Stat individual project

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Stat individual project

  1. 1. By: Stephen Exeter
  2. 2.  Two articles were based off individual blind taste tests of Pepsi and Coca-cola.  They wanted to see if people base their consumption off taste or how well they can relate to the product.  How presentation or commercials alter your selection.  I will prepare a hypothesis test answering whether half of the individuals prefer Pepsi over coke.
  3. 3.  Coke or Pepsi? In Fact it’s all in the mind by: Mark Henderson  This article shows how taste is as much a mental thing as it is a taste-bud thing.  People have clear preferences when it comes to Pepsi or Coke, but when it’s a “blind” test situation, the results are different.  Brain-scanning technology shows how easily cultural influences can affect perceptions, rather the senses.
  4. 4.  The test consisted of 67 volunteers who were blindly tested while having their brains monitored.  Coca-cola is doing a better job of appealing to customers.  Samuel McClure, who led the research at Baylor College said “Coca-Cola and Pepsi are nearly identical in chemical composition, yet humans routinely display a strong subjective preference for one or another.”
  5. 5.  Coke vs. Pepsi: The Taste Test They Don't Want You to Know About. By: Andy goldsmith, VP creative and brand strategy, American cancer society.  Coke was preferred by 75% to 25% during the straight test, Coke is more related to memory & cognition. Pepsi was not.  The brain studies suggest that Coke’s iconic brand and stronger cultural connection may be the difference in preference. And preference is linked not just to taste.
  6. 6.  Through the brain scanning it was discovered that Cultural cues an imagery that Coke has created can indeed have a bias on preference.  One man said after 16 years of drinking strictly diet coke he said he would definitely be able to tell the difference in a taste test, but failed horribly.  However, one girl who doesn’t drink soda at all deciphered the difference between the two in the 2 out of 3 test.
  7. 7.  My data file compared Coke to Pepsi on preference with a total of 635 individuals participating in the study.  There was 446 females and 189 males.  Interesting ratio of 2.4 females to each male.
  8. 8. 0 50 100 150 200 250 Between 20 and 40 Between 40 and 60 Less than 20 Over 60 F M
  9. 9. 0 50 100 150 200 250 Coke Pepsi F M
  10. 10. sample proportion 46% population proportion 51% std error 0.01983793 sample size 635 test statistic (obs) -2.77 critical measure 1.64 p-value 0.00283 a-level 5%
  11. 11. NULL: p <= 50% More then half do not prefer pepsi ALTERNATIVE: p > 50% More then half do prefer pepsi one-tailed or two-tailed? 1 obs > critical? yes p-value < a-level? yes Accept the Null Statement : More then half do not prefer Pepsi.
  12. 12.  Based off this study alone I would make a recommendation to both Pepsi and Coca-Cola.  Pepsi- They should revise their overall advertisement and display strategies. This study shows that people clearly connect better with the coca-cola image.  Coca-Cola – Continue on the same path to success. They have won a blind taste test against their rivals, and have a better connection cognitively with their customers.
  13. 13.  This study has clearly shown how people do make consumption decisions based off social perceptions or design rather than on taste alone.  It is interesting that many soda drinkers struggled when it came down to making a decision on their favorite brand.  Over the years people can recall a fond memory of a coke commercial over a Pepsi advertisement.
  14. 14.  More companies may want to take a page out of Coke’s book, and vamp up their advertising and image. It has been shown that on those two factors alone, you can increase sales.  It is more than likely we all are effected the same way by decisions like these, rather than on taste alone.
  15. 15.  Questions ?

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