Chapter: Two-Way ANOVA

Topics to be covered:

Data Requirements for Conducting Two-Way ANOVA

Two-Way ANOVA: A Marketing Example
Decomposition of Total Variation: A Comparison between One-Way and Two-Way ANOVA
Hypotheses to be tested in Two-Way ANOVA
Problem: Two-Way ANOVA
Solution: Two-Way ANOVA

# Data Requirements for Conducting Two-Way ANOVA

No-Metric Independent
Variable (Factor-A)
Metric Dependent Variable
Non-Metric Independent
Variable (Factor-B)

# Two-Way ANOVA: A Marketing Example

Tommy Hilfiger Clothing has collected data from 45 respondents in terms of the following three
dimensions:
Usage: Light User (1), Medium User (2), and Heavy User (3)
Gender: Female (1) and Male (2)
Attitude toward Tommy Hilfiger Clothing: Measured by 7-point Likert Scale (1 = Very
Unfavorable, 7 = Very Favorable

Problem: Now the Chief Marketing Officer of Tommy Hilfiger Clothing is interested to know if
Gender and Usage may affect the attitude toward Tommy Hilfiger Clothing. What will be
appropriate statistical analysis here?

Solutions: Now the given variables can be summarized below:

Gender
Attitude

Usage

Since we have two non-metric independent variables (two factors: Gender and Usage), and a
metric dependent variable (attitude toward Tommy Hilfiger Clothing), two-way ANOVA will be
appropriate statistical method here.

1|Page
 # Decomposition of Total Variation:
A Comparison between One-Way and Two-Way ANOVA

A comparison of decomposition of total variation between One-Way ANOVA and Two-Way

ANOVA can be presented in the table below:

One-Way ANOVA Two-Way ANOVA

SSy = SSx + SSerror SSy = SSx1 +SSx2 + SSx1x2 + SSerror

# Hypotheses to be tested in Two-Way ANOVA

Here the following hypotheses are usually tested in conducting Two-Way ANOVA:

1. Model Hypothesis
2. Interaction Hypothesis
3. Main Affect Hypotheses

Model Hypothesis: Here the following model hypothesis can be developed in conducting Two-
Way ANOVA:
HO: It is not meaningful to conduct the Two-Way ANOVA
H1: It is meaningful to conduct the Two-Way ANOVA

Interaction Hypothesis: Here the following interaction Hypothesis can be developed in

conducting Two-Way ANOVA
HO: There is no interaction between the factors
H1: There is an interaction between the factors

Main Effect Hypotheses: Here the following main effect hypotheses can be developed in
conducting Two-Way ANOVA:

Factor-A Factor-B
HO: μ1 = μ2 = μ3 = … = μC HO: μ1 = μ2 = μ3 = … = μC
H1: μ1 ≠ μ2≠ μ3≠ … ≠ μC H1: μ1 ≠ μ2≠ μ3≠ … ≠ μC

# Problem: Two-Way ANOVA

Tommy Hilfiger Clothing has collected data from 45 respondents in terms of the following three
dimensions:
Gender: Female (1) and Male (2)
Usage: Light User (1), Medium User (2), and Heavy User (3)
Attitude toward Tommy Hilfiger Clothing: Measured by 7-point Likert Scale (1 = Very
Unfavorable, 7 = Very Favorable). Now the Chief Marketing Officer of Tommy Hilfiger Clothing is

2|Page
interested to know if Gender and Usage may affect the attitude toward Tommy Hilfiger
Clothing. The statistical output generated by SPSS is shown in the table given below:
Dependent Variable: Attitude Toward Tommy Hilfiger
Source Sum of Squares df Mean Square F Sig.
a
Corrected Model 118.600 5 23.720 25.155 .000
Intercept 744.568 1 744.568 789.614 .000
Usage 114.332 2 57.166 60.624 .000
Gender .841 1 .841 .892 .351
Usage * Gender 3.427 2 1.714 1.817 .176
Error 35.832 38 .943
Total 899.000 44
Corrected Total 154.432 43
a. R Squared = .768 (Adjusted R Squared = .737)
b. One missing value

1. Explain which statistical analysis will be appropriate here.

2. Test the associated hypotheses.
3. Calculate and interpret the multiple η2 value.
4. Calculate and interpret the multiple ω2 value for each of the factor.

Solution (1)

Since we have two non-metric independent variables (two factors: Gender and Usage), and a
metric dependent variable (attitude toward Tommy Hilfiger Clothing), two-way ANOVA will be
appropriate statistical method here.

Solution (2)

Now the following hypotheses will be conducted here:

Model Hypothesis
Interaction Hypothesis
Main Effect Hypotheses

Model Hypothesis: Here the following model hypothesis can be developed in conducting Two-
Way ANOVA:
HO: It is not meaningful to conduct Two-Way ANOVA
H1: It is meaningful to conduct Two-Way ANOVA

Here FModel = 25.155

Sig. = .000
Assumed α = .05
Since Sig. = .000 is less than the assumed α = .05, null hypothesis will be rejected here. Now it
can be concluded that it is meaningful to conduct the Two-Way ANOVA here.

3|Page
Interaction Hypothesis: Here the following interaction Hypothesis can be developed in
conducting Two-Way ANOVA
HO: There is no interaction between the factors
H1: There is an interaction between the factors
Here FInteraction = 1.817
Sig. = .176
Assumed α = .05
Since Sig. = .176 is not less than the assumed value of α = .05, null hypothesis cannot be
rejected here. Now it can be concluded that there no interaction between the two factors
(Usage and Gender).

Main Effect Hypotheses: Here the following main effect hypotheses can be developed and
tested in conducting Two-Way ANOVA:

Usage (Factor-A) Gender (Factor-B)

HO: μ1 = μ2 = μ3 = … = μC HO: μ1 = μ2 = μ3 = … = μC
H1: μ1 ≠ μ2≠ μ3≠ … ≠ μC H1: μ1 ≠ μ2≠ μ3≠ … ≠ μC
Here FUsage = 60.624 Here FGender = .892
Sig. = .000 Sig. = .351
Assumed α = .05 Assumed α = .05
Since Sig. = .000 is less than the assumed value Since Sig. = .351 is not less than the assumed
of α = .05, null hypothesis will be rejected value of α = .05, null hypothesis cannot be
here. rejected here.
Now it can be statistically concluded that Now it can be statistically concluded that
Usage affects the attitude toward Tommy Gender does not affect the attitude toward
Hilfiger Clothing. Tommy Hilfiger Clothing.

Solution (3)

Now the multiple η2 value can be calculated by using the following formula:

Now

Solution (4)
Now the ω2 value will indicate the relative contribution of each factor. For the factor x, the ω2
value will be given by—

4|Page
Now

Since the main effect null hypothesis related to Gender cannot be rejected, our conclusion was
that Gender does not affect the attitude toward Tommy Hilfiger. Therefore the ω2 value for this
factor is of no significance to the researcher.

5|Page