Analyzing A/B Testing Data

A fast-food chain plans to add a new item to its menu. However, they are still undecided between three possible marketing campaigns for promoting the new product. In order to determine which promotion has the greatest effect on sales, the new item is introduced at locations in several randomly selected markets. A different promotion is used at each location, and the weekly sales of the new item are recorded for the first four weeks.

Evaluate A/B testing results and decide which marketing strategy works the best..

Data Source: https://www.kaggle.com/datasets/chebotinaa/fast-food-marketing-campaign-ab-test

● Found that promotion 1 and large market were the most effective at increasing sales

○However, this could be biased considering market size is broken down by sales and not income or population size

● The week a promotion ran did not have an effect of the total sales made by that specific promotion

● Based on the interactions between market size and promotions we concluded that promotion 1 seems to be the most effective at increasing sales

○ However, market has no significant effect

● Recommendation:

○ Run and market promotion 1 the same way in all markets because they all respond equally

○ No need to spend money making different marketing campaigns for each market (less cost)