marketing analytics: experimental testing

10
Experimental Testing Izmir Vodinaj MKMR 310 Fall 2015

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Page 1: Marketing Analytics: Experimental testing

Experimental TestingIzmir VodinajMKMR 310Fall 2015

Page 2: Marketing Analytics: Experimental testing

SUMMARY

OBJECTIVEDetermining if coupon usage

increases the sales or not.

Sample Categories• No coupon usage • Newspaper coupons• Store mailing coupons• Newspaper and store mailing

coupons.

Customer Shopping Intention • Self• Self and Spouse• Self and Family

Key Procedures• Recoding• ANOVA• GLM• Graphing

Page 3: Marketing Analytics: Experimental testing

KEY DATA

Before RecodingUse of Coupons

After RecodingUse of Coupons

Question # 1

Page 4: Marketing Analytics: Experimental testing

Does coupon usage have an effect on amount spent by the customer for in-store purchases?

H0: Coupon Usage does not affect the amount spent by the customer on in-store purchases.

Ha: Coupon Usage does affect the amount spent by the customer on in-store purchases.

Question # 2

INDEPEDENDENT VARIABLE COUPON USAGE

DEPENDENT VARIABLE AMOUNT SPENT

Page 5: Marketing Analytics: Experimental testing

Coupons do affect the amount of purchases made by customers!

Question # 2 A

Lavene’s Test is significant. Therefore, variances are significantly different at different levels, and we will use Games-Howell Post Hoc.

It can be seen that when coupons are given, customers spent more, yet one must check the significance level. Furthermore, the highest amount seems to be when both coupons are used.

1

3

2The results are significant, and they indicate that there is a difference between the groups, but one does not know where the significance lies. F(2,1401) = 7.768; p < 0.001

4 We can see here that the difference between no coupon and both coupons is the only significant value. Therefore, we can determine that the most impact is made when both coupons are used, thus rejecting the null hypothesis.

Page 6: Marketing Analytics: Experimental testing

Does the purpose of shopping have an effect on amount spent by the customer for in-store purchases?

H0: The purpose of shopping does not affect the amount spent by the customer on in-store purchases.

Ha: The purpose of shopping affects the amount spent by the customer on in-store purchases.

Question # 3

INDEPEDENDENT VARIABLE SHOPPING PURPOSE

DEPENDENT VARIABLE AMOUNT SPENT

Page 7: Marketing Analytics: Experimental testing

Purpose of shopping affects the amount of purchases made by customers!

Lavene’s Test is significant. Therefore, variances are significantly different at different levels, and if we had multiple factors will would Games-Howell Post Hoc.It can be seen that when customers shop

for their spouses and their family, their amount spend is higher, yet one must check the significance level.

1

3

2The results are significant, and they indicate that there is a difference between the groups. Thus we conclude that the purpose of shopping makes a difference on the amount spent on in-store purchases, and we reject the null hypothesis. F(1,1402) = 66.912; p < 0.001

Question # 3 A

Page 8: Marketing Analytics: Experimental testing

Does shopping purpose influence the effect of coupon usage on amount spent by the customer for in-store purchases?

H0: The purpose of shopping does not influence the effect of coupon usage on amount spent by the customer on in-store purchases.

Ha: The purpose of shopping influences the effect of coupon usage on amount spent by the customer on in-store purchases.

Question # 4

INDEPEDENDENT VARIABLE SHOPPING PURPOSE

DEPENDENT VARIABLE AMOUNT

SPENT

INDEPEDENDENT VARIABLE

COUPON USAGE

SHOPPING PURPOSE &

COUPON USAGE

Page 9: Marketing Analytics: Experimental testing

Question # 4A

The Interaction is more than .01, thus we fail to reject the null hypothesis. This concludes that the shopping purpose does not influence the effect of coupon usage on the amount spent by the customer. After doing a cost-benefit analysis, the manager should target all of its segments and have both mail and newspapers coupons sent.

Shopping purpose does not influence the effect of coupon usage on amount spent by the customer for in-store purchases!

Highest amount spent

Lowest amount spent

It would be helpful to note here that even though the interaction is not significant, the model accounts for 5.6% of the variance in amount spent. Obviously, we would like to

be able to explain much more of the variance, yet we know many factors influence spending and we would need to compare to another model to see how good this is.

Page 10: Marketing Analytics: Experimental testing

Does shopping style influence the effect of coupon usage on amount spent by the customer for in-store purchases?

Bonus

The Interaction is more than .01, thus we fail to reject the null hypothesis. This concludes that the shopping style does not influence the effect of coupon usage on the amount spent by the customer.

Once again looking at the R square value tells us quite a bit. In this case only .9% of the variance in amount spent is explained by the model. So, not as

useful as the last model.