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Shopping and bargaining in Mexico. Price haggling and other bargaining behaviors among consumers have been observed for a long time. However, research addressing these behaviors, especially in a real-life setting, remains relatively sparse. A group of researchers performed a small study to determine whether gender or nationality of the bargainer has an effect in the final price obtained. The study took place in Mexico because of the prevalence of price haggling in informal markets. Salespersons working at various informal shops were approached by one of three bargainers looking for a specific product. After an initial price was stated by the vendor, bargaining took place. The response was the difference between the initial and the final price of the product. The bargainers were a Spanish-speaking Hispanic male, a Spanishspeaking Hispanic female, and an Anglo nonSpanish-speaking male. The following table summarizes the results:
Bargainer
n
Average reduction
Hispanic male
40
1.055
Anglo male
1.050
Hispanic female
2.310
(a) To compare the mean reductions in price, what are the degrees of freedom for the ANOVA F statistic?
(b) The reported test statistic is F = 8.708. Give an approximate (from a table) or exact (from software) P-value. What do you conclude?
(c) To what extent do you think the results of this study can be generalized? Give reasons for your answer.
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