What is Hypothesis Testing in Marketing Research? MBA Marketing study material.

Marketing research process involves collecting of information through a questionnaire from a selected sample size and measuring this data by various techniques to record it systematically for further study. Now before heading forward let’s look into the most important topic that is Hypothesis. Hypothesis testing in marketing research helps to give a direction towards the study by making and testing an uncertain statements. It is a process of getting direction through the predictions.

What is Hypothesis Testing?

Hypothesis testing is a process of making an assumption or predictions of an uncertain events or statements to study the relationship between two or more variables and test it whether the assumptions are specific and correct to achieve the purpose of research. Benefits of hypothesis testing are:

·         Clear the purpose of research.

·         Gives the direction to re-analyse and rethink towards the research efforts.

·         It stats the relationship between two or more variables which are considered in research.

·         Gives opportunity to different industries to have debates.

How to write a Hypothesis?

Writing a hypothesis is very important and complex procedure. It is very vital to consider the relationship between two variables while writing a hypothesis. Let’s consider the below example:

“Girls and boys have different grades in school.”

In above statement, there is no existence of generic relationship between variables.

“Girls have more grades than boys in school”

This statements shows some measurable values that girls have “more” grades than boys. It gives you the clear direction towards the research as:

Why the girls have more grades than boys in school?

After getting a direction toward a research, let’s write a hypothesis by assuming some uncertain facts about previous statements:

“Girls have more grades than boys because girls are more attentive than boys in school.”

Now researcher have to test the above hypothesis to make sure whether it is correct or not.

How to test a Hypothesis?

There are two types of testing a hypothesis:

1.      Null Hypothesis (H₀):

Null hypothesis is the statement to believe as correct throughout the research. Null hypothesis is assumed to be true unless it has some proof to reject it. It is subjective by random cause. It is statement of equality. Null hypothesis represent as “H₀”. Let’s look an example:

“Average fare charges of a car in city is $50”

In this example, Null hypothesis can be indicate as:   H₀ = $50

If the data represent the fare charges is less than or more than $50 then null hypothesis reject the statement. So it comes to second type of hypothesis that is alternative hypothesis.

2.      Alternative Hypothesis(H₁):

The name itself states the alternatives or options for the Null hypothesis. Alternative hypothesis statements shows every possible alternatives other than null. This statement influenced by non-random cause. It accept all expect null statement. Alternative hypothesis represent as “H₁” or “H_a”. If we consider the above example:

“Average fare charges of a car in city is $50”

In this case, Alternative Hypothesis can be indicate as:  H₁ < $50; H₁ > $50 but H₁≠ $50

Both the Null Hypothesis and alternative hypothesis should be considered and stated in research before collection a data. It gives you desire and expected conclusion of marketing research.

Hope this blog helps to clear your idea about Hypothesis Testing.