Hispanics have become an influential and desirable market due to their populatio

Question

Hispanics have become an influential and desirable market due to their population growth rate and their purchasing power potential. The estimated purchasing power of Hispanics this year was estimated at $704 billion. This purchasing power represents substantial opportunity for marketers, especially for those depending on sales growth.Corporations are changing their sales and distribution strategies in order to specifically target this market segment. According to the DirectMarketing Association (DMA), the paper catalog is still the largest revenue generator; 50% of sales among all channels used by companies that sell goods to consumers and businesses from a remote location.

L.L. Bean has been a traditional catalog/online seller among the U.S. general market. They now seek to extend their market by penetrating the Hispanic sub-segment. DMA research suggests there is a consistent growth in the Hispanic market segment. However, reaching the Hispanic market segment has its challenges. L.L. Bean needs to decide whether to send their catalog to Hispanic households in English or Spanish. Therefore, they need to determine Hispanic consumers’ language preferences when shopping at a distance, (via mail, telemarketing, catalog, online) in an effort to improve direct selling specially catered for the Hispanic market segment. To address this issue, L.L. Bean hired a
marketing research company to provide the information needed to make the decision. In order to describe the language preferences of Hispanics a sample of 400 Hispanic consumers was randomly selected from a phone data bank; surveys were conducted by telephone in English or Spanish according to the respondents’ preferences. The researchers included following variable in the survey: Catalog Language Preference (1 = English, 2 =Spanish).

After the data were collected the researchers summarized the sample data. Below are two data tables from the survey
results.

9. Refer to QB and QC. What is the central tendency for those likely to open the catalog written in Spanish?
a. 10% - Very likely
b. 25% - Somewhat likely
c. 45% - Not very likely
d. 15% - not at all likely

10. Refer to QB and QC. Based the data tables from QB and QC of the survey, which of the following would be true? In order for LL Bean to increase likelihood of Hispanic household to open its catalog, LL Bean should…
a. Produce and mail catalogs written in Spanish to Hispanic households
b. Produce and mail catalogs written in English to Hispanic households
c. Produce and mail some catalogs written in Spanish and some written in English to Hispanic households
d. None of the above

11. The researchers conducted a hypothesis test to determine the percent of Hispanic households that prefer to browse a catalog in Spanish. They tested the following hypotheses: Ho: greater than or equal to 30%. The calculated Z score is 3.68. With 95% confidence the researcher should conclude that the hypothesis __________
supported and thus should __________ the hypothesis.
a. is; accept
b. is, reject
c. is not; accept
d. is not, reject

12. Refer to QD. The response scale employed in question QD is?
a. Categorical
b. Metric
c. Aided
d. None of the above

13. Refer to QD. What is the variability of this question?
a. 1.3 to 2.7
b. 2.7 to 4
c. 1.3 to 4
d. 1 to 4

14. Refer to QD. What is the central tendency of this question?
a. 1
b. 1.3
c. 2.7
d. 4

15. Refer to QD. Assuming a 95% confidence level, the confidence interval for this question is ___ , ___.
a. 1.3, 2.7
b. 2.5-2.9
c. 2.6, 2.8
d. 2.9, 4.0

OB. If you received a clothing catalog in the mail that was written in Spanish, how likely would you be to open it? Extremely likely Very likely 105 25$ mewhat likely Not very likely 45% Not at all likely 15 QC. If you received a clothing catalog in the mail that was written in English, how likely would you be to open it? Extremely likely 253 likely 47 Somewhat likely 15$ Not very likely 108 Not at all likely

Explanation / Answer

9.b, Going by central tendency of median, is somewhat likely 25%

10.b, as table QC clearly indicates more likeliness in case of English as catalog language

11. d, as z value is high as for 95% confidence interval z is -1.96 to 1.96 , hence reject null hypothesis

12.b,

13.c, 2.7 +- 1.3

14.c, average value

15.c,

Z - 1.96 for 95%

Mean 2.7

Standard deviation 1.3

Sample size 400

Interval - x +/- z*sd/400

2.7 +/- 1.96*1.3/20

2.7. +/- .12

2.6 to 2.8

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