EBK BUSINESS ANALYTICS
3rd Edition
ISBN: 9780135231906
Author: Evans
Publisher: VST
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 8PE
Four key marketing decision options are price
- How does a change in each variable affect demand?
- How do the variables influence each other?
- What limitations might this model have? Can you think of how this model might be made more realistic?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Four key marketing decision variables are price (p), advertising (a), transportation (t), and product quality (q). Consumer demand (d) is influenced by these variables. The simplest model for describing demand in terms of these variables is d = k - pP+aA+tT+ qQ. Refer to the image
In the grocery industry, managers typically need to know how best to use pricing, coupons, and advertising strategies to influence sales. Grocers often study the relationship of sales volume to these strategies by conducting controlled experiments to identify the relationship between them and sales volumes. That is, they implement different combinations of pricing, coupons, and advertising, observe the sales that result, and use analytics to develop a predictive model of sales as a function of these decision strategies.
Born in 1954, the Sarihusada Generasi Mahardhika Company (Sarihusada) is known as a strong player in the dairy business. SGM offers mother and child products to support their fulfillment of nutrition and health. Naturally, in a survey on the e-commerce market, SGM is a strong player in the market for baby milk. Sarihusada, which has a factory in Yogyakarta, has also worked on the e-commerce market for its baby milk products. Its products are available in e-commerce in Indonesia, such as Orami, Tokopedia, Shopee, Bukalapak, JD.ID, Blibli, and Lazada
SGM entered e-commerce since 2016. “The products we offer in the e-commerce market are of the same quality as those in conventional markets. However, in e-commerce we offer a different shopping experience, because consumers can enjoy the convenience of shopping anywhere and anytime while getting more educational information," said Widianto Juwono, Sales Director of Danone Specialized Nutrition Indonesia who manages the marketing of SGM…
Chapter 1 Solutions
EBK BUSINESS ANALYTICS
Ch. 1 - Discuss how you might use business analytics in...Ch. 1 - How might analytics be used in the following...Ch. 1 - A supermarket has been experiencing long lines...Ch. 1 - For each of the following scenarios, state whether...Ch. 1 - Suppose that a manufacturer can produce a part for...Ch. 1 - A bank developed a model for predicting the...Ch. 1 - Four key marketing decision options are price P,...Ch. 1 - Total marketing effort is a term used to describe...Ch. 1 - A manufacturer of headphones is preparing to set...Ch. 1 - In this chapter, we noted the importance of...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- Sometimes curvature in a scatterplot can be fit adequately (especially to the naked eye) by several trend lines. We discussed the exponential trend line, and the power trend line is discussed in the previous problem. Still another fairly simple trend line is the parabola, a polynomial of order 2 (also called a quadratic). For the demand-price data in the file P13_10.xlsx, fit all three of these types of trend lines to the data, and calculate the MAPE for each. Which provides the best fit? (Hint: Note that a polynomial of order 2 is still another of Excels Trend line options.)arrow_forwardThe Baker Company wants to develop a budget to predict how overhead costs vary with activity levels. Management is trying to decide whether direct labor hours (DLH) or units produced is the better measure of activity for the firm. Monthly data for the preceding 24 months appear in the file P13_40.xlsx. Use regression analysis to determine which measure, DLH or Units (or both), should be used for the budget. How would the regression equation be used to obtain the budget for the firms overhead costs?arrow_forwardThe file P14_01.xlsx contains data on 100 consumers who drink beer. Some of them prefer light beer, and others prefer regular beer. A major beer producer believes that the following variables might be useful in discriminating between these two groups: gender, marital status, annual income level, and age. a. Use logistic regression to classify the consumers on the basis of these explanatory variables. How successful is it? Which variables appear to be most important in the classification? b. Consider a new customer: Male, Married, Income 42,000, Age 47. Use the logistic regression equation to estimate the probability that this customer prefers Regular. How would you classify this person?arrow_forward
- The file P13_29.xlsx contains monthly time series data for total U.S. retail sales of building materials (which includes retail sales of building materials, hardware and garden supply stores, and mobile home dealers). a. Is seasonality present in these data? If so, characterize the seasonality pattern. b. Use Winters method to forecast this series with smoothing constants = = 0.1 and = 0.3. Does the forecast series seem to track the seasonal pattern well? What are your forecasts for the next 12 months?arrow_forwardA marketing director would like to estimate the effect of advertising expenditures on the quantity of his product sold controlling for the effects of price and average household income in the area. The dependent variable in this regression should be: A) price B) average household income C) quantity sold D) advertising expenditurearrow_forwardWhat is the difference between a causal model and a time-series model?arrow_forward
- Develop a spreadsheet for the question. The vice president of finance has looked at your ooriginal scoring model and feels that tax considerations should be included in teh model with a weight of 15. In addition, the VP has scored the methods on tax considerations as follows: method A recieved a score of 3, method B recieved a score of 2, and Method C recieved a score of 1. How would this additional information affect your recommendation?arrow_forwardSandy James thinks that housing prices have stabilized in the past few months. To convince her boss, she intends to compare current prices with last year's prices. She collects 12 housing prices from the want ads: 125,900 253,000 207,500 146,950 121.450 135,450 175,000 200,000 210,950 166,700 185,000 191,950 She then calculates the mean and standard deviation of the prices she has found. What are these two summary values?arrow_forwardLefola Limited is the only manufacturer of product G_Easy in the Popa Land. It has provided documented levels of demand at certain selling prices for product G_Easy which are as follows:Price per unit 7 0006 000Demand Units 01Total costs 3 0005 000875 000 2 4 000 3 3 000 4 2 000 5 1 000 68 000 12 000 17 000 23 000 30 000Required:MGA40AT/POF117V – 2020 Instructional Teaching manual packUsing a tabular approach, calculate the marginal revenues and marginal costs for product G_Easy at the different levels of demand, and so determine the selling price at which Lefola Limited’s profits are maximized.arrow_forward
- What is the difference between a dependent and an independent variable?arrow_forwardThe following table shows the number of televisions sold over the last ten years at a local electronic store. Year TV Sales 1 150 2 300 3 480 4 600 5 630 6 640 7 700 8 825 9 900 10 980 i. Using trend projection, develop a formula to predict sales for years 11 and 12. You have to show all working. You will need to develop a table to calculate the slope and the intercept. ii. Use that formula to forecast television sales for years 11 and 12.arrow_forwardA cosmetic manufacturer wants to understand why users shop online versus in store, and how they might take better advantage of the online channel; the manufacturer wants to make improvements to the company’s website. The manufacturer also wants to find out why Nordstrom.com (a competitor’s website) appeals to cosmetic consumers versus other websites. The cosmetic manufacturer also wants to find ways to improve consumers’ in-store experience. Further, the manufacturer want to produce a three (3) month sales forecast based on the data produced from the research. Write a report about the marketing research process and your findings. Your report should include: Describe the research design. Use the qualitative method: Netnography. For each give the following details: Participants i. Numbers, gender, age, how selected. Justify each Interviews i. How many, the setting & process, length of time. Justify each ii. Questions/discussions held related to the 4 objectives Ethical…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Correlation Vs Regression: Difference Between them with definition & Comparison Chart; Author: Key Differences;https://www.youtube.com/watch?v=Ou2QGSJVd0U;License: Standard YouTube License, CC-BY
Correlation and Regression: Concepts with Illustrative examples; Author: LEARN & APPLY : Lean and Six Sigma;https://www.youtube.com/watch?v=xTpHD5WLuoA;License: Standard YouTube License, CC-BY