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Running head: DISCUSSION 4 1
Discussion 4
Student Name:
Institution:
Introduction
Marketing managers are bestowed with the right ensuring company products are well
known in the market. One of the policies marketing managers use to initiate sales and enhance
consumers product knowledge is through product promotion and consumer loyalty programs. To
determine the effectiveness of consumer loyalty program, purchase behavior of consumers from
various regions maybe west, East, North, or South of a city is considered. Availability of
consumer purchase data based on regions is important in determining excellent promotional
programs.
Appropriateness of Hypothesis Test
Hypothesis test carried to asses or validate difference in consumer purchasing behavior
between regions is of great importance. To test whether there exist a significant cross-region
purchasing difference, chi-square test is conducted on the available data. If the chi-test value is
less than the critical value, null hypothesis is rejected else we fail to reject null hypothesis
(Hanin, 2017).
Hypothesis Statement
Theoretical representation
Null hypothesis, 𝐻
0
: No cross-purchase difference between the regions
Null hypothesis, 𝐻
1
: cross-purchase differences between the regions exist
Mathematical representation
H
0
: χ
i
= 0
H
1
: χ
i
0
Goal of Hypothesis Test
The main goal of the hypothesis test is to find out which of the four regions record high purchase
after introduction of consumer loyalty programs. In addition, the hypothesis assists in
determining factors affecting consumers purchase behaviors regionally.
Mechanics of Hypothesis Testing Process
As the marketing manager, I need to conduct a baseline survey analysis. A good base line survey
should have good predictors(Hartman,2016). Some of the predictors of a good base line analysis
include: age, gender, type of breakfast bought, frequency, restaurant recommendation, and
whether to eat or not. Age is one of the factors that are believed to affect purchase behavior of a
consumer. An age bracket really affects consumers purchase habits. Teenagers have different
priorities as compared to adults therefore, age must be considered during data mining process.
Difference in gender influence purchasing habits and abilities. What females prefers to buy it’s
not males preference therefore there is the need to consider gender during baseline analysis.
Type of breakfast bought frequency of purchase too affects quantity purchased. Consumers who
buy in large quantities and frequently increase amount of purchases quantities than those who
buy in low quantities and less frequently. Regions with higher population size are likely to
purchase more than the less populated regions. Therefore, more promotional programs should
target highly populated areas.
Difficulties Experienced During Hypothesis Testing
Data obtained in the study is ordinal and in 4 groups with different factors. To calculate chi-
square which is required to test hypothesis, 8 combinations of data must be used which is
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DISCUSSION 4 2
tedious. Additionally, hypothesis test does not give the extent of difference in purchases between
different regions.
Conclusion
The results of hypothesis test should give an insight of whether cross-region purchase difference
exists. If cross-region difference in purchases exists, then the marketing manager should go
further and check why and where the difference occurs and possible factors attributing to the
difference. Based on the test, a proper promotional program should be developed and initiated.
Reference
Hanin, L. (2017). Why statistical inference from clinical trials is likely to generate false and
irreproducible results. BMC Medical Research Methodology, 171-12.
Hartmann, H. (2016). Statistics for Engineers. Communications Of The ACM, 59(7), 58-66.

Unformatted Attachment Preview

Running head: DISCUSSION 4 1 Discussion 4 Student Name: Institution: Introduction Marketing managers are bestowed with the right ensuring company products are well known in the market. One of the policies marketing managers use to initiate sales and enhance consumers product knowledge is through product promotion and consumer loyalty programs. To determine the effectiveness of consumer loyalty program, purchase behavior of consumers from various regions maybe west, East, North, or South of a city is considered. Availability of consumer purchase data based on regions is important in determining excellent promotional programs. Appropriateness of Hypothesis Test Hypothesis test carried to asses or validate difference in consumer purchasing behavior between regions is of great importance. To test whether there exist a significant cross-region purchasing difference, chi-square test is conducted on the available data. If the chi-test value is less than the critical value, null hypothesis is rejected else we fail to reject null hypothesis (Hanin, 2017). Hypothesis Statement Theoretical representation Null hypothesis, 𝐻0 : No cross-purchase difference between the regions Null hypothesis, 𝐻1 : cross-purchase differences between the regions exist Mathematical representation H0 : χi = 0 H1 : χi ≠ 0 Goal of Hypothesis Test The main goal of the hypothesis test is to find out which of the four regions record high purchase after introduction of consumer loyalty programs. In addition, the hypothesis assists in determining factors affecting consumers purchase behaviors regionally. Mechanics of Hypothesis Testing Process As the marketing manager, I need to conduct a baseline survey analysis. A good base line survey should have good predictors(Hartman,2016). Some of the predictors of a good base line analysis include: age, gender, type of breakfast bought, frequency, restaurant recommendation, and whether to eat or not. Age is one of the factors that are believed to affect purchase behavior of a consumer. An age bracket really affects consumers purchase habits. Teenagers have different priorities as compared to adults therefore, age must be considered during data mining process. Difference in gender influence purchasing habits and abilities. What females prefers to buy it’s not males preference therefore there is the need to consider gender during baseline analysis. Type of breakfast bought frequency of purchase too affects quantity purchased. Consumers who buy in large quantities and frequently increase amount of purchases quantities than those who buy in low quantities and less frequently. Regions with higher population size are likely to purchase more than the less populated regions. Therefore, more promotional programs should target highly populated areas. Difficulties Experienced During Hypothesis Testing Data obtained in the study is ordinal and in 4 groups with different factors. To calculate chisquare which is required to test hypothesis, 8 combinations of data must be used which is DISCUSSION 4 2 tedious. Additionally, hypothesis test does not give the extent of difference in purchases between different regions. Conclusion The results of hypothesis test should give an insight of whether cross-region purchase difference exists. If cross-region difference in purchases exists, then the marketing manager should go further and check why and where the difference occurs and possible factors attributing to the difference. Based on the test, a proper promotional program should be developed and initiated. Reference Hanin, L. (2017). Why statistical inference from clinical trials is likely to generate false and irreproducible results. BMC Medical Research Methodology, 171-12. Hartmann, H. (2016). Statistics for Engineers. Communications Of The ACM, 59(7), 58-66. Name: Description: ...
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