Is someone who switches brands because of a financial inducement less likely to remain loyal than someone who switches without inducement? Let p1 and p2 denote the true proportions of switchers to a certain brand with and without inducement, respectively, who subsequently make a repeat purchase. Test H0 : p1 – p2= 0 versus Ha : p1 – p2= 0
using α = .01 and the following data:
(Similar data is given in “Impact of Deals and Deal Retraction on Brand Switching,” J. of Marketing, 1980: 62–70.)
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