TABLE 11-9
the Marketing Manager of a Company Producing a New

question 97

True/False

TABLE 11-9
The marketing manager of a company producing a new cereal aimed for children wants to examine the effect of the color and shape of the box's logo on the approval rating of the cereal. He combined 4 colors and 3 shapes to produce a total of 12 designs. Each logo was presented to 2 different groups (a total of 24 groups) and the approval rating for each was recorded and is shown below. The manager analyzed these data using the ? = 0.05 level of significance for all inferences.
$\begin{array}{l}\text { \quad\quad\quad\quad\quad\quad\quad\quad COLORS }\\\begin{array}{lllll}\text { SHAPES } & \text { Red } & \text { Green } & \text { Blue } & \text { Yellow } \\\hline \text { Circle } & 54 & 67 & 36 & 45 \\& 44 & 61 & 44 & 41 \\\text { Square } & 34 & 56 & 36 & 21 \\& 36 & 58 & 30 & 25 \\\text { Diamond } & 46 & 60 & 34 & 31 \\& 48 & 60 & 38 & 33\end{array}\end{array}$

$\text { Analysis of Variance }$
$\begin{array}{lrrrrr}\hline \text { Source } & d f & {\text { SS }} & {\text { MS }} & {F} & p \\\hline \text { Colors } & 3 & 2711.17 & 903.72 & 72.30 & 0.000 \\\text { Shapes } & 2 & 579.00 & 289.50 & 23.16 & 0.000 \\\text { Interaction } & 6 & 150.33 & 25.06 & 2.00 & 0.144 \\\text { Error } & 12 & 150.00 & 12.50 & & \\\text { Total } & 23 & 3590.50 & & &\end{array}$



-Referring to Table 11-9, based on the results of the hypothesis test, it appears that there is a significant effect on the approval rating associated with the color of the logo.

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Definitions:

Naked Horizontal Restraint

An antitrust term referring to an agreement between competitors at the same level of the market structure to limit competition among themselves, such as price fixing or market division.

Rule Of Reason

A doctrine used in antitrust law to determine if a business practice is reasonable and therefore legal, focusing on its effect on competition.

Per Se Rule

A legal doctrine declaring that certain actions are inherently illegal and do not require detailed proof of harm or anti-competitive effect to establish their illegality.

Monopoly Power

Monopoly power refers to the ability of a single company or entity to control a significant portion of the market for a particular good or service, limiting competition and potentially influencing prices or terms of sale.