Method of Estimating Population Mean

Subject: Marketing
Pages: 2
Words: 543
Reading time:
3 min
Study level: College

Issue or Problem

Consumer satisfaction has a significant role in any business because it gives business owners and organizations a metric through which they can employ to improve and manage their operations. Having been in operation for more than one hundred and thirty years, and with a differentiated product mix in the market, Nestlé has the challenge of determining whether its brand’s reputation satisfied consumers of Baroda. Based on the issue, the research aimed to examine whether Nestlé’s products could have the right influence to persuade consumers at Baroda to purchase them.

Proposed estimation method

The proposed estimation method is the use of the chi-square estimation approach. The approach is very significant since it serves an essential role in how a researcher can compare experimental results with those expected hypothetically from a theory. By being an accurate divergence measure, the chi-square method of estimation facilitates in a researcher the ability to differentiate between frequencies expected from those observed (Black, 2020). Further, another reason the chi-square would be an appropriate estimation approach is that it allows an investigator to distinguish fact from theory through its potential to differentiate between the observed and expected frequencies.

Should there be a difference between the mentioned frequencies, the chi-square value must be more than zero. That goes to show that when undertaking the research, any acquired value greater than zero will be used to tell the researcher that a high probability chance exists that the result will be accurate. Throughout the investigation, the investigator will therefore be on the lookout. That will be to determine whether the results used in the previous study can be used as a background to show if Nestlé’s consumer satisfaction indeed relied on taste, price, and product quality.

The third reason to use the selected choice of estimation method lies in the advantages it allows the investigator to have while carrying out the study. The chi-square approach facilitates ease of computation and has robustness in how data is distributed. Other advantages of the method are that it is flexible in handling information from multiple and two group studies and its use in research for which parameters are hard to meet (Black, 2020). Furthermore, the depth of information that is derivable from the undertaken test.

How to use the chi-square to address the problem

For example, before any data collection takes place, the researcher will have to establish a new hypothesis associated with consumer satisfaction. After that, work with the idea to find out if, regardless of the approach taken, consumer satisfaction will be the same, based on taste, price, and product quality, in Baroda. Based on the calculated chi-square value, the researcher will be able to compare the importance acquired in the study to those presented by Purvi and Dignesh. Should the matter, in any case, be greater than zero, then the research will prove that indeed consumer satisfaction in Baroda relied on taste, price, and product quality. However, after the calculations, should the chi-square value be less than zero. The company will have to redefine its strategies in the region towards establishing an even stronger brand in Baroda. Further, Nestlé’ will also be called to reconsider how to gain consumer loyalty and conduct more studies to determine its consumer profile in Baroda.


Black, K. (2020). Business Statistics: For Contemporary Decision Making. Hoboken: Wiley.

Purvi, D, & Dignesh, S, P. (2018). Study of consumer satisfaction: A survey of Nestle

products in Baroda City. RESEARCH REVIEW International Journal of Multidisciplinary, 3, 9, 82-85.