What's the Price?

SAJJAD RAZA

Agenda!

Hypothesis Definition Procedure Hypotheses

TestingMarketing

Implications

Statistical Tools : SPSS v17• Hypothesis Testing• Bivariate Correlation

Matrix• Distributions Analysis

Hypotheses Definition1. Gender2. Age3. Income Level4. Branded/Generic5. Intended Product6. Card/Cash7. Freq. of Rebuy8. Stress (Cognitive Load)9. Pick Sequence10. Visible Catchy Label11. Discount Offer

Hypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Price Recall Error %

Hypotheses DefinitionNull Hypothesis:Ho = No significant relationship exists between

the Price Recall Error % and Hypothesized Variable X

Alternative Hypothesis:H1 = Statistically significant relationship exists

between the Price Recall Error % and Hypothesized Variable X

Hypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Procedure

• Total Surveys = 45 (202 Records)• Categories:– Under Cognitive Load (Stress)– No Stress

• Location:– Migros (Koc Uni)– Carrefour

Hypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Procedure – Without StressHypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Observation•Pick Sequence

•Discount Offer

•Branded Generic

•etc

Price Recall Testing

Statistical

Analysis

Procedure – Under StressHypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Survey Distribution

Price Recall Error %

• Price Recall Error %:

– Overestimation -– Underestimation +

• Absolute of Price Recall Error %

Females are Smarter than Males!!

For Sure!!

Price Recall

Hypotheses Testing - Gender

• Results: Females recall better then males Females overestimate & Males underestimate

Hypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Hypotheses Testing - Age

• U-shape relationship• Middle generation better in recalling

compared to younger & older generation

Hypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Hypotheses Testing Under Stress

• Non-Occupied recall better than Pre-Occupied

• Pre-Occupied people underestimate

Hypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Distraction: catchy screens, music, shop assistants

Hypotheses Testing Branded/Generic

• Better recall for branded products than generic? No!!

• Branded overestimate & Generic underestimate!

Hypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Hypotheses Testing – Intended

• Better recall for intend-to-buy products

• In both cases underestimation

Hypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Encourage non-intended products purchases

Tools: coupons, discounts, POP’s etc.

Hypotheses Testing – Freq of Rebuy• Recall becomes better after more frequent purchases• Underestimation; after 5 times overestimation

Hypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Loyal customers: consistent pricing strategy

Hypotheses Testing – Cash/Card

• Recall is better when paid by credit card!• Overestimation by credit card &

underestimation by cash!

Hypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

Hypotheses Testing Income Level

• Lower income people overestimate, higher underestimate

• People with income between 300 - 900 TL and then 4000-8000 TL recall better

Hypothesis Definition

Procedure

Hypotheses Testing

Marketing Implications

You can charge more to your higher income target

Survey Limitations

Limitation< 30 Records

Thanks! Q&A