When Mario is thirsty, he always buys a Pepsi. Like many consumers, Mario engages in considerable alternative evaluation when buying habitual products like his Pepsi. True False
Added by Timothy M.
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Habitual products are items that consumers purchase regularly and with little thought, often due to brand loyalty or routine. Show more…
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In the 1970s and 1980s, PepsiCo, maker of Pepsi, began airing television commercials in which it claimed more cola drinkers preferred Pepsi over Coca-Cola in a blind taste test. The Coca-Cola Company, maker of Coca-Cola, was the market leader in soda sales. After the television ads began airing, Pepsi sales increased and began rivaling Coca-Cola sales. Assume the claim is that more than 50% of cola drinkers preferred Pepsi over Coca-Cola. You work for an independent market research firm and are asked to test this claim. EXERCISES: How Would You Do It? (a) When PepsiCo performed this challenge, PepsiCo representatives went to shopping malls to obtain their sample. Do you think this type of sampling is representative of the population? Explain. (b) What sampling technique would you use to select the sample for your study? (c) Identify possible flaws or biases in your study.
Sri K.
"Cola Wars" is the popular term for the intense competition between Coca-Cola and Pepsi. Their campaigns have featured movie and television stars, rock videos, athletic endorsements, and claims of consumer preference based on taste tests. Suppose, as part of a Canadian Pepsi marketing campaign, Pepsi wants to show that cola drinkers actually prefer Pepsi on taste alone. 1,000 cola consumers in Winnipeg Manitoba are given a blind taste test (i.e., a taste test in which the two brand names are disguised as either Brand A or Brand B). Each consumer is asked to state a preference from Brand A or Brand B, which the staff can then map back to Pepsi or Coca-Cola. The taste test is done at a mall over 3 weekends, asking for volunteers as customers enter a grocery store. What issues might arise when trying to infer from this sample to the larger pool of all consumers?
Frank D.
In the 1970s and 1980s, PepsiCo, maker of Pepsi®, began airing television commercials in which it claimed more cola drinkers preferred Pepsi® over Coca-Cola® in a blind taste test. The Coca-Cola Company, maker of Coca-Cola®, was the market leader in soda sales. After the television ads began airing, Pepsi® sales increased and began rivaling Coca-Cola® sales. Assume the claim is that more than 50% of cola drinkers preferred Pepsi® over Coca-Cola®. You work for an independent market research firm and are asked to test this claim. EXERCISES 1. How Would You Do It? (a) When PepsiCo performed this challenge, PepsiCo representatives went to shopping malls to obtain their sample. Do you think this type of sampling is representative of the population? Explain. (b) What sampling technique would you use to select the sample for your study? (c) Identify possible flaws or biases in your study. 2. Testing a Proportion In your study, 280 out of 560 cola drinkers prefer Pepsi® over Coca-Cola®. Using these results, test the claim that more than 50% of cola drinkers prefer Pepsi® over Coca-Cola®. Use α = 0.05. Interpret your decision in the context of the original claim. Does the decision support PepsiCo’s claim? 3. Labeling Influence The Baylor College of Medicine decided to replicate this taste test by monitoring brain activity while conducting the test on participants. They also wanted to see whether brand labeling would affect the results. When participants were shown which cola they were sampling, Coca-Cola® was preferred by 75% of the participants. What conclusions can you draw from this study? 4. Your Conclusions (a) Why do you think PepsiCo used a blind taste test? (b) Do you think brand image or taste has more influence on consumer preferences for cola? (c) What other factors may influence consumer preferences besides taste and branding?
Breanna O.
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