A marketing manager is studying the relationship between the
sales and various marketing expenditures to determine the most
successful techniques in the company’s marketing mix. Analysis of
the data produced the following multivariate regression output (in
thousands $$):
|
Unstandardized coefficients |
|||
|
B |
St. Error |
Sig. |
|
|
(Constant) |
800.2 |
108.633 |
0.415 |
|
TV advertising expenditures |
0.22 |
0.996 |
0.000 |
|
Print advertising expenditures |
-0.15 |
9.828 |
0.000 |
|
Promotional expenditures |
2.7 |
3.609 |
0.001 |
|
Social media marketing expenditures |
0.17 |
0.554 |
0.031 |
R²=0.61
1. Write down the regression equation. What seems to be the
effect of each independent variable on the dependent variable?
Based on this analysis, what is the most successful technique in
the company’s marketing mix? How much will $1 increase in
expenditures for this technique affect sales?
2. How strong is the relationship between the variables? What is
the explanatory power of the model? How can you interpret this?
