Question
A supermarket chain wants to determine the effect of promotion on relative competitiveness. Data were obtained from 15 cities on the promotional expenses relative to
A supermarket chain wants to determine the effect of promotion on relative competitiveness. Data were obtained from 15 cities on the promotional expenses relative to a major competitor (competitor expenses = 100) and on sales relative to this competitor (competitor sales = 100).
City number
Relative promotional expense
Relative sales
1
95
98
2
92
94
3
103
110
4
115
125
5
77
82
6
79
84
7
105
112
8
94
99
9
85
93
10
101
107
11
106
114
12
120
132
13
118
129
14
75
79
15
99
105
You are assigned the task of telling the manager whether there is any relationship between relative promotional expense and relative sales.
A.Plot the relative sales (Y axis) against the relative promotional expense(X axis), and interpret the diagram.
B.\Which measure would you use to determine whether there is a relationship between the two variables? Why?
C.Run a bivariate regression analysis of relative sales on relative promotional expense.
D.Interpret the regression coefficients.
E.Is the regression relationship significant?
F.If the company matched the competitor in terms of promotional expense (if the relative expense was 100), what would the company's relative sales be?
G.Interpret the resulting r2.
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Contemporary Marketing
Authors: Louis E Boone, David L Kurtz
14th Edition
032458203X, 978-0324582031
