Meteno’s products account for 59% of the U.S. snack chip industry, and there are more than 45,000 Meteno employees in North America. In the late 1990s, despite its overall popularity, Meteno faced a general lack of appeal to Hispanics. In an effort to better penetrate that market, Meteno hired various market researchers to determine why Hispanics were not purchasing their products as often as company officials had hoped and what could be done about the problem. In the studies, market researchers discovered that: Hispanics thought Meteno products were too bland, Meteno advertisements were not being widely viewed by Hispanics, and Hispanics tended to purchase snacks in small bags at local grocery stores rather than in the large familystyle bags sold at large supermarkets. Focus groups composed of male teens and male young adults—a group that tends to consume a lot of chips—were formed. The researchers determined that even though many of the teens spoke English at school, they spoke Spanish at home with their 2 family. From this discovery, it was concluded that Spanish advertisements would be needed to reach Hispanics. In addition, the use of Spanish rock music could be effective in some ads. Researchers also found that using a “Happy Face” logo, which is an icon of Meteno’s sister company in Mexico, was effective. Since 63% of all US Hispanics are Mexican American, using the logo could increase product familiarity. As a result of this research, Meteno launched its first Hispanic products in 1997. Within a few of years, sales of the Doritos brand improved 32% in Hispanic areas. In May 2002, Meteno teamed up with its Mexican affiliate, Sabritas, to launch a new line of products to further appeal to Hispanic customers. Included in these offerings are Sabritas Adobadas tomato and chile potato chips, Sabritones Churrumais fried corn strips with chile and lime seasonings, Crujitos queso and chile flavor puffed corn twists, Fritos Sabrositas lime and chile chips, El Isleno Plantains, and others. Use the results of the focus groups and market research to verify how the results might affect marketing decision makers regarding the Hispanic market. More precisely, answer the following questions: 1) It is stated that 63% of all US Hispanics are Mexican American. Suppose that 850 US Hispanics are randomly selected using US Census Bureau information. Assume further that 575 of them state that they are Mexican Americans. Test the 63% percentage with a probability of error of Type 1 equal to 5%. 2) Suppose that in the past, 94% of all Hispanic grocery shoppers were women. Perhaps due to changing cultural values, it is believed that more Hispanic men are now grocery shopping. You randomly sample 689 Hispanic grocery shoppers from around the United States and 606 are women. Does this result provide enough evidence to conclude that a lower proportion of Hispanic grocery shoppers now are women? Conduct the appropriate hypothesis test. Explain and justify all results. 3) What proportion of Hispanics listen primarily to advertisements in Spanish? Suppose one source says that in the past the proportion has been about 0.83.You want to determine whether this figure is true. A random sample of 438 Hispanics is selected. The results of testing this hypothesis are shown below. 3 Test of p=0.83 vs p not =0.83 Number of Hispanics n Sample p 95% CI p-value 347 438 0.792237 (0.751184, 0.829290) 0.042 Discuss and explain this output and the implications of this study using = 0.05. 4) What is the average age of a purchaser of Doritos Salsa Verde? Suppose that the initial tests indicate that the mean age is 31. To test whether this figure is correct, a researcher randomly contacts 24 purchasers of Doritos Salsa Verde. The sample mean is 28.81 and the variance of the sample is 50.2651. Evaluate the results obtained from this sample in terms of a hypothesis test to determine whether the mean age is actually 31. Use a 1% significance level. Assume that the ages of purchasers are normally distributed in the population. Conduct the appropriate hypothesis test. Explain and justify all results.
Meteno’s products account for 59% of the U.S. snack chip industry, and there are
more than 45,000 Meteno employees in North America. In the late 1990s, despite its
overall popularity, Meteno faced a general lack of appeal to Hispanics. In an effort to
better penetrate that market, Meteno hired various market researchers to determine
why Hispanics were not purchasing their products as often as company officials had
hoped and what could be done about the problem. In the studies, market researchers
discovered that: Hispanics thought Meteno products were too bland, Meteno
advertisements were not being widely viewed by Hispanics, and Hispanics tended to
purchase snacks in small bags at local grocery stores rather than in the large familystyle
bags sold at large supermarkets.
Focus groups composed of male teens and male young adults—a group that tends to
consume a lot of chips—were formed. The researchers determined that even though
many of the teens spoke English at school, they spoke Spanish at home with their
2
family. From this discovery, it was concluded that Spanish advertisements would be
needed to reach Hispanics. In addition, the use of Spanish rock music could be
effective in some ads. Researchers also found that using a “Happy Face” logo, which
is an icon of Meteno’s sister company in Mexico, was effective. Since 63% of all US
Hispanics are Mexican American, using the logo could increase product familiarity.
As a result of this research, Meteno launched its first Hispanic products in 1997.
Within a few of years, sales of the Doritos brand improved 32% in Hispanic areas. In
May 2002, Meteno teamed up with its Mexican affiliate, Sabritas, to launch a new line
of products to further appeal to Hispanic customers. Included in these offerings are
Sabritas Adobadas tomato and chile potato chips, Sabritones Churrumais fried corn
strips with chile and lime seasonings, Crujitos queso and chile flavor puffed corn
twists, Fritos Sabrositas lime and chile chips, El Isleno Plantains, and others.
Use the results of the focus groups and market research to verify how the results
might affect marketing decision makers regarding the Hispanic market. More
precisely, answer the following questions:
1) It is stated that 63% of all US Hispanics are Mexican American. Suppose that 850
US Hispanics are randomly selected using US Census Bureau information. Assume
further that 575 of them state that they are Mexican Americans. Test the 63%
percentage with a probability of error of Type 1 equal to 5%.
2) Suppose that in the past, 94% of all Hispanic grocery shoppers were women.
Perhaps due to changing cultural values, it is believed that more Hispanic men are
now grocery shopping. You randomly sample 689 Hispanic grocery shoppers from
around the United States and 606 are women. Does this result provide enough
evidence to conclude that a lower proportion of Hispanic grocery shoppers now are
women? Conduct the appropriate hypothesis test. Explain and justify all results.
3) What proportion of Hispanics listen primarily to advertisements in Spanish?
Suppose one source says that in the past the proportion has been about 0.83.You
want to determine whether this figure is true. A random sample of 438 Hispanics is
selected. The results of testing this hypothesis are shown below.
3
Test of p=0.83
vs p not =0.83
Number of
Hispanics n Sample p 95% CI p-value
347 438 0.792237 (0.751184,
0.829290) 0.042
Discuss and explain this output and the implications of this study using = 0.05.
4) What is the average age of a purchaser of Doritos Salsa Verde? Suppose that the
initial tests indicate that the mean age is 31. To test whether this figure is correct, a
researcher randomly contacts 24 purchasers of Doritos Salsa Verde. The sample
mean is 28.81 and the variance of the sample is 50.2651. Evaluate the results
obtained from this sample in terms of a hypothesis test to determine whether the
mean age is actually 31. Use a 1% significance level. Assume that the ages of
purchasers are
hypothesis test. Explain and justify all results.
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