MRP Biscuits Regression Case

Answers
1. Multiple regression was run through SPSS and the results of it in the form of tables have been
shown below, named after their significance level. (0.1, 0.05, 0.01)

Multiple Regression analysis

At 0.1 % significance level
SPSS Output

Regression Equation of Preference

Preference = 0.7329 + 0.2947*Nutrition Value + 0.1705*Taste + 0.5482*Preservation Quality

At 0.05 % significance level

SPSS Output

Regression Equation of Preference

Preference = 0.7329 + 0.2947*Nutrition Value + 0.1705*Taste + 0.5482*Preservation Quality

At 0.01 % significance level

SPSS Output

Regression Equation of Preference

Preference = 0.7329 + 0.2947*Nutrition Value + 0.1705*Taste + 0.5482*Preservation Quality
2. Regression results are as follows:
Regression Statistics
Multiple R
0.9275
R Square
0.8603
Adjusted R Square
0.8486
Standard Error
0.6992
Observations
40

3. The Partial Regression Coefficients are,

Preference = 0.7329 + 0.2947*Nutrition Value + 0.1705*Taste + 0.5482*Preservation Quality
Interpretation
From the above regression equation we can infer that:

With every 1% increase in nutrition value of the biscuit, there will be 0.2947% change in the
preference of the customer.
Also if we increase the taste of the biscuit by 1%, there will be 0.1705% change in the preference
of the customer while buying.
Similarly for every 1% increase in preservation quality, there will be a 0.5482% change in the
preference.

4. Overall significance of the regression using Anova table,

Interpretation
The p-value i.e., f-significant value obtained from the results is 0, which is lesser
than our alpha value (0<0.05) in all the three cases therefore, the regression model
is significant.
5. The significance of the partial regression coefficient using a 1%, 5% and
10% level of significance is shown in the table below:

6. At 95% Confidence interval, for Beta Coefficients are shown in the table
below:

7. As a marketing manager of MRP biscuit company, to improve the marketability of

the biscuit brand, I would spend more money on preservation quality of the biscuits
because the coefficient of preservation quality (0.7868) is much higher than the
other two attributes i.e. nutrition value (0.5032) and taste (0.3794). Hence there will
be a greater effect on the preference and buying behavior of the consumer for the
biscuits with respect to the changes in preservation quality.