Coca-Cola Null and Alternative Hypotheses Essay

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“Hypothesis testing is one of the fundamental concepts in both scientific research and business decision-making. It involves establishing a hypothesis (or guess!) about the outcome of an event or experiment and then gathering evidence (data) to make a decision on whether the hypothesis should be accepted or rejected” (Colorado Technical University Online, 2010a). Null Hypothesis – H0 “The null hypothesis is the statement being tested. Often, the null hypothesis is a statement of ‘no difference’ or ‘no effect.’ The null hypothesis is not rejected unless there is convincing sample evidence that it is false” (Bowerman, O’Connell, & Orris, 2012). Say for example that a two liter of Coca-Cola is $1.89 at your local grocery store and…show more content…
Although they have close competitors their brand recognition remains solid, this is mainly due to their strategic alignment with Hollywood and the entertainment industries which draw crowds of captive customers; Coke is sold in “90% of the nation’s theaters” (Graser, 2013). Throw in TV branding with a well-established partnership, in 2002, with Fox's American Idol; Coke’s name recognition has worldwide effects. In the show Coke cups are prominently placed in front of the judges while fan content has morphed into Coke giving fans an opportunity to collaborate on an original song (Graser, 2013). Competitors like Pepsi have chosen a more traditional route by promoting Pepsi and their other products at food establishments such as restaurants and fast-food chains to increase market share; Coca-Cola takes the opposite approach by seeking out and brokering entertainment deals. “In 2012, Coke's profits rose to $10.8 billion, while PepsiCo's declined slightly to $6.5 billion, although the beverage business represents just 37% of PepsiCo's bottom line” (Graser, 2013). Coke assesses its success with monthly measurement metrics of how people feel about their brands and ties back the results to retail sales to determine each brand’s strategy. “Not all entertainment speaks to the audience Coke is looking to reach for each brand: Diet Coke
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