chapter15.ppt 737KB Dec 31 1997 01:35:22 PM

Chapter XV
Chapter XV
Frequency Distribution,
Cross-Tabulation, and
Hypothesis Testing

Chapter Outline
1) Overview
2) Frequency Distribution
3) Statistics Associated with Frequency Distribution
i. Measures of Location
ii. Measures of Variability
iii. Measures of Shape
4) Introduction to Hypothesis Testing
5) A General Procedure for Hypothesis Testing

6) Cross-Tabulations
i. Two Variable Case
ii. Three Variable Case
iii. General Comments on Cross-Tabulations
7) Statistics Associated with Cross-Tabulation

i. Chi-Square
ii. Phi Correlation Coefficient
iii. Contingency Coefficient
iv. Cramer’s V
v. Lambda Coefficient
vi. Other Statistics

8) Cross-Tabulation in Practice
9) Hypothesis Testing Related to Differences
10) Parametric Tests
i. One Sample
ii. Two Independent Samples
iii. Paired Samples
11) Non-parametric Tests
i. One Sample
ii. Two Independent Samples
iii. Paired Samples

12) Internet and Computer Applications
13) Focus on Burke

14) Summary
15) Key Terms and Concepts
16) Acronyms

Internet Usage Data

Table 15.1

RESPONDENT SEX FAMILIARITY INTERNET
OF INTERNET
NUMBER
USAGE
Shopping
Banking
1
2
3
4

6

7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26

27
28
29

1.00
7.00
2.00
2.00
2.00
3.00
2.00
3.00
13.007.00
2.00
4.00
2.00
2.00
2.00
3.00
2.00

3.00
1.00
9.00
2.00
4.00
2.00
5.00
1.00
6.00
1.00
6.00
1.00
6.00
2.00
4.00
1.00
6.00
1.00
4.00
1.00

7.00
2.00
6.00
1.00
6.00
1.00
5.00
2.00
3.00
1.00
7.00
2.00
6.00
1.00
6.00
2.00
5.00
2.00
4.00
1.00

4.00

14.007.00
6.00
2.003.00
3.00
3.004.00
3.00
3.007.00
5.00
7.00
1.001.00
6.005.00
4.00
2.004.00
5.00
6.005.00
4.00
6.006.00
4.00

15.007.00
6.00
3.004.00
3.00
4.006.00
4.00
9.006.00
5.00
8.003.00
2.00
5.005.00
4.00
3.004.00
3.00
9.005.00
3.00
4.005.00
4.00
14.006.00
6.00

6.006.00
4.00
9.004.00
2.00
5.005.00
4.00
2.004.00
2.00
15.006.00
6.00
6.00
5.00
13.00
6.00
4.00
5.00
2.00
3.00
4.00
5.00


ATTITUDE TOWARD
Internet
1.001.00
2.002.00
1.002.00
1.002.00

3.00
6.00
5.00
2.00
3.00

1.002.00
2.002.00
2.002.00
1.002.00
1.002.00
2.002.00

2.002.00
2.001.00
2.002.00
1.002.00
2.002.00
1.001.00
1.002.00
1.001.00
2.002.00
2.002.00
2.001.00
2.002.00
1.001.00

USAGE

Technology

5

1.002.00
1.001.00
1.001.00
2.002.00
1.002.00

1.00

7.00

Frequency Histogram

Figure 15.1

8
7

Frequency

6
5
4
3
2
1
0

2

3

4

Familiarity

5

6

7

Figure 15.2

Skewness of a Distribution

Symmetric Distribution

Mean
Median
Mode
(a)

Skewed Distribution

Mean Median Mode
(b)

Fig. 15.3

Steps Involved in Hypothesis Testing
Formulate H0 and H1
Select Appropriate Test
Choose Level of Significance, 
Collect Data and Calculate Test Statistic

Determine Probability
Associated with Test
Statistic

Determine Critical
Value of Test Statistic
TSCR

Compare with Level of
Significance,

Determine if TSCR falls
into (Non) Rejection
Region

Reject or Do not Reject H0
Draw Marketing Research Conclusion

Probabilities of Type I & Type II Error

Figure 15.4

95% of
Total Area


= 0.05

 = 15
Z  = 1.645
Critical Value
99% of
of Z
Total Area

Z

 = 0.01
  = 17
Z = -2.33

Z

Fig. 15.5

Probability of z with a One-Tailed Test
Shaded Area
= 0.9664

Unshaped Area
= 0.0336

0

z = 1.83

A Broad Classification of Hypothesis Tests

Figure 15.6

Hypothesis Tests

Tests of
Differences

Tests of
Association

Distributions

Means

Proportions

Median/
Rankings

Table 15.2

Frequency Distribution of Familiarity
with the Internet

Value label  
Not so familiar

Very familiar
Missing

Value   
    
1
2
3
4
5
6
7
9
TOTAL

Valid
    
Frequency (
 N)
         Percentage
  
    percentage
    
   

Cumulative
    
percentage

    0
2
6
6
3
8
4
      1   

    0.0          
0.0                        
0.0
6.7
  6.9
    6.9
20.0
20.7
  27.6
20.0
20.7
  48.3
10.0
10.3
  58.6
26.7
27.6
  86.2
  13.3 13.8
100.0
       
    3.3

 30

100.0

100.0

Gender and Internet Usage

Table 15.3

Sex
Internet Usage

Male

Female

Row
Total

Light (1)

 5

10

15

Heavy (2)

10

  5

15

            Column Total    15

15

Internet Usage by Sex

Table 15.4

   

              Sex

Internet Usage

Male

Female

Light

33.3%

66.7%

Heavy

66.7%

33.3%

Column total  100%

 100%

Fig. 15.7

Introduction of a Third Variable in
Cross-Tabulation
Original Two Variables

Some Association
between the Two
Variables

No Association
between the Two
Variables

Introduce a Third
Variable

Introduce a Third
Variable

Refined Association
between the Two
Variables

No Association
between the Two
Variables

No Change in
the Initial
Pattern

Some Association
between the Two
Variables

Table 15.5

Sex by Internet Usage
      Internet Usage

Sex

Light

Heavy

Total

Male
 

33.3%

66.7%

100.0%

Female

66.7%

33.3%

100.0%

Table 15.6

Purchase of Fashion Clothing by
Marital Status
Purchase of
Fashion
Clothing

Current Marital Status
Married

Unmarried

High

31%

52%

Low

69%

48%

Column

100%

100%

700

300

Number of
respondents

Table 15.7

Purchase of Fashion Clothing by
Marital Status

Pur chase of
Fashion
Clothing

                                      Sex
Male
Marr ied

            Female

High

35%

Unmarried
Not
Mar r ied
40%

Mar r ied

Low

65%

60%

75%

40%

Column
totals
Number  of
cases

100%

100%

100%

100%

400

120

300

180

25%

Unmarried
Not
Mar r ied
60%

Table 15.8

Ownership of Expensive
Automobiles by Education Level

Own Expensive
Automobile

Education
College Degr ee

No College Degr ee

Yes

32%

21%

No

68%

79%

Column totals

100%

100%

250

750

Number  of cases

Table 15.9

Ownership of Expensive Automobiles
by Education Level and Income Levels

Own
Expensive
Automobile

                                  Income
Low Income
College
Degr ee

       High Income

Yes

20%

No
College
Degr ee
20%

College
Degr ee
40%

No
College
Degr ee
40%

No

80%

80%

60%

60%

Column
totals
Number  of
r espondents

100%

100%

100%

100%

100

700

150

50

Table 15.10

Desire to Travel Abroad by Age

Desir e to Tr avel Abr oad

Age
Less than 45

45 or  Mor e

Yes

50%

50%

No

50%

50%

Column totals

100%

100%

500

500

Number  of respondents

Table 15.11

Desir e to
Tr avel
Abr oad

Desire to Travel Abroad
by Age and Sex
                                       Sex
                    Male
                     Age

            Female
              Age

=45

=45

Yes

60%

40%

35%

65%

No

40%

60%

65%

35%

Column
totals
Number  of
Cases

100%

100%

100%

100%

300

300

200

200

Table 15.12

Eating Frequently in Fast Food
Restaurants by Family Size

Eat Fr equently in Fast
Food Restaurants

Family Size
Small

Lar ge

Yes

65%

65%

No

35%

35%

Column totals

100%

100%

500

500

Number  of cases

Figure 15.8

Chi-Square Distribution

Do Not Reject
H0

Reject H0

Critical
Value

2

A Classification of Hypothesis Testing
Procedures for Examining Differences

Fig. 15.9

Hypothesis Tests
Non-parametric Tests
(Nonmetric Tests)

Parametric Tests
(Metric Tests)
One Sample
* t test
* Z test

Two or More
Samples

Independent
Samples
* Two-Group
t test
* Z test

Paired
Samples
* Paired
t test

One Sample
* Chi-Square
* K-S
* Runs
* Binomial

Two or More
Samples

Independent
Samples
* Chi-Square
* Mann-Whitney
* Median

Paired
Samples
* Sign
* Wilcoxon
* McNemar
*

Table 15.13

Eating Frequently in Fast Food
Restaurants by Family Size & Income

Eat
                                     Income
Fr equently
                      Low
              High
in Fast Food                 Family size
          Family size
Restaurants
Small
Large
Small
Lar ge
Yes

65%

65%

65%

65%

No

35%

35%

35%

35%

Column
totals
Number  of
Respondents

100%

100%

100%

100%

250

250

250

250

Table 15.14

Two Independent-Samples t Tests
Summary Statistics

Male
Female

Number
of  Cas es

Mean

Standard
Deviation

15
15

9.333
3.867

1.137
0.435

F Test for Equality of Variances
F
value

2­tail
probability

15. 507

.000

t Test
Equal Variances  As s umed
t
value

- 4.492

Degrees of
2­tail
freedom probability
28

. 000

Equal Variances  Not As sumed
t
value
­4.492

Degrees of
2­tail
freedom probability
18.014

.000

Paired-Samples t Test

Table 15.15

Variable

Number
of Cases
30
30

Internet Attitude
Technology Attitude

Mean

Standard
Deviation

Standard
Error

5.167
4.100

1.234
1.398

.225
.255

Difference = Internet ­ Technology
Difference
Mean

Standard
deviation

1.067

0.828

Standard
2­tail
error     Correlation  prob.
.1511

.809

.000

t
value

Degrees of
freedom

2­tail
probability

7.059

29

.000

Table 15.16

K-S One-Sample Test for
Normality For Internet Usage
Test Distribution ­ Normal

Mean:
Standard Deviation:
Cases:

6.600
4.296
30

Most Extreme Differences
Absolute
Positive
Negative
.222
.222
­ .142

K­S z
1.217

2­Tailed p
.103

Table 15.17

Mann-Whitney U - Wilcoxon Rank
Sum W Test
Internet Usage by Sex

Sex

Mean Rank

Cases

20.93
10.07

15
15

Male
Female
Total

30

U
31.000

W
151.000

z

Corrected for ties
2­tailed p

­3.406

.001

Note
U = Mann­Whitney test statistic
W = Wilcoxon W Statistic
z = U transformed into a normally distributed z statistic.

Wilcoxon Matched-Pairs
Signed-Rank Test
Internet With Technology

Table 15.18

(Technology ­ Internet)

Cases

­Ranks

23

+Ranks

1

Ties

6

Total

30

z  =  ­4.207

Mean rank
12.72
7.50

2­tailed p = .0000

Table 15.19

Sample

A Summary of Hypothesis Tests
Related to Differences
Application

Level of Scaling

Test/Comments

One sample

Distributions

Nonmetric

K­S and chi­square for
goodness of fit
Runs test for randomness
Binomial test for goodness of
fit for dichotomous variables

One sample

Means

Metric

t test, if variance is unknown
z test, if variance is  known

One Sample

Proportions

Metric

z test

One Sample

Contd.

Table 15.19 Contd.
Two Independent Samples
Two independent samples

Distributions

Nonmetric

K­S two­sample test for examining the
equivalence of two distributions

Two independent samples

Means

Metric

Two­group t test
F test for equality of variances

Two independent samples

Proportions

Metric
Nonmetric

z test
Chi­square test

Two independent samples

Rankings/Medians

Nonmetric

Mann­Whitney U test  is more
powerful than the median test

Paired samples

Means

Metric

Paired t test

Paired samples

Proportions

Nonmetric

McNemar test for binary variables
Chi­square test

Paired samples
 test

Rankings/Medians

Nonmetric

Wilcoxon matched­pairs ranked­signs
is more powerful than the sign test

  

Paired Samples

RIP15.1

International Brand Equity - The
Name Of The Game

In the 90s, the trend is toward global marketing. How can marketers
market a brand abroad where there exists diverse historical and
cultural differences. According to Bob Kroll, the former president of
Del Monte International, uniform packaging may be an asset, yet,
catering to individual countries' culinary taste preferences is more
important. One recent survey on international product marketing
makes this clear. Marketing executives now believe it's best to think
globally but act locally. Respondents included 100 brand and
product managers and marketing people from some of the nation's
largest food, pharmaceutical, and personal product companies. 39%
said that it would not be a good idea to use uniform packaging in
foreign markets while 38% were in favor of it. Those in favor of
regionally targeted packaging, however, mentioned the desirability of
maintaining as much brand equity and package consistency as
possible from market to market.

RIP15.1 Contd.

But they also believed it was necessary to tailor the package to fit
the linguistic and regulatory needs of different markets. Based on
this finding, a suitable research question can be: Do consumers in
different countries prefer to buy global name brands with different
packaging customized to suit their local needs? Based on this
research question, one can frame a hypothesis that other things being
constant, standardized branding with customized packaging for a
well established name brand will result in greater market share. The
hypotheses may be formulated as follows:
H0: Standardized branding with customized packaging for a well
established name brand will not lead to greater market share in the
international market.
H1: Other factors remaining equal, standardized branding with
customized packaging for a well established name brand will lead to
greater market share in the international market.

RIP15.1 Contd.

To test the null hypothesis, a well established brand like Colgate
toothpaste which has followed a mixed strategy can be selected.
The market share in countries with standardized branding and
standardized packaging can be compared with market share in
countries with standardized branding and customized packaging,
after controlling for the effect of other factors. A two
independent samples t test can be used.

RIP15.2

Statistics Describe Distrust

Descriptive statistics indicate that the public perception of
ethics in business, and thus ethics in marketing, are poor. In
a poll conducted by Business Week, 46% of those surveyed
said that the ethical standards of business executives are
only fair. A Time magazine survey revealed that 76% of
Americans felt that business managers (and thus
researchers) lacked ethics and this lack contributes to the
decline of moral standards in the U.S. However, the general
public is not alone in its disparagement of business ethics.
In a Touche Ross survey of businesspersons, results showed
that the general feeling was that ethics were a serious
concern and media portrayal of the lack of ethics in
business has not been exaggerated.