BRM Project - SPSS

Study Based on Cold Drinks

Ankur Gupta - B12072 Shaily Khasgiwala B12-112 Shashank Sharma B12-113 Sumeet Tayal B12-122 Radesh Aggarwal B12102

Table of Contents
Purpose of the Study............................................................................................................................... 2 Chi Square test ........................................................................................................................................ 2 Cramers V coefficient Test ...................................................................................................................... 3 Cochran Test ........................................................................................................................................... 4 Friedman Two-way ANOVA .................................................................................................................... 5 Dunns Multiple Comparison test for K related Samples ........................................................................ 6 Point Bi-serial Correlation ....................................................................................................................... 7 Multiple Regression Analysis .................................................................................................................. 9 Kolgomorov Smirnov One Sample Test ................................................................................................ 10 Kruskal Wallis One way ANOVA ..................................................................................................... 10

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Purpose of the Study

The Basic purpose of this survey and analysis is the study of the buying behaviour of the cold drinks. Since it is believed that soft-drinks are mostly driven by impulse buying behaviour and are dependent on the season, we think that it is important to understand if this hypnosis is really true. Further, the independence and dependence on various variables need to statistically study to conclude whether buying behaviour doesnt have any pattern and correlation. Following is the survey that we sent to 100 people across various age groups Random sampling. Out of these we received 40 responses. We therefore will conduct the study based on these 40 sample data points.

Chi Square test

Purpose
This test is used to find whether there is a significant difference between the two quantitative variables that are measured on the nominal scale. In our case the two categories have been the age group and the most brought (brand) soft-drink.

Requirements
a. Variables should be measured on nominal scale b. There should be independence among the measures. c. Test should be conducted on actual frequencies. Null Hypothesis, H0 = There is no association between the most brought brand and the age group of respondents. Alternate Hypothesis, H1 =The two variables are dependent.

Snapshot from SPSS

Case Processing Summary Cases Valid N Age * Most_Bought 40 Percent 100.0% N 0 Missing Percent 0.0% N 40 Total Percent 100.0%

Age * Most_Bought Crosstabulation Count

Coke

Pepsi

Sprite

Thums Up

Fanta

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Most_Bought

Total

18-20 21-23 Age 24-26 Above 26 Total

1 4 8 1 14

0 2 2 0 4

1 3 2 0 6

0 1 8 1 10

1 1 3 1 6

3 11 23 3 40

Chi-Square Tests Value df Asymp. Sig. (2sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases a. 40 8.709a 10.036 .409 12 12 1 .728 .613 .522

18 cells (90.0%) have expected count less than 5. The minimum expected count is .30.

Result
As the P value is greater than 0.5 we do not have enough statistical evidence to reject the null hypothesis. Hence we can safely say that at 95% confidence level, there is no association between the age group and the most brought brand.

Cramers V coefficient Test

Purpose
The purpose of this test is to analyse the strength of association between the two nominal variables the Gender and the most brought brand. This test is effective in measuring the strength of association irrespective of the table size and therefore we have conducted this test on the following categories.

Requirements
a. Data should be measured on nominal variables with each variable having any number of categories Null Hypothesis, H0= There is no association between the most brought brand and the gender.

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Alternate Hypothesis, H1= There is no association between the two variables.

Snapshot from SPSS

Case Processing Summary Cases Valid N Sex * Most_Bought 40 Percent 100.0% N 0 Missing Percent 0.0% N 40 Total Percent 100.0%

Sex * Most_Bought Crosstabulation Count Most_Bought Coke Male Sex Female Total 4 14 1 4 1 6 1 10 2 6 9 40 10 Pepsi 3 Sprite 5 Thums Up 9 Fanta 4 31 Total

Symmetric Measures Value Phi Nominal by Nominal Cramer's V N of Valid Cases .208 40 .786 .208 Approx. Sig. .786

Result
As the P value is greater than 0.5 we do not have enough statistical evidence to reject the null hypothesis. Hence we can safely say that at 95% confidence level, there is no association between the gender and the most brought brand.

Cochran Test
Purpose
This test is used to measure responses to dichotomous which have responses such as yes or no.

Requirements
a. Data to be measured on dichotomous scale b. Number of treatment should be greater than two Page

c. All the respondents should have responded to all the treatments.

We have applied this test to observe whether or not increase in the price of cold drink has any effect on its purchase Null Hypothesis, H0= the change in price does not have any effect on the buying behaviour. Alternate Hypothesis, H1= There is relation between the prices and the buying behaviour

Snapshot from SPSS

Cochran Test Frequencies Value 0 Cold_Drink_12 Cold_Drink_14 Cold_Drink_16 8 16 30 1 32 24 10 N Cochran's Q df Asymp. Sig. Test Statistics 40 33.818a 2 .000

Result
It is clearly visible that we can safely reject the null hypothesis to accept the alternate hypothesis and therefore we can say that buying behaviour change with the change in prices.

Friedman Two-way ANOVA

Purpose
This test is done to find out consistency of ranking the cold drinks by the students. We cannot use any other rank correlation test here as we have more than 2 students and more than 2 cold drinks. We cannot use Kruskal-Wallis One-way ANOVA because the rankings are done by the same individuals across the attributes. Hence the only option is to use Friedman Two-way ANOVA Null Hypothesis, H0= There is no significant difference in the ranking of cold drinks. Alternate Hypothesis, H1= There is a significant difference between the ranking of cold drinks.

Snapshot from SPSS

Ranks Mean Rank Coke Pepsi Thumsup Fanta 2.45 3.10

3.88

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2.65

Sprite Test Statistics N Chi-Square df Asymp. Sig.

a

2.93

40 19.300 4 .001

Result
Since the asymptotic significance is 0.001 and it is less than =0.05, we reject the null hypothesis. Hence we conclude that there is a significant difference between the ranks of cold drinks, Coke being ranked 1

Dunns Multiple Comparison test for K related Samples

Purpose
Whenever Friedmans test reveals a significant difference in the mean ranks, then it becomes mandatory to check which sample group is different from which other sample group. This is done with the help of Dunns Multiple Comparison test. Null Hypothesis, H0= The rank preference of ith and jth cold drink is same. Alternate Hypothesis, H1= There is a difference in the rank of ith and jth cold drink

Snapshot of testing
The sum of ranks R1 = 98, R2 = 124, R3 = 106, R4 = 155, R5 = 117 The absolute difference between these sum of ranks across all categories is as follows: D12 D13 D14 D15 D23 D24 D25 D34 D35 D45 26 8 57 19 18 31 7 49 11 38

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The largest absolute difference is 57.

Standard Deviation for the data set = Square root of (n*k*(k+1)/No. of pairs), where n = 40 and k =5. Hence SD = 10.95445 The critical Z value for a single tailed probability = /k(k-1) = 2.32 taking alpha as 20% Now Tij=Dij/SD which is calculated for all values. T12 2.373464 T13 0.730297 T14 5.203364 T15 1.734455 T23 1.643168 T24 2.8299 T25 0.63901 T34 4.473068 T35 1.004158 T45 3.46891 When Tij >= Critical Z, we reject the null hypothesis and hence establish that there is no significant difference between ith and jth cold drink.

Result
1. Coke is the most preferred cold drink while Fanta is the least. 2. The absence of a significant difference between Thumsup and Sprite signifies that they are tied for the second most preferred cold drink. Coke Thumsup Sprite Pepsi Fanta

Point Bi-serial Correlation

Purpose
The test is used to analyse the correlation between two variables which are on different categories.

Requirements
a. There should be two variables of measurement. One variable on interval scale and other on a dichotomous scale b. It is mandatory that nominal scale independent variable should have two categories. We have applied this test to observe whether or not increase in the price of cold drink has any effect on its purchase Null Hypothesis, H0= There is no significant correlation between the gender of the respondent and the number of cold drinks bought.

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Snapshot from SPSS

Correlations Frequency of Purchase Frequency of Purchase Pearson Correlation Sex Sig. (1-tailed) Frequency of Purchase Sex Frequency of Purchase N Sex 40 40 -.058 . .360 40 1.000 .360 . 40 1.000 -.058 Sex

Variables Entered/Removed Model Variables Entered 1 Sex

b

Variables Removed

Method

. Enter

a. Dependent Variable: Frequency of Purchase b. All requested variables entered.

Model Summary Model R R Square Adjusted R Square 1 .058

a

Std. Error of the Estimate 5.19713

.003

-.023

a. Predictors: (Constant), Sex

ANOVAa Model Regression 1 Residual Total Sum of Squares 3.513 1026.387 1029.900 df 1 38 39 Mean Square 3.513 27.010 F .130 Sig. .720b

a. Dependent Variable: Frequency of Purchase b. Predictors: (Constant), Sex

Result
It is clearly visible that the regression coefficient is equal to -.058 which is very low, indicating a weak correlation between the two variables. Also the p value is .720 which is greater than .05 indicating that there is not enough evidence to reject the null hypothesis. So there is no correlation between Page the two variables.

Multiple Regression Analysis

Purpose
We are trying to find the correlation between one independent and two independent variables. Hence, we are using multiple regressions. As we have two independent ordinal variables, we have recoded them into dummy variables keeping the lowest value as reference. Null Hypothesis H0: There is no significant correlation between age of the respondent/climate of the region where he stays and the number of cold-drinks bought per week.
Multiple Regression Analysis

Coefficients Model Unstandardized Coefficients Standardized Coefficients B (Constant) 1 Sex -.710 1.968 -.058 -.361 .720 a. Dependent Variable: Frequency of Purchase 5.419 Std. Error 2.547 Beta 2.128 .040 t Sig.

Model Summary Model R R Square Adjusted R Square 1 .201

a

Std. Error of the Estimate 5.39147

.040

-.101

a. Predictors: (Constant), cool, age greater than 26, age between 18 and 20, age between 21 and 23, moderate

ANOVA Model Regression 1 Residual Total Sum of Squares 41.589 988.311 1029.900 df

Mean Square 5 34 39 8.318 29.068

F .286

Sig. .917b

a. Dependent Variable: Frequency of Purchase b. Predictors: (Constant), cool, age greater than 26, age between 18 and 20, age between 21 and 23, moderate

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Because, significance level is way high than .05, we can say there is not enough statistical evidence to reject the null hypothesis. So, we can infer that there is no correlation between age of the respondent/climate of the region where he stays and the number of cold-drinks bought per week.

Kolgomorov Smirnov One Sample Test

Purpose
We have used this test to evaluate to see if the customers are indiscriminate in their perception about the fizz impact of a cold-drink Null Hypothesis: There is no difference in the proportion of the respondents perception about the fizz impact.

Snapshot from SPSS

Kolmogrov Smirnov Test Case Processing Summary Cases Valid N Fizz_Impact 40 Percent 97.6% N 1 Missing Percent 2.4% N 41 Total Percent 100.0%

Tests of Normality Kolmogorov-Smirnova Statistic Fizz_Impact .269 df 40 Sig. .000 Statistic .868 Shapiro-Wilk df 40 Sig. .000

a. Lilliefors Significance Correction

Results
As the p-value is less than 0.05, we have enough statistical evidence to reject the null hypothesis. This means that there is a difference in the proportion of fizz impact.

Kruskal Wallis One way ANOVA

To find out whether the average number of cold drinks bought is the same across regions of different climate we perform the Kruskal Wallis One way ANOVA.

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H0: The average number of cold drinks is the same across regions of different climate Ha: The average number of cold drinks is not same across regions of different climate
Ranks Climate Warm Moderate Frequency of Purchase Cool Total 6 40 20.33 N 19 15 Mean Rank 19.92 21.30

Test Statisticsa,b Frequency of Purchase Chi-Square df Asymp. Sig. a. Kruskal Wallis Test b. Grouping Variable: Climate .123 2 .940

Since the asymptotic significance is less than alpha, the null hypothesis cannot be rejected. Hence the average number of cold drinks bought is not dependent on climate. If this result had come out significant, then to find the reason for significance we would perform Wilcoxon Multiple Comparison Test.

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