Marketing Analytics

Submitted To: -

Submitted By: -

Prof. Raman Sreedhara

Name: - Dev Kakkar

Institute of Management

Reg. No.: - 1527907

Christ University, Bengaluru.

Section: - M2

Assignment-3
A market researcher wants to understand the characteristics of people that determine which one of 2 brands of
red wine they prefer. Data is collected on 30 people (15 of which prefer brand A and 15 who prefer brand B) with
age, gender and income as the 3 independent variables.

Independent variables

Choice (0 = Brand A, 1 = Brand B)

Dependent variables

X1 = age in years
X2 = gender (0 = Female, 1 = Male)
X3 = income in rs 000 / month
Build logit function

Table 1:

Classification Tablea
Predicted
Choice
Observed
Step 1 Choice

Brand A

Brand B

Brand A

15

100.0

Brand B

14

93.3

Overall
Percentage
a. The cut value is .500

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Percentage
Correct

96.7

Interpretation of Table 1From the table we can see that all the values of Brand A are correctly identified whereas 1 value in Brand B is
wrongly identified

Table 2:

Hosmer and Lemeshow

Test
Step

Chi-square

2.837

df

Sig.
8

.944

Interpretation of Table 2:
Since the significance value is more than 0.05, we can say that there is no difference between the observed and the predicted values and
hence the model is good

Table 3:

Model Summary
Step
1

-2 Log
likelihood
12.661a

Cox & Snell

R Square
.619

Nagelkerke R
Square
.825

a. Estimation terminated at iteration number 9

because parameter estimates changed by less
than .001.

Interpretation of Table 3:
From the above table we can see that according to Cox & Snell R Square, the contribution of the independent variables in determining the
preference of people towards the brand of Red Wine is 61.9% variables and according to Nagelkerke R Square, 82.5% is the contribution of
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the variables.

Table 4:

Variables in the Equation

B
Step 1a

Age

S.E.

Wald

Sig.

Exp(B)

.443

.288

2.356

.125

1.557

Gender

8.783

4.785

3.370

.066

6524.445

Income

.398

.248

2.564

.109

1.488

-24.706

12.916

3.659

.056

.000

Constant

a. Variable(s) entered on step 1: Age, Gender, Income.

Equation:
y=a+k1x1+k2x2+k3x3knxn
Logit function: ey/(ey+1)
y=-24.706+0.443(age)+8.783(gender)+0.398(income)

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df