appearance

ANOVAb Sum of Squares 113.922 352.013 465.936

Model 1

df 7 382 389

Regression Residual Total

Mean Square 16.275 .922

F 17.661

Sig. .000 a

a. Predictors: (Constant), Trust the website, innovative, Ease of use, Speed of download, Sociable, Customer control, Appearance b. Dependent Variable: Satisfaction with Website

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

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Multiple Regression cont.

Coefficientsa Unstandardized Coefficients B Std. Error (Constant) .283 .450 Appearance 9.897E-02 .051 Ease of use 5.793E-02 .024 Sociable 6.352E-02 .034 innovative .220 .046 Speed of download .181 .054 Customer control .117 .044 Trust the website 5.230E-02 .038 Standardized Coefficients Beta .097 .115 .093 .237 .156 .129 .067

Model 1

t .629 1.951 2.425 1.891 4.757 3.359 2.658 1.373

Sig. .530 .052 .016 .059 .000 .001 .008 .171

a. Dependent Variable: Satisfaction with Website

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-22

Multiple Regression cont. Interpretation 1 The overall model model is significant at = 0.05
H0: 1 = 2 = 3 = 4 = 5 = 6 = 7 =0 H 1: 1 2 3 4 5 6 7 0

2 Testing which of the independent variables have a significant

impact on satisfaction with the website H 0: 1 = 0 H 1: 1 0 Ease of use, innovative website,speed of download, and respondents perception of control are significant variables in influencing satisfaction rating of the website.

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-23

Multiple Regression cont.

ANOVAb Sum of Squares 111.267 376.813 488.080

Model 1

df 4 408 412

Regression Residual Total

Mean Square 27.817 .924

F 30.119

Sig. .000 a

a. Predictors: (Constant), Customer control, innovative, Speed of download, Ease of use b. Dependent Variable: Satisfaction with Website
Coefficientsa Unstandardized Coefficients B Std. Error (Constant) .673 .422 Ease of use 8.088E-02 .023 innovative .293 .040 Speed of download .205 .051 Customer control .134 .041 Standardized Coefficients Beta .159 .319 .178 .148

Model 1

t 1.595 3.522 7.238 4.040 3.266

Sig. .112 .000 .000 .000 .001

a. Dependent Variable: Satisfaction with Website

Malhotra Hall Shaw Oppenheim Essentials of Marketing Research Copyright 2004 Pearson Education Australia 11-24

Multiple Regression cont. In predicting satisfaction ratings of a website we can use the following equation
Satisfaction = .673 + 0.08ease + 0.29innov. + 0.21speed + 0.13control

For every 1 unit increase in ease the satisfaction rating will increase by 0.08 units Substituting values for each of the variables will produce the overall satisfaction rating of the website.

Malhotra Hall Shaw Oppenheim

Essentials of Marketing Research Copyright 2004 Pearson Education Australia

11-25