Module 7 Chapter-F2F

.docx

School

University of Colorado, Boulder *

*We aren’t endorsed by this school

Course

1112

Subject

Statistics

Date

Jan 9, 2024

Type

docx

Pages

Uploaded by MajorRose12059

Module 7 - Market Research on Caffeinated Products Background A start-up company in Boulder has an idea for a new energy product: caffeinated chocolate. Many details about the exact product concept are yet to be decided, however, the company wanted to get some consumer input before it moved ahead with developing the new product. To do that, they created concept statements for seven related product ideas and administered a survey regarding those concepts. You will analyze the data collected from the surveys. The seven concepts are 1. Caffeinated chocolate bar 2. Caffeinated cookies 3. Caffeinated chocolates 4. Caffeinated potato chips 5. Caffeinated water 6. Caffeinated cereal/granola 7. Caffeinated hamburger meat  The concepts numbered 1 and 3 (chocolate bar and chocolates) are closest to what the company has in mind for the new product. Concept number 2 is a similar idea, while concepts 4-6 are quite different categories from their focal idea. Concept 7 (hamburger meat) served as a benchmark: it was designed as an intentionally unattractive idea, and it was used to see if people were really paying attention to the survey or just answering randomly.  The survey first asked some background questions (gender, age, employment status, and usage of energy products), then asked four questions for each of the seven concepts. The four questions for each concept were about 1) purchase intent, 2) uniqueness of the product idea, 3) projected usage frequency, and 4) substitution behavior. The content of the module focuses on the analysis of the responses to the intent, uniqueness, and frequency questions.  The Excel workbook for this module consists of 3 tabs. 1. The “Data” tab contains all the raw data gathered from the 150 survey respondents. 2. The “concepts” tab contains the exact statements of the concepts. 3. The “response codes” tab contains the meaning of the response values for the *gender, age, employment status, intent, uniqueness, and frequency questions. 1 *While we acknowledge that gender isn’t binary, the data you will be looking at reflects the original survey questions and response options at the time the data was collected which included questions about gender.

Part 0: Mean and Weighted Mean Given a large set of data, it can be desirable to summarize the general tendencies of the data. One of the most common summarizing computations is that of the mean of the data. In some cases, you may want to allocate more/less weight to certain data and compute a weighted mean. To begin this Module, view the screencast Mean and Weighted Mean . Part 1: Purchase Intent Each respondent was asked a purchase intent question for each concept: “Based on the description, how likely would you be to purchase this product?” This is a standard question in market research for consumer products. In the data file, the responses to the purchase intent questions are in columns labeled INTENT(1) through INTENT(7), corresponding to Concept 1 through Concept 7 above. In those columns,  1 means the respondent answered, “Definitely would not,”  2 means “Probably would not,”  3 means “Might or might not,”  4 means “Probably would,” and  5 means “Definitely would." Note: 0 indicates that the respondent did not answer the question. 1) Average Purchase Intent a. For each concept, find the average purchase intent response. Also, find the number of people who answered the purchase intent question for each concept. # Concept Name Average Purchase Intent Number of Responses 1 Caffeinated chocolate bar 2.4857 140 2 Caffeinated cookies 1.8733 2 *While we acknowledge that gender isn’t binary, the data you will be looking at reflects the original survey questions and response options at the time the data was collected which included questions about gender. Screencast

3 Caffeinated chocolates 140 4 Caffeinated potato chips 5 Caffeinated water 2.0432 139 6 Caffeinated cereal/granola 1.7214 7 Caffeinated hamburger meat 142 b. Which concept has the highest average score for purchase intent? caffeinated chocolates c. Which concept has the lowest average score for purchase intent? hamburger meat 2) Distribution of Responses For each concept, what percentage of the responses are 1s, 2s, etc.? Give your answers as percentages to two decimal places. Distribution of Responses for Purchase Intent # Concept %1s %2s %3s %4s %5s 1 Caffeinated chocolate bar 26.43% 23.57% 29.29% 4 Caffeinated Potato Chips 17.73% 6.38% 3) Graphs of Distribution of Responses Below is a bar graph showing the distribution of responses for Caffeinated chocolates (Concept 3). 3 *While we acknowledge that gender isn’t binary, the data you will be looking at reflects the original survey questions and response options at the time the data was collected which included questions about gender.

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% Definitely would not purchase Probably would not purchase Might or might not purchase Probably would purchase Definitely would purchase Relative frequency of Purchase Intent reponses for the Caffeinated chocolates concept, n = 140 Create a similar graph in Excel showing the distribution for Caffeinated potato chips (Concept 4). 4) Top-Two Boxes Some companies look at the “top-two boxes” score for concepts. The top-two boxes score is the percentage of respondents who answered, “Probably would” plus the percentage of respondents who answered, “Definitely would.” For example, if 6% of respondents answered, “Definitely would” (a response of 5 in the data) for one of the concepts and 20% of respondents answered, “Probably would” (a response of 4 in the data) for that concept, then the top-two boxes score for that concept is 26%. A. What is the top-two boxes score for the Caffeinated cookies (Concept 2)? 6.34% B. Which of the seven concepts has the highest top-two boxes score? 4 *While we acknowledge that gender isn’t binary, the data you will be looking at reflects the original survey questions and response options at the time the data was collected which included questions about gender.

chocolates Purchase intent responses can be coded as probabilities. One way of translating the response phrases to probabilities is as follows:  Definitely would not = 0% chance,  Probably would not = 25% chance,  Might or might not = 50% chance,  Probably would = 75% chance, and  Definitely would = 100% chance. 5) Average Purchase Probabilities a. Using the probabilities above, what is the average probability of purchase for each of the seven concepts? Use all the responses, not just the top-two boxes. Average Purchase Probabilities, Using 0% , 25% , 50% , 75% , 100% # Concept Average Purchase Probability 1 Caffeinated chocolate bar 37.14% 2 Caffeinated cookies 21.83% 3 Caffeinated chocolates 4 Caffeinated potato chips 5 Caffeinated water 6 Caffeinated cereal/granola 18.04% 7 Caffeinated hamburger meat b. Which concept has the highest average probability of purchase? c. Which concept has the lowest average probability of purchase? Concept 6 d. If Concept A has a higher Average Purchase Intent (using the 1-5 scale) than Concept B, will Concept A necessarily have a higher Average Purchase Probability (using the 0%, 25%, 50%, 75%, 100% scale) than Concept B? (Note that you should not answer this question considering only the data presented from this survey, but in general for any survey results.) 5 *While we acknowledge that gender isn’t binary, the data you will be looking at reflects the original survey questions and response options at the time the data was collected which included questions about gender.

In this scenario, yes. People often overstate their intention to purchase. Instead of 0%, 25%, 50%, 75%, and 100%, a more realistic translation from response phrases to probabilities is as follows:  Definitely would not = 0% chance,  Probably would not = 2% chance,  Might or might not = 55% chance,  Probably would = 60% chance, and  Definitely would = 65% chance. 6) Using these values, what is the average probability of purchase for each of the seven concepts? Average Purchase Probabilities, Using 0% , 2% , 55% , 60% , 65% # Concept Average Purchase Probability 1 Caffeinated chocolate bar 29.22% 2 Caffeinated cookies 13.11% 3 Caffeinated chocolates 4 Caffeinated potato chips 5 Caffeinated water 6 Caffeinated cereal/granola 7 Caffeinated hamburger meat 2.62% a. Which concept has the highest average probability of purchase? Concept 1 b. Which concept has the lowest average probability of purchase? concept 7 6 *While we acknowledge that gender isn’t binary, the data you will be looking at reflects the original survey questions and response options at the time the data was collected which included questions about gender.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Recommended textbooks for you

College Algebra

Algebra

ISBN:9781337282291

Author:Ron Larson

Publisher:Cengage Learning

Glencoe Algebra 1, Student Edition, 9780079039897...

Algebra

ISBN:9780079039897

Author:Carter

Publisher:McGraw Hill

Holt Mcdougal Larson Pre-algebra: Student Edition...

Algebra

ISBN:9780547587776

Author:HOLT MCDOUGAL

Publisher:HOLT MCDOUGAL

Big Ideas Math A Bridge To Success Algebra 1: Stu...

Algebra

ISBN:9781680331141

Author:HOUGHTON MIFFLIN HARCOURT

Publisher:Houghton Mifflin Harcourt

Elementary Geometry for College Students

Geometry

ISBN:9781285195698

Author:Daniel C. Alexander, Geralyn M. Koeberlein

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

College Algebra
Algebra
ISBN:9781337282291
Author:Ron Larson
Publisher:Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
Elementary Geometry for College Students
Geometry
ISBN:9781285195698
Author:Daniel C. Alexander, Geralyn M. Koeberlein
Publisher:Cengage Learning