DATA ANALYSIS

Exercises/Writing Assignment # 3
MKT 469 – Fall 2018
DATA ANALYSIS
This assignment has 2 parts:
PART 1: MY EXAMPLE
PART 2: YOUR ASSIGNMENT.
If you go through my example and follow the steps indicated there (PART 1), you should be
able to perform well on your assignment (PART 2).
PART 1
Please read my example/instructions below to be able to work on Assignment #3. Also, read
Chapter 15: Testing for Differences Between Groups and for Predictive Relationships (i.e.,
ANOVA), for a good understanding of the Analysis of Variance.
In this assignment, you will perform a two-way ANOVA analysis. The difference between the
one-way ANOVA (presented in your textbook) and two-way ANOVA is that the former is used
when a researcher is examining the effects of one independent variable (IV) on a dependent
variable (DV); for example, the researcher wants to examine how the price affects purchase
intentions. With the two-way ANOVA, the researcher can examine the effects of two IVs on the
DV; most importantly, the researcher can test how the interaction of two IVs impacts the DV: for
instance, the researcher wants to examine the impact of price on purchase intentions, depending
on whether or not the products are/are not organic. Please note that I am using the same example
(i.e., PRICE and QUALITY), I have used throughout this quarter, such that you can better
understand the marketing research concepts.
Please read the following scenario.
Let’s say I want to examine the effects of PRICE and product QUALITY on PURCHASE
INTENTIONS. More specifically, I am interested in testing if there is an interaction between
PRICE and QUALITY, impacting the purchase intentions. In this case, the IVs are PRICE AND
QUALITY and the DV is PURCHASE INTENTIONS. The variables are measured as follows:
PRICE has two levels: $5/lb (high price) and $2/lb (low price)
QUALITY has two levels: organic apples and conventional apples
PURCHASE INTENTIONS: continuous variable, measured with a 3-item, 7-point scale (1 =
less likely and 7 = more likely).
This is a 2×2 experimental design and the experimental conditions/cells are:
Organic apples at $5/lb
Organic apples at $2/lb
Conventional apples at $5/lb
Conventional apples at $2/lb
I randomly assigned respondents to one of these experimental conditions. In other words,
participants reported their purchase intentions for one of the 4 scenarios.
Now, I have the data and want to compare consumers’ purchase intentions for the high priced vs.
low priced apples (IV1, PRICE), when the apples are organic vs. conventional (IV2, QUALITY).
As previously mentioned, I want to examine whether the results show a 2×2 interaction between
PRICE and QUALITY. To be able to examine these effects, I need to conduct a two-way
ANOVA.*
STEP 1: DATA PREPARATION
I am making sure my data are coded appropriately; for example, I need to provide numerical
values for my qualitative variables. I will create dummy variables and will code QUALITY as
follows: 1, if the apples are organic and 0, if the apples are conventional. I will code PRICE as
follows: 1, if the apples are high priced or $5/lb and 0, if the apples are low priced or $2/lb. For
my DV (Purchase Intentions or PI), I will calculate the average scores for each individual. For
example, my scale had 3 items with scale points 1 (less likely to purchase) and 7 (more likely to
purchase).
*This analysis can be conducted via SPSS, a software package for statistical analyses, only
available on CWU campus. Since this is an online course, I cannot require students to come to
campus and use a CWU-affiliated computer. Therefore, we will use Excel, to conduct our
analysis. Students are expected to be able to use Excel, per the syllabus.
First, let’s look at my data. The data, which should be in an Excel, are likely to look like this:

The table above represents ONLY a few of my data points; however, I have 200 data
points/rows, with 50 rows per each condition:
Condition 1:
1 and 0 = high price and conventional apples
Condition 2:
1 and 1: high price and organic apples
Condition 3:
0 and 1: low price and organic apples
Condition 4:
0 and 0: low price and conventional apples.
STEP 2: CONDUCT TWO-WAY ANOVA
Next, I need to conduct the two-way ANOVA.
I am in my Excel, where all the data are final for analysis. On the Data tab, I click Data
Analysis.* I select Anova: Two Factor with Replication and click OK. I then click in the Input
Range box and select the range $A$1:$C$201 (which basically includes all my data plus the
labels). At Rows per Sample, I chose 50, as there are 50 responses per each condition. For alpha
(which is the p value), I chose 0.10. Then I click on Output Range and then select where, in my
Excel, I want the ANOVA output to be placed; I chose cell $L$6. Lastly, I click OK.
*If you cannot find the Data Analysis button, then you need to load the Analysis ToolPak add-in.
Click the File tab, click Options, and then click the Add-Ins category. In the Manage box,
select Excel Add-ins and then click Go. In the Add-Ins available box, select
the AnalysisToolPak check box, and then click OK.
This is the output from my Excel:

STEP 3: INTERPRET THE RESULTS
a. First, I need to do the F test. Thus, I focus on the last table. At the heart of every type
of ANOVA lies the F-value. I need to compare the F-test statistic for my interaction
(256.28) with a critical F-value. Since the Excel output gave us this value, we don’t have
to look at the F distribution table. Thus, the critical F-value is 2.09781.
F statistic 256.28 > 2.0978, p< 0.10; therefore, there is sufficient evidence to conclude that the
interaction between PRICE and QUALITY significantly impacts purchase intentions. In other
words, the effect of PRICE on consumers’ intentions to purchase apples depends on the quality
of the apples, whether or not they are organic.
b. Next, I need to look at the means associated with each condition, to be able to draw
some relevant conclusions. The mean comparisons can be done by looking at the first
tables, in the Excel output.
The first table gives me the average (2.3) of consumers’ purchase intentions for the PRICE (1)
and QUALITY (0) condition, which is high price and conventional apples.
The second table gives me the average (2.22) of consumers’ purchase intentions for the PRICE
(1) and QUALITY (1) condition, which is high price and organic apples.
The third table gives me the average (3.54) of consumers’ purchase intentions for the PRICE (0)
and QUALITY (0) condition, which is low price and conventional apples.
The third table gives me the average (5.94) of consumers’ purchase intentions for the PRICE (0)
and QUALITY (1) condition, which is low price and organic apples.
Thus, I can conclude the following:
When the price is high or apples sell at $5/lb, there is a very small difference in consumers’
purchase intentions, with regard to conventional versus organic apples. When apples have this
price, it really does not make a difference whether or not they are organic.
However, when the price is low or $2/lb, consumers’ purchase intentions for organic apples are
much higher than conventional apples. Purchase intentions are substantially higher, when the
price for organic apples is low. This tells us that consumers prefer organic apples over
conventional apples; however, price is a major factor in their purchase decision. Therefore, food
marketers should design/implement their promotional and pricing strategies accordingly.
PART 2: YOUR ASSIGNMENT
This will be an individual assignment. You can use your textbook, lectures, and discuss this
assignment with your colleagues but the final work should reflect your own ideas; otherwise, it
will be considered cheating. Per the syllabus and course policies, those assignments that
resemble other students’ assignments, your textbook authors’ ideas, and/or Internet ideas will be
considered cheating/plagiarism. Any instance of cheating/plagiarism will result in failing the
course. For the grading criteria, please read the Syllabus. Instructor feedback will be provided
via Canvas (SpeedGrader).
For this assignment, you will need to submit ONE WORD DOCUMENT, 12-point font size
and Times New Roman, which includes the steps below and ONE EXCEL, which includes
your final data (coded/prepared for ANOVA). You can submit them in Canvas or via email,
should you encounter any problems with Canvas.
Supposedly, you have conducted a between-subjects experiment, where you examined US
consumers’ intentions to purchase apples, depending on their country of origin and quality. You
are asked to test if there is an interaction between COUNTRY OF ORIGIN and QUALITY,
impacting the US consumers’ apple purchase intentions. You randomly assigned your
respondents to one of your experimental conditions. Also, in your experiment, COUNTRY OF
ORIGIN was measured as follows: apples from USA versus apples from ROMANIA.
QUALITY captured whether apples are organic or conventional. Your purchase intentions are
numerical values between 1 and 9, where 1- ‘less likely’ and 9 – ‘most likely’ to purchase. This is
a 1-item scale.
Please work on the next steps, to analyze the data provided and interpret your results.
STEP 1: DATA PREPARATION (10 points)
I have attached a CSV with the data. You need to make sure your data are coded/prepared
appropriately, before you run ANOVA.
In order to obtain the points for this step, you need to submit the Excel, with the final data.
In addition, in the Word document of your Assignment, under STEP 1, you need to present
the way you coded your data and experimental conditions.
STEP 2: CONDUCT TWO-WAY ANOVA (10 points)
You need to conduct your two-way ANOVA, in Excel.
In order to obtain the points for this step, you need to copy and paste your tables, in the
Word doc. of your Assignment, under this STEP 2.
STEP 3: INTERPRET THE RESULTS (20 points)
In order to obtain the points for this step, you need to perform and present the following
analyses, in the Word doc. of your Assignment, under STEP 3.
a. Perform the F test.
b. Perform the mean comparisons.