Chapter18 - Determining and Interpreting Associations Among...

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Determining and Interpreting Associations Among Variables
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Ch 18 2 Associative Analyses Associative analyses: determine where stable relationships exist between two variables Examples What methods of doing business are associated with level of customer satisfaction? What demographic variables are associated with repeat buying of Brand A? Is type of sales training associated with sales performance of sales representatives? Are purchase intention scores of a new product associated with actual sales of the product?
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Ch 18 3 Relationships Between Two Variables Relationship: a consistent, systematic linkage between the levels or labels for two variables “Levels” refers to the characteristics of description for interval or ratio scales…the level of temperature, etc. “Labels” refers to the characteristics of description for nominal or ordinal scales, buyers v. non-buyers, etc. As we shall see, this concept is important in understanding the type of relationship…
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Ch 18 4 Relationships Between Two Variables Nonmonotonic: two variables are associated, but only in a very general sense; don’t know “direction” of relationship, but we do know that the presence (or absence) of one variable is associated with the presence (or absence) of another. At the presence of breakfast, we shall have the presence of orders for coffee. At the presence of lunch, we shall have the absence of orders for coffee.
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Ch 18 5 Nonmonotonic Relationship
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Ch 18 6 Relationships Between Two Variables Monotonic: the general direction of a relationship between two variables is known Increasing Decreasing Shoe store managers know that there is an association between the age of a child and shoe size. The older a child, the larger the shoe size. The direction is increasing, though we only know general direction, not actual size.
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Ch 18 7 Monotonic Increasing Relationship
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Ch 18 8 Relationships Between Two Variables Linear: “straight-line” association between two variables Here knowledge of one variable will yield knowledge of another variable “100 customers produce $500 in revenue at Jack-in-the-Box” (p. 525)
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Ch 18 9 Relationships Between Two Variables Curvilinear: some smooth curve pattern describes the association Example: Research shows that job satisfaction is high when one first starts to work for a company but goes down after a few years and then back up after workers have been with the same company for many years. This would be a U-shaped relationship.
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10 Characterizing Relationships Between Variables 1. Presence: whether any systematic relationship exists between two variables of interest 2. Direction: whether the relationship is positive or negative 3. Strength of association: how strong the relationship is: strong? moderate? weak?
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This note was uploaded on 04/14/2009 for the course MKT 232 taught by Professor Staff during the Spring '08 term at Illinois State.

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Chapter18 - Determining and Interpreting Associations Among...

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