Formulate and estimate a regression model to understand how the different channels
GROUP EXERCISE
BASICS OF SAS
Technographics Dataset
Forrester North American Technographics Benchmark survey is conducted by Forrester Research Co. every year to track trends in usage and purchase of a variety of high-tech products (like computers) and services from tens of thousands of US and Canadian consumers. The survey is the largest survey in the world that is available to study consumer attitude and use of technology, and is commonly used by consumer and technology marketing companies for “product planning and go-to-market strategy assessments” (Business Wire 2008).
Download the SAS dataset named techno. The dataset (which is a sample of the original survey) has information on brand of PC bought by a panel of consumers, how they bought the PC and characteristics of the PC they bought. More specifically, the dataset has the following columns:
1) serial: consumer id
2) techimpress: Response to a Likert scale question “I like to impress people with my lifestyle. To what extent does this statement describe your attitude” with 1 being “Does not describe your attitudes at all” and 10 being “Describes your attitude completely”. Thus, a higher score here mean that the person wants to impress people with lifestyle.
3) techimp: Response to a Likert scale question “Technology is important to me. To what extent does this statement describe your attitude” with 1 being “Does not describe your attitudes at all” and 10 being “Describes your attitude completely”. Thus, a higher score here mean that technology is important to the person.
4) competitive: Response to a Likert scale question “I am very competitive when it comes to my career. To what extent does this statement describe your attitude” with 1 being “Does not describe your attitudes at all” and 10 being “Describes your attitude completely”. Thus higher score means more competitive.
5) fun: Response to a Likert scale question “Having fun is the whole point of life. To what extent does this statement describe your attitude” with 1 being “Does not describe your attitudes at all” and 10 being “Describes your attitude completely”. Thus higher score means more fun loving.
6) liketech: Response to a Likert scale question “I like technology. To what extent does this statement describe your attitude” with 1 being “Does not describe your attitudes at all” and 10 being “Describes your attitude completely”
7) age: respondent’s age
8) gender: =1 if the respondent is a female and = 2 if the respondent is a male
9) income: respondent’s income in $.
10) dma: id for geographic location.
11) price: Price the consumer paid for the PC (in $)
12) brand: The brand of the PC bought (Apple, Dell etc.).
13) Instorepurchase= “Yes”, if the consumer bought the PC by physically visiting the store and “No”, if the consumer bought the PC remotely via online
14) graphicscard=”Yes”, if the PC has a graphics card and “No”, otherwise
15) broadband= “Yes”, if the PC has a broadband adapter and “No”, otherwise
16) cdrom= “Yes”, if the PC has a CDROM Drive and “No”, otherwise
17) externalstorage= “Yes”, if the PC has external storage memory and “No”, otherwise
18) cdwrite= “Yes”, if the PC has a CD Writer and “No”, otherwise
19) newbie= “Yes” if the consumer is buying a PC for the first time (ever) and “No” otherwise. So Yes means the consumer is a newbie.
- Calculate the shares of the two types of marketing channels (instore vs. online). Calculate the average prices of computers across the two channels.
- Summarize how many newbies buy their PC from physical/brick-and-mortar store and how many from online. Comment on the results.
- Summarize the shares of the various brands at the aggregate level (across all regions) and at the individual regional level.
- Is there a correlation between price the consumer paid and their income?
- Which is the costliest brand?
- Is there a correlation between the variables of techimpress techimp and price paid by consumers? What do you conclude?
BONUS POINTS: Formulate and estimate a regression model to understand how the different channels, and the different PC Characteristics affect the price of the PCs. Write the model formulation, estimate the model, and then report/analyze the results of the model.
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