Analysis of Shoe Prices in Asian Market

ANALYSIS OF SHOE PRICES IN ASIAN MARKET
Name
Course
Date

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1. Executive Summary
The study aims at analyzing the Asian Shoe market to provide an insight for the Australian
shoe company planning to venture into the market. The data was organized in terms of gender
and country of production. Descriptive statistics, two sample t-test, one-way ANOVA and
linear regression were used in the analysis. The results show that there is difference in price
for shoes from the three countries. Also, cost is a major factor in pricing of shoes in the
market. Therefore, the Australian company should minimize the cost and check the expected
competition from the low-priced shoes from China and Singapore.

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2. Table of Contents
1. Executive Summary............................................................................................. 1
2. Table of Contents................................................................................................ 2
3. Business Problem................................................................................................ 3
4. Statistical Problem.............................................................................................. 3
5. Analysis............................................................................................................. 3
5.1. Part 1......................................................................................................... 3
5.1.1. Descriptive Statistic for Price Based on Gender............................................3
5.1.2. Descriptive Statistic for Price Based on Country of Production........................5
5.2. Part 2......................................................................................................... 6
5.2.1. Two Sample T-test for Price Based on Gender..............................................6
5.2.2. Test of Mean Price Difference between Countries of Production......................7
5.2.3. Scatter Plot for Price Against Cost.............................................................8
5.2.4. Simple Linear Regression for Price and Cost data.........................................8
6. General Conclusion........................................................................................... 10
7. Bibliography..................................................................................................... 11
8. Appendix.......................................................................................................... 12
3. Business Problem

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To identify the business gap in the Asian shoe market based on price, gender, cost and
country of production.
4. Statistical Problem
To use two-sample t-test, and one-way ANOVA to establish difference in the average
price for gender and country of production. Regression analysis to establish relationship
between cost and price of shoes.
5. Analysis
5.1. Part 1
The section presents the answers to descriptive statistics and boxplots for the price data.
5.1.1. Descriptive Statistic for Price Based on Gender
The analysis was performed in Excel software and only the relevant outputs are
presented in tables and figures.1 Table 1 shows the output for the descriptive statistics for
price based on gender.
The data contained at least five mode prices, but only the smallest four are shown in
table 1. The average price of women shoe’s is $118.30 less than that of men at $127.90. The
average distance between the prices of female shoe’s and the mean is $64.14 implying the
prices are spread out over a large range of prices. Similarly, the standard deviation for the
price of male shoes is $62.69 indicating a large range of prices.1 Therefore, the prices of
shoes vary over a wide range of prices for both females and males. The wide range is
supported by the large values of coefficient of variation. For females 54.22% of the prices are
close to the average price while for males 49.01% of the prices are close to the average price.
The median price of female shoes is equivalent to the average price an indication that
there are no extreme prices. However, the median for prices of male shoe’s is slightly higher
than the average an indication that the male shoe prices are characterized by extreme prices.
The mode presents the most frequent prices of the shoes, for females the most frequent prices
1 Grant, Aneurin, Robert Ries, and Carla Thompson. "Quantitative approaches in life cycle assessment
—part 1—descriptive statistics and factor analysis." The International Journal of Life Cycle Assessment 21, no.
6 (2016): 903-911.