Regression Basics For Customer Research

Regression Basics For Customer Research

Extract

This note provides an understanding of the concepts behind regression analysis for customer research. Students might confuse “running a regression using software” with an “understanding of regression.” This note is designed to accomplish the latter.

Sales and Advertising: A Basic Example

A manager believes increasing spending on marketing-mix factors like advertising leads to higher sales. Statistically, we are interested in knowing if sales and advertising are related. The nature and magnitude of this relationship can be expressed in three different ways, each building upon the other:

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