What is the average effect of advertising the product

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Reference no: EM132700238

Most supermarkets use scanners at the checkout counters. The data collected this way can be used to evaluate the effect of price and store's promotional activities on the sales of any product. The promotions at a store change weekly, and are mainly of two types: flyers distributed outside the store and through newspapers (which may or may not include that particular product), and instore displays at the end of an aisle that call the customers' attention to the product. Weekly data was collected on a particular beverage brand, including sales (in number of units), price (in dollars), flyer (1 if product appeared that week, 0 if it didn't) and display (1 if a special display of the product was used that week, 0 if it wasn't).
Predictor Coef Stdev t-ratio p Constant 3829.5 700.4 5.47 0.000 price -5056 1026 -4.93 0.000 price2 1667.7 369.9 4.51 0.000 flyer 804.12 86.75 9.27 0.000 display -31.49 53.38 -0.59 0.558 s = 162.8 R-sq = 92.3% R-sq(adj) = 91.7%

Analysis of Variance SOURCE DF SS MS F p

Regression 4 18373664 4593416 173.21 0.000

Error 58 1538137 26520

Total 62 19911802

Use the output above and answer the questions that follow.

Problem a. According to this model, what is the average effect of advertising the product on the weekly flyer, after adjusting for price and display?

Problem b. According to this model, is average effect of promoting the product with an in-store display, significant or not at 5 % level? Justify.

Problem c. What can you say about price and price squared in this model? (1 mark) d. Should anything be done to improve this model?

Problem d. What can you say about price and price squared in this model?

Problem e. Should anything be done to improve this model?

Reference no: EM132700238

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