It is imperative to adopt several methods simultaneously to achieve the same end goal. However, ultimately, we have to decide which of these methods gave us the bang for the buck.
Suppose a digital marketer has to identify the best promotion method amongst Google Ads, SMM, and YouTube for clients. They could run campaigns on all these channels for certain days. They track responses in three categories - Buy, Like, and Dislike.
Buy Like Dislike
Google Ads 200 150 50
SMM 80 120 70
YouTube 220 130 20
The Agency can perform a chi-square test to analyze the association between the chosen channel and the responses.
Let's say the chi-square test results in the following p-values:
Google Ads vs. SMM: p = 0.03
Google Ads vs. YouTube: p = 0.001
SMM vs. YouTube: p = 0.05
The p-values for Google Ads vs. SMM and Google Ads vs. YouTube are less than the significance level of 0.05. This indicates a significant association between the promotional methods and the level of audience interest. I remember a rule I learned in college - if the p is low (<0.05), the ho (the null hypothesis) must go.
Based on the results, the digital agency can conclude that the promotional method with the lowest p-value i.e. YouTube is the most effective in generating audience interest.
The chi-square test can be conducted using a simple tool like Excel. Let's make the decisions based on data.
Subodh
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