Verifying the Credibility of Demand Estimates based on Regression Analysis

Yuqian Chen, Yiming Huang, Yuankai Wu

2022

Abstract

We conduct pre-test research to analyze the credibility of the demand estimates, marketing expenses and price of K-Pack in the future. In order to set up the experimental conditions, three prices 50 cents, 60 cents, 70 cents, and two advertising levels $3 million introduction plan and a $3.5 million plan have been introduced. Further, two store locations, L1: K-Pack in the bakery section and L2 K-Pack in the breakfast food section were used to collect data. A 4P marketing principle has been used to describe product, price, place and promotion. ANOVA, F-test and regression analysis have been used to test the research hypothesis and to examine the relationship among the research variables. It is identified from the study outcomes that price and/or store volume will affect monthly average sales for the first month. Furthermore, the coefficient value indicates that store volume positively predicts average sales, while price negatively predicts average sales, indicating that price has a statistically significant effect on average sales while the store volume does not have a statistically significant impact on average sales. Moreover, according to the results of the second month, price and store volume are insignificant to explain the variation in average sales. Similarly, price and sales are found to be insignificant in explaining variation in average sales of K-Pack. It is identified from 4P marketing analysis that the company need to focus on product quality, affordable prices, store locations, and promotional strategy to increase its sales in future. Overall, these results shed light on credibility of demand estimates.

Paper Citation

in Harvard Style

Chen Y., Huang Y. and Wu Y. (2022). Verifying the Credibility of Demand Estimates based on Regression Analysis. In Proceedings of the International Conference on Big Data Economy and Digital Management - Volume 1: BDEDM, ISBN 978-989-758-593-7, pages 503-509. DOI: 10.5220/0011188800003440

in Bibtex Style

@conference{bdedm22,
author={Yuqian Chen and Yiming Huang and Yuankai Wu},
title={Verifying the Credibility of Demand Estimates based on Regression Analysis},
booktitle={Proceedings of the International Conference on Big Data Economy and Digital Management - Volume 1: BDEDM,},
year={2022},
pages={503-509},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011188800003440},
isbn={978-989-758-593-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference on Big Data Economy and Digital Management - Volume 1: BDEDM,
TI - Verifying the Credibility of Demand Estimates based on Regression Analysis
SN - 978-989-758-593-7
AU - Chen Y.
AU - Huang Y.
AU - Wu Y.
PY - 2022
SP - 503
EP - 509
DO - 10.5220/0011188800003440