AC VS DC aeston Completon Status he retail company XYZis conducting a study tryi

Question

AC VS DC aeston Completon Status he retail company XYZis conducting a study trying to explain and predict customer spending tn their retail stores. They compiled the database from their own records and customer surveys, which contains the following information organized per transaction: 1. Customer spending per store visit (dependent variable) - measured in S 2. Season when purchase is completed (summer, spring, winter, and fall). For every season there is a variable that indicate the season (0-no, I - yes), 3. Customer's gender-0 male, 1-female 4. Marital Status-0-single, 1 -married 5 Household income - the total income of the household measured in S 6. Retired status -0-no, 1- retired 7. Education-number of years that customer spent on education. Coefficients Model Standardized Coefficients Coefficients Std. Error Beta 0.865 7025 -7.24 0.60 1.113 | 2.995 | .004 1-37-04 5.957 8.737 13.497 11.305 11.640 6.975 3.010 2.964 5,622 413 1230.00 Household income 5.009 4.14 | 0.01 Marital status Gender Winter Fall Summer Population in the store area . Dependent Variable: Customer spending per store visit in dollars 4338 454 35.86 0.00 31.19 0.60 4.120 | .002 | .15 -0.03 016 1.24 0.21 61 3385 0.71 4.0 5.345 3 Based on the outpa above, answer the following question desobe the demographics and geographics of the most profitable market segment. Note: please review the segmentation theory from your marketing classes to make sure that you consider appropriate variabies Microsoft PowerPoint

Explanation / Answer

Solution:

In the given table above the coefficient column gives t - statistic (and corresponding p values) for each of the demographics and geographies.

In order to understand which independent variable is most profitable, check for significance.

Per rejection rule based on p value, reject null hypothesis [for example, H0: 1= 0 (education is not useful in predicting customer spending per store visit in dollars)] if p value is less than = 0.05, and conclude the independent variable to be significant.

Studying the p values, it seems that education, household income, retired status, marital status, winter season are the significant demographics.

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