In the USA, does it matter what a business sells, in which state it's located, and how much it charges?

LIM Chee Kong
12 November 2015

Introduction

  • The Marketing Mix is used to produce goods and services to meet the needs and wants of consumers.

  • The Mix consists of the 4 Ps, which are Product, Price, Place and Promotion. The 4 Ps are marketing considerations

  • The purpose of this paper is to use Big Data as non marketing considerations in coming up with the Marketing Mix

  • We use Inferential Statistics, to test the hypothesis that there is no difference among the categories, states and price ranges

Plot (Distribution of US stars)

plot of chunk unnamed-chunk-1

Methodology

  • Since the distribution of US stars, which is the response variable, is not Gaussian, we use the Kruskal-Wallis Test, a nonparametric test

  • Explanatory variables are 'Cat', 'state' and 'Price.Range'

  • The p value for Cat, state and Price.Range are all less than or equal to 1.58e-14; we reject the null hypotheses

  • An aggregate table using the explanatory variables will be used to answer the research question

Results

   Cat state Price.Range    stars
1    9    IL           1 5.000000
2    3    NC           1 5.000000
3    2    SC           2 5.000000
4    2    WI           2 5.000000
5   17    NV           3 5.000000
6    6    NV           1 4.875000
7   17    NV           2 4.750000
8    9    PA           2 4.666667
9    2    AZ           1 4.500000
10  17    AZ           1 4.500000
  • From the table, it really matters what a business sells, in which state it's located, and how much it charges.