Question
A marketing firm producing detergents is interested in studying the consumer behavior in the context of purchase decision of detergents in a specific market. It
A marketing firm producing detergents is interested in studying the consumer behavior in the context of purchase decision of detergents in a specific market. It would like to know in particular whether the income level of the consumers influence their choice of the brand. Currently there are two brands in the market. Brand 1 is the premium brand while Brand 2 is the economy brand. Income level was classified as Lower, Middle, Upper Middle and High and random sampling procedure was adopted covering the entire market. A sample of 300 consumers participated in this study. The following data emerged from the study. Analyze the data using chi-square test and draw your conclusions.
It is given that the tabled value of the Chi-square distribution with right-tail area equal to 5% for 1, 2 and 3 degrees of freedom are 3.84, 5.99 and 7.81 respectively.
Income level | Brand 1 | Brand 2 |
Lower | 25 | 65 |
Middle | 30 | 30 |
Upper Middle | 50 | 22 |
High | 60 | 18 |
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