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A production firm performed an evaluation on the customer perceptions on performance of the firm using a Linkert scale with variables X = Competitive
A production firm performed an evaluation on the customer perceptions on performance of the firm using a Linkert scale with variables X = Competitive pricing and X3 = Price flexibility. Each customer's perceptions on the perfomance of the firm were measured on a graphic rating scale, where a 10-centimeter line was drawn between the endpoints, labelled "Poor" and "Excellent,". As part of the survey, customers indicated their perceptions by making a mark anywhere on the line. The location of the mark was electronically observed and the distance from 0 (in centimetres) was recorded. The result was a scale ranging from 0 to 10, rounded to a single decimal place. Below is the logistic regression analysis output for predicting the customer location (X = Area [0:1]) in response to perceptions on performance of the firm. The area is 0 for Johannesburg and 1 for Pretoria. Table I -Log Likelihood Table II Test Likelihood Ratio Score Wald Table III Statistical Measures of overall Model Fit improvement Step 1: X entered Step 2 (Final Model): X3 entered Model Fit improvement: Reduction in -2 Log Likelihood (Base Model -2LL 82.108) Reduction in Reduction in - Pseudo R Measure Cox and Snell R Nagelkerke R Pseudo R2 i. ii. iii. iv. -2LL 25.136 V. chi- Square 25.1363 21.3297 15.471 Testing the Global null Hypothesis chi- Square Significance .342 .459 .306 Independent Variable B X Competitive Pricing X3 Price Flexibility Constant .000 Pr> DF chiSq 2LL 17.011 1 < .0001 1
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