After more than five years of discussion, your senior management has agreed to let you begin some customer research to see if Tide’s traditional broad-brush IMC advertising/messaging still appeals to customers or if the brand would be better off moving to a more ethnic-focused advertising/messaging approach. If you find that there is no correlation between ethnicity and brand preference, you will recommend that Tide continue with its current IMC program. If there is a correlation, you will recommend to your management that further, more-involved (and, yes, more expensive) customer tests be undertaken to try to determine the upside and risks involved in changing over to a more ethnic-focused approach.

The table below provides a summary of data obtained from an appropriately drawn probability sample of 800 customers. Using an alpha of .025, perform the five-step hypothesis test and state your findings.

 

 

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Tide Brand X Column Ethnicity Total Purchase Preference Purchase Preference African-American 70 85 155 Asian-Pacific 106 90 196 Caucasian 80 80 160 Hispanic 70 80 150 All Others 74 65 139 (Other, Mixed, Declined to State) Row Total 400 400 800 Tide Brand X Column Ethnicity Total Purchase Preference Purchase Preference African-American 70 85 155 Asian-Pacific 106 90 196 Caucasian 80 80 160 Hispanic 70 80 150 All Others 74 65 139 (Other, Mixed, Declined to State) Row Total 400 400 800

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