Consumer Behavior Research Methods

Inferential Statistics

Significant vs. Substantive

  • A significant difference or correlation is not necessarily

    substantive or relevant.

  • Significance depends on:

    • Magnitude (strength) of the difference or correlation

    • Sample size (in a large sample, a tiny difference can be significant)

  • Tests of significance are only a first step

  • Given significance, judge the relevance by looking at the magnitude of the difference or correlation

  • Relevance is a subjective judgment

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