Comparing Averages of Two or More Groups
As we describe in this blog, most statistics are about uncovering the reasons behind differences or variations among individuals, groups, events and the like. Analysis of Variance (ANOVA) is one of the most common methods of analyzing the sources of variability – hence its name. Similar to an Independent Samples T-Test, it checks if differences in averages are real or simply due to chance. Unlike T-Tests, you can compare more than two groups (comparing two groups will give the same result as you would get with a T-test).
Example
For example, if we wish to explore whether buyers in different industries tend to engage in a similar number of interactions with potential vendors, we can conduct an ANOVA to analyze buyer-to-seller interactions by industry.
In our own B2B Buying Experience research, we surveyed buyers from six industries and studied their interactions with sellers. The result of our ANOVA told us that there is indeed a statistically reliable difference in the number of interactions buyers have with sellers across industries. To determine which specific industries differ, we proceed with post-hoc analysis.
The difference between industries is a between subjects effect.
