Foster's Beer: Marketing Research Report and Reliability Analysis

This report presents a marketing research analysis focusing on consumer perceptions of Foster's beer. The research employs survey data to assess various aspects, including celebrity endorsements, repurchase likelihood, logo attractiveness, alcohol percentage, calorie count, taste, availability, offers and discounts, marketing and advertising, pricing, satisfaction, and variety of beer. Reliability analysis, primarily using Cronbach's alpha, is conducted to evaluate the consistency and internal validity of the survey items. The report highlights the reliability of different variables, identifies items that may be removed to improve reliability, and discusses the implications of the findings for Foster's beer's marketing strategies. The analysis reveals insights into consumer attitudes, brand perception, and areas for potential improvement in Foster's marketing efforts. The report provides detailed statistical results for each variable, including Cronbach's alpha values and item-total statistics, and offers interpretations of the findings.

Running head: MARKETING RESEARCH
Marketing Research
Name of Student:
Name of University:
Author’s Note:

1MARKETING RESEARCH
Table of Contents
Reliability analysis...........................................................................................................................2
Correlation Analysis......................................................................................................................15
Regression Analysis.......................................................................................................................19
Summary........................................................................................................................................24

2MARKETING RESEARCH
Reliability analysis
In social research survey’s are conducted to get responses from prospective clients. The
responses of the clients are analysed and interpreted. In reliability analysis studies are done to
check how well a group of items are correlated with other. The study of the inter-relation
between different items in a group is a measure of reliability. The Cronbach’s alpha test is done
to measure reliability. In the test for Reliability, the results are checked for Cronbach’s alpha and
Cronbach’s alpha if item deleted. The Cronbach’s alpha provides a measure of the reliability of
the items. The Cronbach’s alpha if item deleted provides the Cronbach’s alpha if the specific
item is deleted. In the condition that any of the values of Cronbach’s alpha if item deleted is
higher than Cronbach’s alpha then it is deduced that the reliability of the item is poor as
compared to other items in the group. Thus the item should be deleted and a better Cronbach’s
alpha generated.
In the present research a survey was done to get the opinion of the people for Foster’s
Beer.
Question 10: Extent of use of celebrity endorsement
Reliability Statistics
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized
Items N of Items
.936 .937 3

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Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
I have seen many celebrity
endorsements for Foster's
beer
6.1200 14.410 .823 .728 .944
A lot of celebrities have
endorsed Foster's beer
6.2100 14.228 .934 .876 .858
Many ad campaigns of
Foster's involve renowned
celebrities
6.2100 14.329 .853 .801 .920
The Cronbach’s alpha for the variable “Extent of use of celebrity endorsement” is 0.936.
Hence, from the Cronbach’s alpha it is found that the Variable is highly reliable. The Cronbach’s
alpha for the variable is for three items. The Cronbach’s alpha for the item “I have seen many
celebrity endorsements for Foster's beer” is higher than the Cronbach’s alpha (0.944). Hence, the
item should be rejected to get a better reliability of the variable.
Question 11: Likelihood of re-purchase
Reliability Statistics
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized
Items N of Items
.915 .915 3

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Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
I would definitely purchase a
pint/can of Foster's beer in
the future
7.6000 16.869 .751 .565 .940
I'm sure I'm going to be a
regular buyer of Foster's beer
8.0800 15.872 .866 .800 .849
I will continue purchasing
Foster's on a regular basis
7.9200 14.822 .876 .810 .839
The Cronbach’s alpha for the variable “Likelihood of re-purchase” is 0.915. Thus, from
the Cronbach’s alpha it is found that the Variable is highly reliable. The Cronbach’s alpha for the
variable is for three items. The Cronbach’s alpha for the item “I would definitely purchase a
pint/can of Foster's beer in the future” is higher than the Cronbach’s alpha (0.940). Hence, the
item should be rejected to get a better reliability of the variable.
Question 2: Attractiveness of the logo
We asked the people about their opinion towards the attractiveness of the Logo of
Foster’s Beer. Three questions were asked to investigate the attractiveness of the Logo.

5MARKETING RESEARCH
Reliability Statistics
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized
Items N of Items
.910 .910 3
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
I find the logo of Foster's to
be attractive
8.3000 16.636 .798 .714 .888
The logo of Foster's beer is
really appealing
8.2000 14.889 .900 .814 .800
I am fascinated by Foster's
logo
8.4800 16.656 .764 .638 .916
The Cronbach’s alpha for Attractiveness of Logo is 0.910. However, the table on
Item-total statistics shows that the Cronbach’s alpha if item deleted for the item “I am
fascinated by Foster's logo” is 0.916. Hence the item “I am fascinated by Foster's logo”
when deleted will give a better reliability.

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Question 6: Alcohol percentage
The opinion of the people towards Alcohol percentage in Foster’s Beer was assessed
through three questions.
Reliability Statistics
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized
Items N of Items
.181 .216 3
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
The alcohol strength in a
Foster's pint/can is very high
7.5657 6.514 .374 .442 -.620a
In my opinion, the alcohol
content of Foster's is
extremely high
7.6667 6.857 .300 .457 -.422a
q6b 6.6263 12.910 -.226 .057 .798
The reliability analysis of Alcohol percentage is 0.181. Thus the reliability of the
response towards Alcohol percentage is poor. In addition, in the item-total statistics it is seen that
the “Cronbach’s alpha if item deleted” for two of the items is negative. This generally happens

7MARKETING RESEARCH
when the covariance between the items is negative. Moreover, it may happen if the items are
scaled wrongly. Since, the responses to the responses were in Likert Scale, hence it would be
better to check the scaling of the group of questions in “Alcohol Percentage.”
Question 9: Calorie count in a pint/can
Reliability Statistics
Cronbach's
Alphaa
Cronbach's
Alpha Based on
Standardized
Itemsa N of Items
-.006 -.230 3
a. The value is negative due to a negative average
covariance among items. This violates reliability
model assumptions. You may want to check item
codings.
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
The calorie count in a
Foster's beer is extremely
high
8.8687 23.360 .035 .163 -.065a
I think that there are a lot of
calories in Foster's beer
8.1818 5.028 .135 .041 -1.115a
q9c 9.2929 27.148 -.168 .129 .255

8MARKETING RESEARCH
a. The value is negative due to a negative average covariance among items. This violates reliability model assumptions.
You may want to check item codings.
For the survey on “Calorie count in a pint/can” it is seen that the Cronbach’s alpha is
negative (-0.006). The value of Cronbach’s alpha is negative due to negative covariance amongst
the items. It is probable that the items were coded wrongly.
Question 5: Taste
Reliability Statistics
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized
Items N of Items
.930 .930 3
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
I really like the taste of
Foster's
8.2600 14.821 .832 .692 .918
I find the taste of this brand
of beer extremely good
8.5100 15.202 .866 .758 .891
Foster's beer tastes very
good
8.4100 14.426 .871 .764 .886

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The Cronbach’s alpha for the item “Taste” is 0.930. Moreover, the Cronbach’s alpha if
item deleted for the items is below 0.930. Thus the items in “Taste” is highly reliable.
Question 7: Availability of Foster’s beer
Reliability Statistics
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized
Items N of Items
.926 .926 3
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
At any given day, I can easily
find Foster's in stock at
almost all stores
7.5102 16.747 .859 .743 .885
A pint or a can of Foster's
can be found effortlessly in
many stores
7.7041 17.778 .861 .745 .883
In my opinion, Foster's beer
is easily available in any
store
7.4796 17.737 .827 .685 .910
The reliability analysis for Availability of Foster’s Beer shows that the Cronbach’s alpha
for the three items is 0.926. Moreover, the Cronbach’s alpha if item deleted for the three items

10MARKETING RESEARCH
are 0.885, 0.883 and 0.910. Since the value of the Cronbach’s alpha for the three items is higher
than the values of “Cronbach’s alpha if item deleted” hence the response to Availability of
Foster’s Beer is highly reliable.
Question 4: Frequency of offers and discounts
Reliability Statistics
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized
Items N of Items
.916 .916 3
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
I always come across
discounts on Foster's beer
6.3838 15.382 .853 .742 .861
Foster's beer is available on
discounts extremely often
6.4242 14.879 .852 .742 .861
I always find Foster's pint/can
sold on discounts
6.5051 15.620 .788 .621 .914

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The Cronbach’s alpha for the item “Frequency of offers and discounts” is 0.916. Thus the
Cronbach’s alpha for the item “Frequency of offers and discounts” is highly reliable. In addition,
the Cronbach’s alpha if item deleted for the group is below the Cronbach’s alpha. Hence the item
“Frequency of offers and discounts” is reliable.
Question 1: Extent of marketing and advertising
Reliability Statistics
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized
Items N of Items
.912 .913 3
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Squared Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
I always come across
Foster's advertisements
6.6200 15.389 .819 .697 .880
I always see Foster's
advertisements
6.6400 13.566 .869 .760 .836
I am always exposed to
Foster's advertisements
6.8000 14.889 .788 .632 .904