ABC Sports is a chain of health clubs operating in State XYZ at five different regions, Region 1, Region 2, Region 3, Region 4 and Region 5. The top management of the company is interested to evaluate the impacts of various factors on their marketing strategy; in particular, this strategy consists of changing the terms of their offer to consumers, every month. These offer terms include several variables: current price, amount of time free on top of one year's membership, and guaranteed renewal price. The firm would also sometimes offer a referral programme, which would reward new members for bringing in other new members within their first month of membership.

In some months the firm would change the offer twice, rather than once; they observed that this seemed to bring in more new members because of the 'deadline effect'. Whenever customers made membership enquiries, they were told thatthe existing offer would be ending soon, and that the new offer would in some way be less favourable; either the price would go up, the amount of time free would be less, or the renewal price would go up.

By using many variables in the offer terms the firm was continuously able to have some 'special' on offer, either a low price, more time free or a low renewal price and to rotate these terms. As the deadline for the end of any offer drew near, the number of buyers increased. Thus, it seemed that having two 'close-outs in some months was a desirable strategy.

The top management of the company has hired you as the chief economist of ABC Sports health club. You are required to analyse the marketing strategies of the company and suggest few recommendations to the top management. Data on sales, price, amount of time free, renewal price, number of offers changesand incomes are obtained from the marketing's departmentand the statistic'sdepartment.Table 1 shows salesfor the five different ABC Sports health clubs in theyears2019 and2020.InTable 2, the values of different variables are shown for the time series data; the values are the same for all health clubs in five regions.

Table 1: Sales at ABC Sports Health Clubs (2019 - 2020)

Sales Region 1 Region 2 Region 3 Region 4 Region 5 Jan 2019 487 365 348 235 311 Feb 419 289 297 229 246 Mac 480 292 307 247 285 April 409 336 375 229 275 May 332 350 291 240 212 June 31 283 284 234 228 July 291 268 346 300 267 Aug 280 313 334 219 228 Sep 389 329 389 208 221 Oct 363 280 285 212 136 Nov 358 278 310 210 205 Dec 2019 408 271 295 214 187 Jan 2020 498 302 439 204 241 Feb 392 201 277 204 233 Mac 155 203 331 321 255 April 340 270 331 289 225 May 350 282 360 264 268 June 325 210 213 233 183 July 388 272 219 178 161 Aug 418 273 215 201 170 Sep 386 220 221 171 219 Oct 358 286 239 161 165 Nov 501 339 237 171 176 Dec 2020 447 336 274 202 201Sales Price ($) Time Free Renewal Number of Offers Income Price Changes Jan 2019 380 3.6 168 2558 Feb 392 9.6 168 1 2583 Mac 371 2.4 168 2602 April 374 3.6 168 2640 May 375 8.4 168 2628 June 364 3.6 168 2649 July 329 3.6 204 2654 Aug 31 3.6 213 2653 Sep 353 3.6 221 2 2652 Oct 386 8.4 180 2652 Nov 386 5.6 180 1 2655 Dec 2019 377 3.6 180 1 2661 Jan 2020 414 9.6 147 1 2656 Feb 424 9.6 166 2687 Mac 388 7.3 180 2680 April 361 3.6 166 2 2603 May 369 3.6 171 2 2676 June 387 7.2 180 2662 July 412 7.2 185 2682 Aug 404 7.2 190 2686 Sep 400 7.2 195 1 2683 Oct 433 7.2 150 2731 Nov 399 5.4 151 2710 Dec 2020 381 3.6 149 1 2745MULTIPLE R XXX RSQUARE XXX STELERROR OF EST. XXX ANALYSIS OF VARIANCE DF Sum Squares Mean gig}; FStat [F- significance Regression XX XXX XXX XXX(XXX] Error XX XXX XXX Total XX XXX Constant XXX XXX XXX Xl XXX XXX XXX X2 XXX XXX XXX X3 XXX XXX XXX Xq- XXX XXX XXX X5 XXX XXX XXX p-Value XXX XXX XXX XXX XXX XXX