[See Solution] Factors that impact a customer's willingness to buy. Advancements in information technology have yielded services that compete against products,
Question: Factors that impact a customer's willingness to buy. Advancements in information technology have yielded services that compete against products, with each providing roughly the same benefits to the consumer (e.g., home answering machines and voice-mail services). With the advent of such services, consumers also face different types of pricing schemes. Using a $2 \times 2$ factorial design, D. Fortin and T. Greenlee of the University of Rhode Island investigated the effects of the type of message retrieval system (answering machine vs. voice-mail service) and the type of pricing (lump sum amount for 5 years of use vs. monthly cost for 5 years of use) on consumers' willingness to buy (Journal of Business Research, Vol. 41,1998 ). The first pricing option re- quires the consumer to do mental arithmetic to determine the total cost of the system; the second provides the true full cost. Thirty subjects were randomly assigned to each of the four treatments. Each was exposed to a purchase situation involving the relevant product or service and payment description and was asked to indicate his or her willingness to buy the item on a 5-point scale (1 = definitely would not buy; 5 = definitely would buy). The results are presented in the incomplete ANOVA table on the next page.
- Fill in the degrees of freedom (df) column in the ANOVA table.
- Specify the null and alternative hypotheses that should be used in testing for interaction effects between type of message retrieval system and pricing option.
- Conduct the test of part b using \(\alpha=.05\). Interpret the results in the context of the problem.
- Given the results of part c, is it advisable to conduct main effects tests? Why or why not? If so, perform the appropriate main effects tests using \(\alpha=.05\).
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