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A Beverage Distributor Wanted to Determine the Combination of Advertising

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Essay

A beverage distributor wanted to determine the combination of advertising agency (two levels) and advertising medium (three levels) that would produce the largest increase in sales per advertising dollar. Each of the advertising agencies prepared ads as required for each of the media-- newspaper, radio, and television. Twelve small towns of roughly the same size were selected for the experiment, and two each were randomly assigned to receive an advertisement prepared and transmitted by each of the six agency-medium
combinations. The dollar increases in sales per advertising dollar, based on a 1-month sales period, are shown in the table.

Advertising Medium  Newspaper  Radio  Television  Agency 1 15.3,12.717.4,20.116.2,12.7 Agency 222.4,18.924.3,28.89.4,12.5\begin{array}{l}\text {\quad\quad\quad\quad\quad\quad\quad\quad\quad Advertising Medium }\\\begin{array} { l | c | c | c } & { \text { Newspaper } } & \text { Radio } & \text { Television } \\\hline \text { Agency 1 } & 15.3,12.7 & 17.4,20.1 & 16.2,12.7 \\\text { Agency } 2 & 22.4,18.9 & 24.3,28.8 & 9.4,12.5\end{array}\end{array} The SPSS analysis is shown below.

* * * A N A L YSIS OF V ARIANCE***
SALES
BY AGENCY
MEDIUM
 Sum of  Mean  Signif  of F  Source of Variation  Squares  DF  Square  F  Main Effects 238.299379.43313.934.004\begin{array} { c l c c c r } & \text { Sum of } & & \text { Mean } & & \begin{array} { r } \text { Signif } \\ \text { of F } \end{array} \\ \text { Source of Variation } & \text { Squares } & \text { DF } & \text { Square } & \text { F } & \\ \text { Main Effects } & 238.299 & 3 & 79.433 & 13.934 & .004 \end{array}  AGENCY 39.967139.9677.011.038 MEDIUM 198.332299.16617.395.003 AGENCY*MEDIUM 77.345238.6726.784.029 Explained 315.644563.12911.074.005 Residual 34.20565.701 Total 349.8491131.804\begin{array} { c r r r r r } \text { AGENCY } & 39.967 & 1 & 39.967 & 7.011 & .038 \\\text { MEDIUM } & 198.332 & 2 & 99.166 & 17.395 & .003 \\\text { AGENCY*MEDIUM } & 77.345 & 2 & 38.672 & 6.784 & .029 \\& & & & & \\\text { Explained } & 315.644 & 5 & 63.129 & 11.074 & .005 \\\text { Residual } & 34.205 & 6 & 5.701 & & \\\text { Total } & 349.849 & 11 & 31.804 & &\end{array} (Note: SPSS uses "Explained" instead of "Treatment" in the factorial analysis. Also, SPSS uses "Residual" instead of "Error.") Would you test the main effects factors, agency and medium, in this example? Explain why or why not.

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Definitions:

Primary Auditory Cortex

The region of the brain located in the temporal lobe that is responsible for processing auditory information.

Wernicke's Area

A region in the brain responsible for the comprehension of speech and language.

Broca's Area

A region in the frontal lobe of the dominant hemisphere of the brain associated with speech production and language processing.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others, and understand that others have beliefs and perspectives different from one's own.

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