Factorial designs are commonly employed in marketing re-SUPMKT search to evaluate the effectiveness of sales strategies. At one supermarket, two of the factors were price level (regular, reduced price, cost to supermarket) and Display level (normal display space, normal display space plus end-of-aisle display, twice the normal display space). A 3 x 3 complete factorial design was employed, where each treatment was applied three times to a particular product at a particular super market. The dependent variable of interest was unit sales for the week. (To minimize treatment carryover effects, each treatment was preceded and followed by a week in which the product was priced at its regular price and was displayed in its normal manner.) The next table reports the data collected.
a. How many treatments are considered in this study?
b. Do the data indicate that the mean sales differ among the treatments? Test using a = .10.
c. Is the test of interaction between the factors price and Display warranted as a result of the test in part b? If so, conduct the test using α = .10.
d. Are the tests of the main effects for Price and Display warranted as a result of the previous tests? If so, conduct them using α = .10.
e. Which pairs of treatment means should be compared as a result of the tests in parts b-d?

Transcribed Image Text:

Price Cost to Regular Reduced Supermarket 989 1211 1,025 1,215 1,030 1,182 1,191 1,860 1,577 1,559 1598 2.492 Display Normal Plus 1233 1 2527 2.511 1801 1,833 1,852 Normal 1.221 1,926 1.226 1,516 Twice Normal .202 1,501 1,180 498