Question

Discuss the applications of ANOVA (One-Way ANOVA, Two-Way ANOVA) and regression techniques in the context of e-commerce firms like Amazon, Flipkart etc.

Answer 1

Marketers can use the ANOVA testing method to understand if a statistical significance exists within or between groups. Landing page optimization is a good example of how ANOVA testing can used to analyse a customer's response to different treatments based on variables of intrest.

For example, suppose you are testing landing pages and you want to determine if the income of new and return customers has any statistical significance on the probability of conversation on the landing pages you are testing. Then ANOVA would be optimal test method to consider using.

Regression Analysis is a statistical process for estimating tge relationship among variables. This is what exactly we are looking for.

We will use python and stat models library to build a model to predict the number of transactions based on the number of sessions. The outcome of the model can be represented as a straight line( linear regression)