Hob Bits

Data Analysis Assignment Hobbits’ Choice Restaurant Intro to Marketing Research Section Eleven Joel Rakes

1

1. Perform the appropriate descriptive analysis for each question on the question and interpret it. Descriptive Statistics N How many total dollars do you spend per month in restaurants (for your meals only)? What would you expect an average evening meal entree item alone to be priced? Year Born Including children under 18 living with you, what is your family size? Recoded income to $1,000s using midpoints of questionnaire ranges age Valid N (listwise)

Minimum

Maximum

Mean

Std. Deviation

400

$5.00

$450.00

$150.052 5

$92.70629

340

$6.00

$60.00

$18.8353

$9.82784

400

1928

1975

1957.46

9.516

400

1

7

2.67

1.379

400

7.50

175.00

76.4688

53.13583

400 340

28.00

75.00

45.5375

9.51577

For “total dollars spent in restaurants per month”, the mean dollar amount is $150.05. The responses for this question raged from $5 to $450. This mean dollar amount should give Dean a better idea on what an average consumer would spend a month on dining out. For “expected price of an average evening meal entrée”, the mean is $18.84 and the answers varied from a minimum of $6 to a maximum of $60. The mean for “year born” is 1957. The responses ranged from the year of 1928 to 1975. This shows Dean that his average client’s age is on the older side. The mean for “family size” is 2.67. Responses on this question ranged from family sizes of 1 to family sizes of 7. The recoded income of $1,000’s using the midpoints’ mean was $76.4688 or $76,468.80. This gives Dean a better idea of the income of consumers. Lastly, the mean age of respondents was 45.53. Once again showing the consumer’s older age.

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Do you eat at this type of restaurant at least once every two weeks? 400

Frequency

300

200

100

0 0.7

0.8

0.9

1

1.1

1.2

1.3

Mean = 1 Std. Dev. = 0 N = 400

Do you eat at this type of restaurant at least once every two weeks?

The above histogram shows that every single respondent replied with a “yes” to the question of “do you eat at this type of restaurant at least once every two weeks?” Therefore the mean is 1. How likely would it be for you to patronize this restaurant (new upscale restaurant)? 200

Frequency

150

100

50

0 0

1

2

3

4

5

6

Mean = 3 Std. Dev. = 1.237 N = 400

How likely would it be for you to patronize this restaurant (new upscale restaurant)?

This histogram shows that both the mean and the mode response is “3” which means “neither likely nor unlikely” to patronize a new upscale restaurant (a general level of indifference.)

3

Would you describe yourself as one who listens to the radio? 400

Frequency

300

200

100

0 0.5

1

1.5

2

2.5

Mean = 1.04 Std. Dev. = 0.19 N = 400

Would you describe yourself as one who listens to the radio?

According to the above frequency distribution, the overwhelming majority of respondents had a response of “yes” that they describe themselves as one who listens to the radio. To which type of radio programming do you most often listen?

Frequency

150

100

50

0 0

1

2

3

4

5

Mean = 2.67 Std. Dev. = 0.997 N = 385

To which type of radio programming do you most often listen?

The most popular response for type of radio programming listened to is “Rock” music, while the other options were very close with each other.

4

Would you describe yourself as a viewer of TV local news? 400

Frequency

300

200

100

0 0.5

1

1.5

2

2.5

Mean = 1.11 Std. Dev. = 0.313 N = 400

Would you describe yourself as a viewer of TV local news?

The vast majority of respondents responded with a response of “1” representing “yes” that they watch TV local news.

Which newscast do you watch most frequently? 200

Frequency

150

100

50

0 0

1

2

3

4

5

Mean = 3.36 Std. Dev. = 0.882 N = 356

Which newscast do you watch most frequently?

In response to this question, the most common response was “4” meaning “10 pm News”. The next most common was “3” meaning the 6 pm news.

5

Do you read the newspaper? 400

Frequency

300

200

100

Mean = 1.06 Std. Dev. = 0.228 N = 400

0 0.5

1

1.5

2

2.5

Do you read the newspaper?

For the question “do you read the newspaper?”, the most frequent response is “1” or “yes”. Most consumers appear to read the newspaper. Which section of the local newspaper would you say you read most frequently? 120

Frequency

100

80

60

40

20

0 0

1

2

3

4

5

6

Mean = 3.16 Std. Dev. = 1.329 N = 379

Which section of the local newspaper would you say you read most frequently?

The most common response to “which section of the newspaper is read most often” was listed as 3, or the “Local” section.

6

Do you subscribe to City Magazine? 250

Frequency

200

150

100

50 Mean = 1.55 Std. Dev. = 0.498 N = 400

0 0.5

1

1.5

2

2.5

Do you subscribe to City Magazine?

In response to the question “Do you subscribe to City Magazine?” consumers were split near evenly between yes and no. However there were slightly more responses of “no.”

Prefer Waterfront View 150

Frequency

120

90

60

30 Mean = 3.42 Std. Dev. = 1.333 N = 400

0 0

1

2

3

4

5

6

Prefer Waterfront View

When it came to preferring a waterfront view or not, the most common response was 4 or “somewhat prefer.”

7

Prefer Drive Less than 30 Minutes 150

Frequency

120

90

60

30 Mean = 2.72 Std. Dev. = 1.311 N = 400

0 0

1

2

3

4

5

6

Prefer Drive Less than 30 Minutes

The question of “Prefer drive less than 30 minutes” drew a most frequent response of 2 meaning “somewhat not prefer”. Prefer Formal Waitstaff Wearing Tuxedos 140

120

Frequency

100

80

60

40

20 Mean = 2.46 Std. Dev. = 1.516 N = 400

0 0

1

2

3

4

5

6

Prefer Formal Waitstaff Wearing Tuxedos

With regards to preferring formal wait staff wearing tuxedos, the majority of respondents answered with 1 or 2 meaning they felt that they’d “very strongly not prefer” or “somewhat not prefer” a formal wait staff with tuxedos.

8

Prefer Unusual Desserts

Frequency

150

100

50

Mean = 2.41 Std. Dev. = 1.514 N = 400

0 0

1

2

3

4

5

6

Prefer Unusual Desserts

The bulk of the respondents replied with responses of 1 or 2, meaning they did “very strongly not prefer” or “somewhat not prefer” unusual desserts.”

Prefer Large Variety of Entrees 150

Frequency

120

90

60

30 Mean = 2.48 Std. Dev. = 1.466 N = 400

0 0

1

2

3

4

5

6

Prefer Large Variety of Entrees

The responses for this question show a majority of “very strongly not prefer” about preferring a large variety of entrées.

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Prefer Unusual Entrees 200

Frequency

150

100

50

Mean = 2.4 Std. Dev. = 1.55 N = 400

0 0

1

2

3

4

5

6

Prefer Unusual Entrees

The group stated a majority of “very strongly not prefer” in response to preferring “unusual entrees” or not.

Prefer Simple Decor 150

Frequency

120

90

60

30 Mean = 3.58 Std. Dev. = 1.492 N = 400

0 0

1

2

3

4

5

6

Prefer Simple Decor

Respondents showed a majority of “very strongly prefer” followed closely by “somewhere prefer” in response to whether or not they preferred simple décor.

10

Prefer Elegant Decor 200

Frequency

150

100

50

Mean = 2.33 Std. Dev. = 1.51 N = 400

0 0

1

2

3

4

5

6

Prefer Elegant Decor

When faced with this question, the group replied with a majority of “very strongly not prefer” in response to preferring or disliking elegant décor.

Prefer String Quartet 140

120

Frequency

100

80

60

40

20 Mean = 2.5 Std. Dev. = 1.42 N = 400

0 0

1

2

3

4

5

6

Prefer String Quartet

Respondents showed that they “very strongly not prefer” string quartet music, closely followed by “somewhat not prefer.”

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Prefer Jazz Combo 140

120

Frequency

100

80

60

40

20 Mean = 3.7 Std. Dev. = 1.221 N = 400

0 0

1

2

3

4

5

6

Prefer Jazz Combo

Respondents replied “very strongly prefer” in regards to preferring a jazz combo, closely followed by “somewhat prefer.”

What is your highest level of education? 250

Frequency

200

150

100

50 Mean = 5.77 Std. Dev. = 1.413 N = 400

0 0

2

4

6

8

10

What is your highest level of education?

With regards to their level of education, the majority of the respondents have completed a bachelor’s degree.

12

What is your marital status? 300

Frequency

250

200

150

100

50 Mean = 1.86 Std. Dev. = 0.547 N = 400

0 0.5

1

1.5

2

2.5

3

3.5

What is your marital status?

The majority of the respondents are married, followed by single and then other.

Please check the letter that includes the Zip Code in which you live (coded by letter). 250

Frequency

200

150

100

50

0 0

1

2

3

4

5

Mean = 2.7 Std. Dev. = 0.715 N = 400

Please check the letter that includes the Zip Code in which you live (coded by letter).

The majority of the respondents replied “C” meaning they live in zip codes 6, 7, 8, & 9.

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Which of the following categories best describes your before tax household income? 140 120

Frequency

100 80 60 40 20 0 0

2

4

6

8

Which of the following categories best describes your before tax household income?

Mean = 4.18 Std. Dev. = 1.749 N = 400

The majority of respondents replied with a response of 4 which represents a value $50,000 to $74,999.

What is your gender? 250

Frequency

200

150

100

50 Mean = 1.49 Std. Dev. = 0.501 N = 400

0 0.5

1

1.5

2

2.5

What is your gender?

In regards to gender, the responses were split almost evenly with 1 and 2 meaning, almost 50% were males and almost 50% were females.

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Probable Patron of Hobbit's Choice? 300

Frequency

250

200

150

100

50 Mean = 1.72 Std. Dev. = 0.447 N = 400

0 0.5

1

1.5

2

2.5

Probable Patron of Hobbit's Choice?

The majority of responses were a 2 or “no” to the question, in other words, that they would not be a probable patron of Hobbit’s Choice.

2. What are the population estimates for each of the following? a. preference for “easy listening” radio programming To which type of radio programming do you most often listen?

Valid

Missing Total

Country&Western Easy Listening Rock Talk/News Total System

Frequency 66 78 159 82 385 15 400

Percent 16.5 19.5 39.8 20.5 96.3 3.8 100.0

Valid Percent 17.1 20.3 41.3 21.3 100.0

Cumulative Percent 17.1 37.4 78.7 100.0

p=.203 n=385 z=1.96 .203 +- 1.96 SquareRootOf(.203)(1-.203)/385

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Based off the above calculations, we are 95% certain that the population proportion falls in the range of 16.28% and 24.32% Since only between 16% and 24% of the population actually listen to the easy listening genre, Dean would be smart to consider playing a different type of music genre.

b. viewing of 10 p.m. local news on tv Which newscast do you watch most frequently?

Valid

Missing Total

7:00 am News Noon News 6:00 pm News 10:00 pm News Total System

Frequency 32 1 129 194 356 44 400

Percent 8.0 .3 32.3 48.5 89.0 11.0 100.0

Valid Percent 9.0 .3 36.2 54.5 100.0

Cumulative Percent 9.0 9.3 45.5 100.0

p=.545 n=356 z=1.96 .545 +-1.96 SquareRootOf(.545)(1-.545)/356 Based off the above calculations, we are 95% certain that the population proportion falls in the range of 49.33% and 59.67% This data shows that a large proportion of the population watches the 10 p.m. news. Therefore, this would be a good timeslot for Dean to advertise during. c. average age of heads of household One-Sample Test

Test Value = 0 95% Confidence Interval of the Difference t age

95.709

df

Sig. (2-tailed) 399

.000

Mean Difference 45.53750

Lower 44.6021

Upper 46.4729

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Based off the one-sample t-test, we are 95% sure that the population estimate falls in the range of the ages 44.6 and 46.47. The mean age is also shown to be 45.54. Due to the confidence interval’s range being so small, there is much certainty that the average age is roughly around 45. This age group should therefore be the focus of marketing efforts. d. average price paid for an evening mean entrée One-Sample Test

Test Value = 0 95% Confidence Interval of the Difference t What would you expect an average evening meal entree item alone to be priced?

35.339

df

Sig. (2-tailed) 339

.000

Mean Difference

Lower

Upper

$18.83529

$17.7869

$19.8837

From the one sample t-test, we see that we are 95% certain that the population estimate falls in the range of $17.78 and $19.88. This data shows that customers are used to paying a higher price for an evening meal entrée in restaurants of similar nature. Dean should use this pricing information to his advantage when deciding on the pricing of his menu.

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3. Because Jeff Dean’s restaurant will be upscale, it will appeal to high-income consumers. Jeff hopes that at least 30 percent of the households have an income level of $100,000 higher. Test this hypothesis. Which of the following categories best describes your before tax household income?

Valid

<$15,000 $15,000 to $24,999 $25,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000+ Total

Frequency 26 34 82 133 16

Percent 6.5 8.5 20.5 33.3 4.0

Valid Percent 6.5 8.5 20.5 33.3 4.0

Cumulative Percent 6.5 15.0 35.5 68.8 72.8

43

10.8

10.8

83.5

66 400

16.5 100.0

16.5 100.0

100.0

p=.108 + .165 = .273 Ho: Pi = .30 H1: Pi < .30 Sp = SquareRootOf(.273 (1-.273)/400 Sp = .022 Z=.273 - .30/.022 Z =-1.22 Based of the above test, we must fail to reject the null hypothesis due to the z score of -1.22 not being greater than 1.65. We lack enough evidence to claim that 30% of the households have an income level of $100,000 or higher. After gaining this information, it would appear that Dean should target a lower level of income bracket.

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4. With respect to those who are “very likely” to patronize The Hobbits’ Choice restaurant, Jeff believes that the will either “very strongly” or “somewhat” prefer each of the following. (a) wait staff with tuxedos, (b) elegant décor, and (c) jazz combo music. Does the survey support or refute Jeff’s hypothesis? Interpret your findings. One-Sample Statistics

N Prefer Formal Waitstaff Wearing Tuxedos Prefer Elegant Decor Prefer Jazz Combo

Mean

Std. Deviation

Std. Error Mean

72

4.68

.470

.055

72 72

4.50 2.60

.504 .944

.059 .111

One-Sample Test

Test Value = 0 95% Confidence Interval of the Difference t Prefer Formal Waitstaff Wearing Tuxedos Prefer Elegant Decor Prefer Jazz Combo

df

Sig. (2-tailed)

Mean Difference

Lower

Upper

84.586

71

.000

4.681

4.57

4.79

75.835 23.337

71 71

.000 .000

4.500 2.597

4.38 2.38

4.62 2.82

The confidence intervals show that: A. The survey backs up Dean’s belief that customers will either “very strongly” or “somewhat” prefer formal wait staff wearing tuxedos. The confidence interval range includes the response of 4 which represents those levels of preference. Based off this information, Dean should dress his wait staff in tuxedos. B. The results of the survey also confirm Dean’s idea that customers will either “very strongly” or “somewhat” prefer elegant decor. The confidence interval range includes the response of 4 which represents those preference levels. Dean should use elegant décor based of this information. C. The survey does not confirm Dean’s belief that customers will either “very strongly” or “somewhat” prefer jazz combo. The confidence interval range does not include the response of 4 which represents those preference levels. This information shows that Dean should consider other options for background music in his new restaurant.

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5. Jeff wonders if The Hobbits’ Choice Restaurant is more appealing to women than it is to men or vice versa. Perform the proper analysis, interpret it, and answer Jeff’s Question.

Ho: men = women H1: men do not equal women The above statistics are not statistically significant due to the number zero being included in the confidence interval. Also because the p value of .538 is greater than .05. Sufficient evidence does not exist to suggest that there is a difference in level of appeal between men and women. Therefore, when planning his marketing strategies, Dean should not focus on either gender because it appears that there is very little difference between men and women. 6. With respect to the location of The Hobbits’ Choice Restaurant, is a waterfront view preferred more than a drive of less than 30 minutes? Paired Samples Statistics

Mean Pair 1

Prefer Waterfront View Prefer Drive Less than 30 Minutes

N

Std. Deviation

Std. Error Mean

3.42

400

1.333

.067

2.73

400

1.311

.066

Paired Samples Test Paired Differences 95% Confidence Interval of the Difference Mean Pair 1

Prefer Waterfront View - Prefer Drive Less than 30 Minutes

.695

Std. Deviation

Std. Error Mean

2.513

.126

Lower .448

Upper .942

t 5.532

df

Sig. (2-tailed) 399

20

.000

Ho: waterfront – drive less than 30 minutes = 0 H1: waterfront – drive less than 30 minutes does not equal 0 The above table shows that the mean for “waterfront” is 3.42, and the mean for “drive less than 30 minutes” is 2.73. The waterfront mean is higher and because the p-value is .000, there is significant evidence to show that a “waterfront view” is the preference over “drive of less than 30 minutes.” Therefore, when Dean is deciding on a location for his restaurant, he should focus his decisions more on a “waterfront view” than being closely located to his patrons because the statistics have shown that they value a waterfront view more favorably.

7. In general, upscale restaurants are appealing to higher-income households, whereas they are less appealing to lower-income households. Is this the case for The Hobbits’ Choice Restaurant? ANOVA How likely would it be for you to patronize this restaurant (new upscale restaurant)?

Between Groups Within Groups Total

Sum of Squares 453.301 157.697 610.998

Df 6 393 399

Mean Square 75.550 .401

F 188.280

Sig. .000

5

Mean of likely

4

3

2

1 <$15,000 $15,000 to $25,000 to $50,000 to $75,000 to $100,000 $150,000+ $24,999 $49,999 $74,999 $99,999 to $149,999

Which of the following categories best describes your before tax household income?

21

22

Ho: mean <$15,000 = mean $15,000-$24,999 = + … + = mean $150,000+ H1: at least one mean is different The data analysis shows that we should reject the null hypothesis (at least one mean is different) because of the p-value that is .000. Based off the significance values, the top three income groups have a higher mean of level of appeal than then bottom four groups. Therefore, Dean should decide that in his situation, his case is similar to the general consensus and because of this; he should market his restaurant to people with income brackets that are higher income.

8. Do older or younger people want unusual desserts and/or unusual entrees?

Ho: beta = 0 H1: beta does not equal 0 Because the significance value for both of the independent variables is .000, we should reject the null hypothesis for both “prefer unusual entrees” and “prefer unusual desserts”. The above graph shows that the coefficient for preferring unusual entrees is .520 (a positive number). The number shows that as age increases by a 1 year span, the probability of “preferring unusual entrees” increases too, by .520 of a scale point for each year period. With “preferring unusual desserts”, the Pearson correlation coefficient is .483. This means as age increases during each year, the scale measure of “unusual desserts” increases .483. Essentially, this shows that older people prefer “more unusual entrees and desserts.” If Dean has plans to target older patrons, when planning the menu for the restaurant he should plan on offering some unusual entrees and desserts on the menu. 23

9. Create a variable that distinguishes the “probable patrons” (likely to patronize=4 or 5) from the “not probable patrons” (likely to patronize=1, 2 or 3). If the probable patrons constitute the target market for Hobbits’ Choice, what is the demographic makeup of this target market? Use cross tabulations to consider the demographics of household income, education level, gender, and zip code. Also consider the media habits of the target market, including magazines, radio, newscasts, and newspaper. Ho: There is no relationship between “Likely Patrons” and “Household Income” H1: There is a relationship between “Likely Patrons” and “Household Income”

1 if probable patron Total

.00 1.00

Which of the following categories best describes your before tax household income? $15,000 to $25,000 to $50,000 to $75,000 to $100,000 to <$15,000 $24,999 $49,999 $74,999 $99,999 $149,999 $150,000+ 26 34 82 129 6 3 10 0 0 0 4 10 40 56 26 34 82 133 16 43 66

Chi-Square Tests

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value 305.177(a ) 335.550 232.485

Asymp. Sig. (2-sided)

df 6

.000

6

.000

1

.000

400

a 1 cells (7.1%) have expected count less than 5. The minimum expected count is 4.40.

The null hypothesis should be rejected. The p-value is .000 which is less than .05, so there is a relationship between “before-tax household income” and “likely patrons.” The probable patrons responded most often with an income of $150,000+, the second most often being the $100,000-149,999 category. This basically means that the probable patrons are upper class people with the highest incomes. Dean would be wise to use this information when deciding on his target market. His target market should include patrons with high income, particularly from the $100,000 and up groups.

24

Total 290 110 400

1 if probable patron

Ho: There is no relationship between “Likely Patrons” and “Education” H1: There is a relationship between “Likely Patrons” and “Education”

.00 1.00

Total

Less than High School 11 0 11

Some High School 14 0 14

What is your highest level of education? High School Some College Associate Bachelor's Graduate (No Degree) Degree Degree 14 14 11 172 0 0 3 66 14 14 14 238

Master's Degree 52 34 86

Chi-Square Tests

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value 38.027(a) 49.998 30.809

7 7

Asymp. Sig. (2-sided) .000 .000

1

.000

df

400

The null hypothesis should be rejected, because the p-value is .000. There is a relationship between the highest level of education and likely patrons. The majority of probable patrons stated that their highest level of education was a bachelor’s degree. This shows that in education demographics, the target market includes mostly higher education levels such as a bachelor’s degree.

Ho: There is no relationship between “Likely Patrons” and “Gender” H1: There is a relationship between “Likely Patrons” and “Gender” Crosstab Count What is your gender? 1 if probable patron Total

.00 1.00

Male 145 59 204

Female 145 51 196

Total 290 110 400

25

Doctorate Degree 2 7 9

Chi-Square Tests

Pearson Chi-Square Continuity Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

1

Asymp. Sig. (2-sided) .516

.289

1

.591

.422

1

.516

Value .422(b)

.421

df

1

Exact Sig. (2-sided)

Exact Sig. (1-sided)

.576

.296

.516

400

There isn’t enough evidence to reject the null hypothesis (the significance value is .516, which is greater than .05.) Therefore, there is no relationship between gender and “likely patrons.” Both men and women should be included in the target market because there is no evidence that either gender is more likely to patronize than the other. Ho: There is no relationship between “Likely Patrons” and “Zip Code” H1: There is a relationship between “Likely Patrons” and “Zip Code” Crosstab Please check the letter that includes the Zip Code in which you live (coded by letter).

1 if probable patron Total

.00 1.00

A (1 & 2) 20 0 20

B (3, 4, & 5) 15 105 120

C (6, 7, 8, & 9) 215 5 220

D (10, 11, & 12) 40 0 40

Total 290 110 400

Chi-Square Tests

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value 309.661(a ) 332.383 127.138

Asymp. Sig. (2-sided)

df 3

.000

3

.000

1

.000

400

a 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.50.

We should reject the null hypothesis because there is sufficient evidence and the significance value is .000. This data suggests that there is a relationship between the likely patrons and zip code. The most common zip code for probable patrons is “B” or “3, 4, & 5.” The target market should include the population from zip codes 3, 4, or 5.

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Ho: There is no relationship between “Likely Patrons” and “Listens to Radio” H1: There is a relationship between “Likely Patrons” and “Listens to Radio” Crosstab Would you describe yourself as one who listens to the radio?

1 if probable patron

.00 1.00

Total

Yes 277 108 385

Total

No 13 2 15

290 110 400

Chi-Square Tests

Pearson Chi-Square Continuity Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

1

Asymp. Sig. (2-sided) .210

.917

1

.338

1.803

1

.179

Value 1.569(b)

1.565

df

1

Exact Sig. (2-sided)

Exact Sig. (1-sided)

.255

.170

.211

400

The Pearson Chi-Square significance value is .210, and because of this there is insufficient evidence to reject the null hypothesis (the significance level is greater than .05.) This means that there is no relationship between “likely patrons” and “listening to radio.” Therefore, it would not be wise to have the target market be defined by whether or not someone describes themselves as “one who listening to the radio.”

Ho: There is no relationship between “Likely Patrons” and “Viewer of TV local news” H1: There is a relationship between “Likely Patrons” and “Viewer of TV local news” Crosstab Would you describe yourself as a viewer of TV local news?

1 if probable patron Total

.00 1.00

Yes 246 110 356

Total

No 44 0 44

290 110 400

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Chi-Square Tests

Pearson Chi-Square Continuity Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

1

Asymp. Sig. (2-sided) .000

17.235

1

.000

30.313

1

.000

Value 18.752(b)

Df

18.706

1

Exact Sig. (2-sided)

Exact Sig. (1-sided)

.000

.000

.000

400 a Computed only for a 2x2 table b 0 cells (.0%) have expected count less than 5. The minimum expected count is 12.10.

“Viewer of local TV news” has a p-value of .000, which means there is sufficient evidence to reject the null hypothesis. Therefore, we can assume there is a relationship between “likely patrons” and “viewer of TV local news.” All of the probable patrons selected yes, when asked if they were viewers of local TV news. Since the survey showed vastly that the probable patrons viewed local TV news, Dean should strive for his target market to include viewers of local TV news. Ho: There is no relationship between “Likely Patrons” and “Read the newspaper” H1: There is a relationship between “Likely Patrons” and “Read the newspaper” Crosstab Do you read the newspaper? 1 if probable patron

.00 1.00

Total

Yes 274 104 378

Total

No 16 6 22

290 110 400

Chi-Square Tests

Pearson Chi-Square Continuity Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

1

Asymp. Sig. (2-sided) .980

.000

1

1.000

.001

1

.980

Value .001(b)

.001

df

1

Exact Sig. (2-sided)

Exact Sig. (1-sided)

1.000

.599

.980

400

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The significance value is shown to be .980, which clearly shows that there is insufficient evidence to reject the null hypothesis. Therefore, there is no relationship between likely patrons and reading the newspaper. Dean’s target market should not include any media habits relating to whether or not they read the newspaper. Ho: There is no relationship between “Likely Patrons” and “City Magazine” H1: There is a relationship between “Likely Patrons” and “City Magazine” Crosstab

Do you subscribe to City Magazine? Yes 1 if probable patron

.00 1.00

Total

Total

No

84 97 181

206 13 219

290 110 400

Chi-Square Tests

Pearson Chi-Square Continuity Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

Value 112.878(b )

Asymp. Sig. (2-sided)

df 1

.000

110.501

1

.000

121.910

1

.000

112.596

1

Exact Sig. (2-sided)

Exact Sig. (1-sided)

.000

.000

.000

400

Due to the p-value being .000, there is sufficient evidence to reject the null hypothesis and conclude that there is a relationship between likely patrons and subscribing to City Magazine. The likely patrons were more likely to have subscribed to City Magazine than to not subscribe. Therefore, Dean’s target market should focus on individuals who subscribe to the City Magazine.

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Ho: There is no relationship between “Likely Patrons” and “Type of Radio” H1: There is a relationship between “Likely Patrons” and “Type of Radio” Crosstab

To which type of radio programming do you most often listen?

1 if probable patron

.00 1.00

Total

Country&West ern 60 6 66

Easy Listening 20 58 78

Rock 154 5 159

Talk/News 43 39 82

Total 277 108 385

Chi-Square Tests

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value 158.965(a ) 170.017 .312

Asymp. Sig. (2-sided)

df 3

.000

3

.000

1

.577

385

a 0 cells (.0%) have expected count less than 5. The minimum expected count is 18.51.

The significance value is .000, therefore we have sufficient evidence to reject the null hypothesis. This implies that there is a relationship between the likely patrons and type of radio programming. The statistics show that the most common radio program for likely patrons is either easy listening or talk/news. Clearly, Dean should make sure his target market includes people who listen to talk/news or easy listening. Ho: There is no relationship between “Likely Patrons” and “Most Frequent Newscast” H1: There is a relationship between “Likely Patrons” and “Most Frequent Newscast” Crosstab

1 if probable patron Total

.00 1.00

Which newscast do you watch most frequently? 10:00 pm 7:00 am News Noon News 6:00 pm News News 26 1 45 174 6 0 84 20 32 1 129 194

Total 246 110 356

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Chi-Square Tests

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value 111.916(a ) 113.734

Asymp. Sig. (2-sided)

df

17.160

3

.000

3

.000

1

.000

356

There is significant evidence to reject the null hypothesis because of the significance level of .000. We can therefore conclude a relationship between “likely patrons” and “which newscast is most frequently watched” exists. Probable patrons responded that they typically most often watch the 6:00 pm news. Dean’s target market should include people who watch the 6:00 pm news. Ho: There is no relationship between “Likely Patrons” and “Most Frequent Newspaper” H1: There is a relationship between “Likely Patrons” and “Most Frequent Newspaper” Crosstab

Which section of the local newspaper would you say you read most frequently?

1 if probable patron Total

.00 1.00

Editorial 19 33 52

Business 14 51 65

Local 113 5 118

Classifieds 53 4 57

Life, Health & Entertainment 76 11 87

Total 275 104 379

Chi-Square Tests

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value 172.283(a ) 172.986 87.505

Asymp. Sig. (2-sided)

df 4

.000

4

.000

1

.000

379

Because the significance level is .000, there is enough evidence to reject the null hypothesis and conclude that there is a relationship between “section of local newspaper read” and likely patrons. The majority of the group who were classified as probable patrons replied that they most often read the editorial or business sections.

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10. Use regression analysis to determine which restaurant features are related to consumers’ likelihood of patronizing The Hobbits’ Choice Restaurant? Model Summary Adjusted Std. Error of R R Square R Square the Estimate .816(a) .666 .658 .724 a Predictors: (Constant), Prefer Jazz Combo, Prefer Large Variety of Entrees, Prefer String Quartet, Prefer Drive Less than 30 Minutes, Prefer Waterfront View, Prefer Unusual Entrees, Prefer Unusual Desserts, Prefer Elegant Decor, Prefer Simple Decor, Prefer Formal Waitstaff Wearing Tuxedos Model 1

Ho: all betas = 0 (none of the predictors affect “likely to patronize”) H1: at least one beta is greater than or equal to zero The R-squared is .666 or 2/3. This R-Squared level means that 2/3 of the variation can be explained by the variables. Therefore, the last 1/3 of the variation is due to error. We should reject the null hypothesis because some of the predictors have an effect on “likely to patronize.” However, the following variables don’t have an effect on likelihood to patronize (because their significance values are greater than .05) drive less than 30 minutes, prefer unusual deserts and prefer string quartet. The remainder of the variables are statistically significant in predicting “likelihood to patronize.”

ANOVA(b) Sum of Squares df Mean Square F Sig. Regression 407.129 10 40.713 77.684 .000(a) Residual 203.868 389 .524 Total 610.998 399 a Predictors: (Constant), Prefer Jazz Combo, Prefer Large Variety of Entrees, Prefer String Quartet, Prefer Drive Less than 30 Minutes, Prefer Waterfront View, Prefer Unusual Entrees, Prefer Unusual Desserts, Prefer Elegant Decor, Prefer Simple Decor, Prefer Formal Waitstaff Wearing Tuxedos b Dependent Variable: How likely would it be for you to patronize this restaurant (new upscale restaurant)? Model 1

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The predictor that is most important is “Prefer formal wait staff in tuxedos.” Its significance value is .000 and the beta is .371. Dean would be wise to consider dressing his wait staff in tuxedos because this is clearly valued by the patrons he is looking for. The next most important predictor is “Prefer Simple Décor.” The significance value is .000 and the beta is -.350. The beta is negative, meaning that the predictor has a negative effect on likelihood to patron. “Prefer Elegant Décor”, however, has a beta of .201. The significance value for elegant décor is .018 which makes it still significant. Clearly, Dean would be best off decorating with Elegant Décor instead of Simple Décor. “Prefer large variety of entrees” is also a high predictor of likelihood to patronize, it has a significance value of .000. The beta is -.242. The beta of -.242 shows that it is negatively correlated with “likelihood to patronize.” The predictor for “preferring a waterfront view” is significant with a p value of .003, and a beta of .194. This means that the variables are positively correlated. Essentially, it appears that the more likely you are to be a probable patron, the more likely that you prefer a waterfront view. When picking out a location of the restaurant, Dean would be wise to spend the extra money for a waterfront view since his potential customers seem to prefer it. With type of music, the variable for string quarter produced a coefficient of .185. This means that there was insufficient evidence to reject the null hypothesis. Jazz Combo on the other hand has a p value of .000 which makes it statistically significant. The beta is .121, showing again that there is a positive correlation among the variables. Dean’s decision should be to use jazz music over a string quartet for the restaurant.

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The statistical test shows that “prefer drive less than 30 minutes” doesn’t have much relevance on the survey respondents. The significance level (.957) shows that they did not really prefer to drive less, and that there actually was no relationship. Therefore, Dean shouldn’t worry much about closeness when it comes to the location of his restaurant. Lastly, when it comes to “unusual menu options,” there is sufficient evidence to reject null hypothesis. The significance level is .024 for unusual entrees, the beta is .174 (there is a positive correlation.) On the other hand, unusual desserts’ significance level is .192. So there isn’t a reason to think that there is a relationship between unusual desserts and likelihood of patronizing. From this we can conclude that when Dean is selecting choices for the menu, he should focus on the unusual entrees. Consumers seem to prefer unusual entrees but not necessarily unusual desserts.

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