HYPOTHESES OF EQUIVALENCE AND THEIR TESTING

Hypothesis of no difference are null hypotheses for studies to show that populations differ. To show that populations are essentially the same, the appropriate null is that substantial differences do exist. We propose that there is a pent-up conceptual need for equivalence hypothesizing in all of marketing—e.g, for the testing of core marketing concepts including the marketing concept, optimization of the marketing mix, product differentiation, market segmentation, the building of brand loyalty, product positioning, test marketing, as well as marketing pedagogy. We present two statistical tests appropriate for Equivalence Hypothesis Testing (EHT). Usefulness of the method to marketing is discussed.