Market Research Based on Regression Analysis

Objectives:

Objectives

•  Evaluation of prices of Panasonic Plasma TVsets in category of large screens (37-65 inches) ü  Sampling ü  Determination of main price driving factors ü  Price and factors analyzing by means of the multiple linear regression modeling •  Proposal of new product

Sampling

² Product category (population of interest): Panasonic Plasma TV-sets with screen-sizes 37-65 inches. Sample of 25 items. Data were taken from “Google products” Internet service. ² Product category was divided on several groups according to their price and randomly choosing samples in numbers according to relative size of each group.

Stratified samples: 1000 - 2000 EUR - 10 samples (42% of represented TV-sets) 2000 - 4000 EUR - 10 samples (40%) 4000 - … EUR - 5 samples (18%)

Main price drivers

According to my first estimation most important factors of the price could be:

•  •  •  •  Dynamic contrast ratio (2-50 mil) Availability of 3D effect (68% of samples) Availability of audio system (48% of samples) Screen size

Amount TV-sets according to their screen size

Price,

 EUR

  1000-­‐2500

  2500-­‐…

  Screen

 size

  37-­‐42

 inches

  50

 inches

  50-­‐55

 inches

  58-­‐60

 inches

  65

 inces

  Amount

  7

  3

  6

  6

  3

Price and factors analyzing

Statistical characteristics of price

Average

  Min

 price

  Max

 price

  IQR

  Standard

 deviaCon

  2641.186047

  1034.883721

  6460.930233

  2262.063953

  1416.373236

Regression model

Dependent variable: price Initial independent variables: Screen size - SS Dynamic contrast ratio - DC 3D effect (0/1 “dummy” variable) – 3D Availability of audio system (0/1 “dummy” variable) - AS P-value of AS was 0,75 and this factor worsened results of other ratios. Therefore AS was excluded.

Summary of regression analysis

Thus the function is price = b0 + b1 * SS + b2 * DC + b3 * 3D...