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Question 7.109

7.109 Can snobby salespeople boost retail sales?

Researchers asked 180 women to read a hypothetical shopping experience where they entered a luxury store (for example, Louis Vuitton, Gucci, Burberry) and ask a salesperson for directions to the items they seek. For half the women, the salesperson was condescending while doing this. The other half were directed in a neutral manner. After reading the experience, participants were asked various questions, including what price they were willing to pay (in dollars) for a particular product from the brand.37 Here is a summary of the results.

Chain n ˉx s
Condescending 90 4.44 3.98
Neutral 90 3.95 2.88

Were the participants who were treated rudely willing to pay more for the product? Analyze the data, and write a report summarizing your work. Be sure to include details regarding the statistical methods you used, your assumptions, and your conclusions.

7.109

H0:μC=μN.Ha:μC>μN.t=0.95.df=89.0.15<P-value<0.20. There is no significant evidence that those treated rudely were willing to pay more. This is a two-sample one-sided significance test; we assumed the data were randomly selected and that the data contain no outliers.

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