To ensure a successful test marketing of its OmniPower energy bars, the OmniFoods marketing department has contracted with In-Store Placements Group (ISPG), a merchandising consult-ing firm. ISPG will work with the grocery store chain that is conducting the test-market study. Using the same 34-store

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To ensure a successful test marketing of its OmniPower energy bars, the OmniFoods marketing department has contracted with In-Store Placements Group (ISPG), a merchandising consult-ing firm. ISPG will work with the grocery store chain that is conducting the test-market study. Using the same 34-store sam-ple used in the test-market study, ISPG claims that the choice of shelf location and the presence of in-store OmniPower coupon dispensers both increase sales of the energy bars

1. Are the supporting data consistent with ISPG’s claims? Perform an appropriate statistical analysis to confirm (or discredit) the stated relationship between sales and the two independent variables of product shelf location and the pres-ence of in-store OmniPower coupon dispensers.

(Please use multpile regression)

2. If you were advising OmniFoods, would you recommend using a specific shelf location and in-store coupon dispens-ers to sell OmniPower bars?

3. What additional data would you advise collecting in order to determine the effectiveness of the sales promotion tech-niques used by ISPG?

 

Bars Price Promotion End-Cap Dispensers
4141 59 200 Produce Yes
3842 59 200 Produce Yes
3056 59 200 Beverage No
3519 59 200 Beverage Yes
4226 59 400 Produce No
4630 59 400 Beverage Yes
3507 59 400 Beverage Yes
3754 59 400 Produce Yes
5000 59 600 Produce No
5120 59 600 Produce No
4011 59 600 Beverage Yes
5015 59 600 Beverage No
1916 79 200 Beverage No
675 79 200 Beverage No
3636 79 200 Produce No
3224 79 200 Produce Yes
2295 79 400 Beverage No
2730 79 400 Beverage Yes
2618 79 400 Beverage No
4421 79 400 Produce Yes
4113 79 600 Produce Yes
3746 79 600 Beverage No
3532 79 600 Beverage No
3825 79 600 Beverage No
1096 99 200 Beverage Yes
761 99 200 Beverage Yes
2088 99 200 Produce Yes
820 99 200 Beverage Yes
2114 99 400 Produce Yes
1882 99 400 Beverage No
2159 99 400 Produce No
1602 99 400 Beverage Yes
3354 99 600 Produce No
2927 99 600 Produce No
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