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Problem 06

An experiment was conducted over 8 days in a supermarket to study the effect of shelf height (knee level, waist level, eye level) on sales of a brand of canned dog food called Arf. The daily sales in hundreds of dollars were recorded for each shelf height. An ANOVA analysis found a significant difference in average daily sales based on shelf height with a p-value of 0.0001099 which is less than the significance level of 0.01. The null hypothesis that there is no difference in average sales across shelf heights is rejected, while the alternative hypothesis that there is a difference in at least one average sale is accepted. Sales were highest on average when the product was placed at waist level.
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0% found this document useful (0 votes)
48 views

Problem 06

An experiment was conducted over 8 days in a supermarket to study the effect of shelf height (knee level, waist level, eye level) on sales of a brand of canned dog food called Arf. The daily sales in hundreds of dollars were recorded for each shelf height. An ANOVA analysis found a significant difference in average daily sales based on shelf height with a p-value of 0.0001099 which is less than the significance level of 0.01. The null hypothesis that there is no difference in average sales across shelf heights is rejected, while the alternative hypothesis that there is a difference in at least one average sale is accepted. Sales were highest on average when the product was placed at waist level.
Copyright
© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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Problem N° 06

In the article "Shelf-Space Strategy in Retailing," which was published in


Proceedings-.Southern Marketing Association, the effect of shelf height in
supermarkets on sales of canned dog food was investigated. Over a period of
8 days , an experiment was conducted in a small super market on the sales of
a brand of dog food known as Arf and three levels of shelf height were used: at
the knees, at the waist and at the eyes. Each day the height of the shelf on
which the food was placed was randomly changed three times.

The remaining sessions of the gondola containing the dad brand were filled with
a mix of food brands, which were both familiar and unfamiliar to consumers in
that specific geographic area. Daily sales, expressed in hundreds of dollars of
Arf food, are prepared for the three shelf heights. Based on data. Is there a
significant difference in the average daily sales of that food, based on shelf
height? Use a significance level of 0.01.

Shelf height

Knee Level Waist Level Eye level


77 88 85
82 94 85
86 93 87

78 90 81

81 91 80
86 94 79
77 90 87
81 87 93

Calculating
Hypothesis

H0: µ1=µ2= µ3 no significant difference in the average sales


H1: µ1 ≠ µ2 ≠ µ3 there is a difference in at least an average of the sales.

648 727 677


Calculated Yi

Calculating No. of repetitions n=r

8 8 8
n=r= 24

Calculated average for each shelf height = Yi

81 90.875 84.625

Calculated average Total = Ytotal 85. 5

APPLYING ANOVA FOR THE DAILY SALES/SHELF HEIGHT FACTORS


One-factor analysis of variance

SUMMARY
Groups Account Sum Average Variance

Knee Level 8 648 81 13.1428571


Waist Level 8 727 90.875 6.98214286
Eye level 8 677 84.625 21.125
Average 85.5

ANALYSIS OF VARIANCE
FV SC GL CM Fcal Probability F.tab.
Height levels 399.25 2 199.625 14.518 0.0001099 5.78041569
Error 288.75 21 13.75

Total 688 23

CV 0.043
CV% CV%
CV% CV%
CV% CV%
CV% CV%
CV% CV%
CV% CV% 4.34

Ftab 5.780
Fcal 14.518
Analysis of the problem: Since Fcalis greater than Ftab, H0is rejected
and H1is approved, i.e., there is a significant difference in the average daily
sales of Arf food. Depending on the height at which the product is located. It is
also noticeable that the height of the shelf at the waist is the one with the
highest sales gain over the other heights.

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