Assignment:
Based on the lecture and discussion on hypothesis testing, answer the following questions regarding the Chicago Fashion Study Case in the course packet (Chicago_Fashion_data_set.sav). You should feel free to apply any appropriate tool we have learned so far for hypotheses testing (such as t-tests, ANOVA, Chi-square analysis, correlation) to this assignment. This data file and Appendix 1 (which describes the variables) are posted on the Blackboard course site.
Questions (See Appendix 1 for a complete description of the variables.)
1. Do general customers in the sample prefer more fashionable lifestyle (Life_fsh) than quality of the merchants (One_qual) they buy?
a. Write up your hypothesis for this question,
b. Select a tool to test the hypothesis (you may want to use the Select Case command to select cases for only one store if you want to compare to the population-eg to select JCPenney, use Data?Select Cases?If JCPenney > 2. We did not learn Select Case command in class before, so if you use the whole sample, it will be okay.) and,
c. Interpret the findings/output in words, particularly with respect to the null hypothesis and a managerial conclusion.
2. Is the average shopping frequency to Nordstrom about once or twice per year (µ = 2)?
a. Write up your hypothesis for this question,
b. Select a tool to test the hypothesis, and
c. Interpret the findings/output in words, particularly with respect to the null hypothesis and a managerial conclusion.
3. Segment the market for JCPenney and Nordstrom stores by describing either store's target market respectively (or significant demographic, psychographic, or behavioral features of their frequent shoppers). Try to find as many significant features as possible.
a. Develop null and alternative hypotheses for each of your prediction (such as Null Hypothesis: "Nordstrom customers' shopping frequency is independent of their hattitude toward quality"; Alternative Hypothesis: "Nordstrom customers' shopping frequency is dependent of their attitude toward quality").
b. Select appropriate tools (statistical tests) to test the hypotheses above,
c. Interpret the findings/output in words, particularly with respect to the null hypothesis and a managerial conclusion. (If you have a group of similar tests, you may summarize the overall findings and attach only one complete test result to the write-up).
d. Based on the findings, do you think the two stores are head-on competitors? Explain why.
e. Regarding the managerial implication of these analyses, create a value proposition statement or a tag line for the two stores-JCPenney and Nordstrom (based on your findings regarding customers' demographic, psychographic, or behavioral features).
Deliverables:
• A write-up in Word file that gives answers to the questions above and detailed interpretation of your test findings. Either export to Word doc and add your writeup or copy/paste related results to your Word writeup.