To ensure a successful test marketing of its OmniPower energy bars, the OmniFoods marketing department has contracted

Question:

To ensure a successful test marketing of its OmniPower energy bars, the OmniFoods marketing department has contracted with In-Store Placements Group (ISPG), a merchandising consulting firm. ISPG will work with the grocery store chain that is conducting the test-market study. Using the same 34-store sample used in the test-market study, ISPG claims that the choice of shelf location and the presence of in-store OmniPower coupon dispensers both increase sales of the energy bars.

Open Omni_ISPGMemo.pdf to review the ISPG claims and supporting data. Then answer the following questions:

1. Are the supporting data consistent with ISPG's claims? Perform an appropriate statistical analysis to confirm (or discredit) the stated relationship between sales and the two independent variables of product shelf location and the presence of in-store OmniPower coupon dispensers.

2. If you were advising OmniFoods, would you recommend using a specific shelf location and in-store coupon dispensers to sell OmniPower bars?

3. What additional data would you advise collecting in order to determine the effectiveness of the sales promotion techniques used by ISPG?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...