ANCOVA is a blend of ANOVA (analysis of variance) and regression. It is the same as ANOVA, but the difference is that it estimates coalition between independent variables. It is used to determine the differences in the mean values of three or more independent groups while taking into account the influence of the uncontrolled independent variables. To cheque uniformity invariance/regression slopes, ANCOVA heavily uses assumption testing.
It is used widely in businesses to determine the variation in the intention of customers buying a particular brand rather than of another, concerning different levels of price and the consumer’s attitude towards that brand.
It also shows the stats about how a little change in the price level of a particular commodity will affect the consumption of that commodity by the consumers. ANCOVA consists of a minimum of one categorical independent variable and one interval natured independent variable. The categorical independent variable is known as a factor while the interval natured independent variable is termed as a covariate. The independent variable covariate helps in removing the extraneous variation from the dependant variable. This analysis is done while the independent variable has a powerful correlation analysis with the dependant variable. It is majorly applied in those cases where the balanced independent variable is measured on a continuous scale.
We at SPSS tutor helps the researcher to determine the effect of in-store promotion on sales revenue. For this, the appropriate technique of ANCOVA is used, where the dependant variable will be the sales revenue of the store and the independent variable will be the attitude of the consumer.