XR16-23 There is a bewildering number of breakfast cereals on the market. Each company in this…

XR16-23 There is a bewildering number of
breakfast cereals on the market. Each company in this industry produces several
different products in the belief that there are distinct markets. For example,
a market composed primarily of children, another for diet-conscious
adults, and another for health-conscious adults. Each cereal the companies
produce has at least one market as its target. However, consumers make their
own decisions, which may or may not match the target predicted by the cereal
maker. In an attempt to distinguish between consumers, a survey of adults
between the ages of 25
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XR16-23 There is a bewildering number of
breakfast cereals on the market. Each company in this industry produces several
different products in the belief that there are distinct markets. For example,
a market composed primarily of children, another for diet-conscious
adults, and another for health-conscious adults. Each cereal the companies
produce has at least one market as its target. However, consumers make their
own decisions, which may or may not match the target predicted by the cereal
maker. In an attempt to distinguish between consumers, a survey of adults
between the ages of 25 and 65 was undertaken. Each was asked several questions,
including age, income and years of education, as well as which brand of cereal
they consumed most frequently. The cereal choices were

1 Froot Loops, a children’s cereal

2 Special K, a cereal aimed at dieters

3 Fibre Plus, a cereal that is designed and
advertised as healthy

4 Nutrigrain, a combination of healthy and
tasty. The results of the survey are recorded using the following format:

Column 1: Cereal choice

Column 2: Age of respondent

Column 3: Annual household income
(in ’000s)

Column 4: Years of education.

a Determine whether there are differences
between the ages of the consumers of the four cereals.

b Determine whether there are differences
between the incomes of the consumers of the four cereals.

c Determine whether there are differences
between the educational levels of the consumers of the four cereals.

d Summarise your findings in parts (a) to
(c) and prepare a report describing the differences between the four groups of
cereal consumers.

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