1
Coursework
2
Question
A
Service bundling is the practice of marketing two or more services in a single package. For
example, Virgin Media’s bundle package includes Broadband, Digital TV, Calls package and
Line  rental.  Marketers  spend
billions  of  dollars  each  year  to  promote  service  bundles  by
emphasizing incentives such as savings discounts, convenient billing options, and free gifts.
A  group  of  researchers  from  the  US
1
studied  the  effects  of  bundle  incentives  on  300
consumers’ percei
ved value, search intentions for alternative service providers, and switching
intentions to a competitor.
Perceived Value, Switching Intentions and Search intentions were measured on a continuous
scale.
Service Bundles was a categorical variable with thre
e categories:
?
Unbundled
?
Bundled

convenience only
?
Bundled

10% Savings discount
The authors used one

way ANOVAs to examine the effect of bundles types on Perceived
Value, Switching Intentions and Search Intentions.
1.
What is ANOVA? How many types do y
(5 marks)
The ANOVA table for the results was:
2
.
Did bundle type affect significantly any of the continuous variables? Comment on the p

value.
(4 marks)
3
.
Which continuous variable do you thi
nk bundle type affects more? Comment on the F
value.
(4 marks)
4
.
The post

hoc mean differences for perceived value between bundle types are shown in the
below table:
1
M.K. (2010). The effect of
incentives on customer evaluations of service bundles.
,
63
(1), pp. 71

76.
2
Differences (I

J) between bundle types
*
p<0.05
significance and the signs of each paired differences.
(8 marks)
5
.
In your opinion, do bundled services increase customer’s perceived value for the product?
(4 marks)

1
Coursework
3
:
Question A
A researcher is testing the null hypothesis that there is no relationship between two
continuous  variables  (customers’  satisfaction:  continuous  dependent  variable  and
service  quality
:  continuous  independent
variable).  From  a  sample  of  n  =  16,  she
determines that b
1
= +4.8 and S
b1
= 1.6.
a)
What is the value
of t
STAT
?
(4 marks)
b)
What  statistical  decision  should  the  researcher  make?  (for  95%  confidence
intervals, the t value is

2.145 and +2.145).
(4 marks)
c)
Construct a 95% confidence interval estimate of the population slope,
ß
1
(for 95%
confidence intervals, the t value is

2.145 and +2.145).
(4 marks)
Question
B
The marketing manager of a large supermarket chain has the
using shelf space more efficiently. Toward that goal, he would like to use shelf space
to predict the sales of pet food. Data is collected from a random sample of 12 equal

sized stores. For those data, SSR = 20535 and SST = 30025.
a
)
Determine the coefficient of determination, r
2
, and interpret its meaning.
(4 marks)
b)
Determine the standard error of the estimate.
(4 marks)
Question C
What  is  Simple  Linear  Regression?  What  are  the  assumptions  of  Simple  Linear
Regression?
(5 marks)
2
Question D
A  group  of  researchers  from  the  UK
1
has  attempted  to  address  the  relationship
between  business  strategy  and  firm  performance,  by
present
ing
an  empirical
investigation of medium and large, high
technology, indus
trial manufacturing firms.
Business performance was measured on a continuous scale.
five
dimensions, each also measured on a continuous
scale:
?
Aggressiveness
?
Analysis
?
Defensiveness
?
Futurity
?
Riskiness
After  collecting
a  satisfactory  sample,  the  researchers  examined  the  correlation
between the dependent variable (business performance) and the independent variables
(Aggressiveness, Analysis, Defensiveness, Futurity and
Riskines
s). Their results are
shown in Table 1, prod
uced in SPSS.
Table 1. Correlation coefficients among the dependent & independent variables
p

value
Aggressiveness

0.04
0.75
Analysis
0.34
0.04
Defensiveness
0.29
0.03
Futurity
0.21
0.03
Riskiness
0.01
0.89
a)
Give the defini
tion of correlation. What are the general assumptions of correlation?
(6 marks)
b)
Discuss the results of Table 1 in terms of their statistical significance, mag
nitude
and direction.
(8 marks)
c)
Can  you  conclude  that  an  increase  in  agg
(2 marks)
d)
What would be your advice to managers who want to improve the performance of
(4 marks)
Question E
What are the two type
s of Chi

square test? Please, discuss each type.
(5 marks)
1
Morgan, R.E. and Strong, C.A. (2003).
Business performance and dimensions of strategic orientation.