Barossa Winery BioBlanc Sales Forecasting

This assignment is about marketing research, specifically forecasting sales of a wine product called BIOBLANC by Barossa Winery. The data consists of 30 periods with variables Y (total demand), X1 (price of BIOBLANC), X2 (average price of competing products), and X3 (advertising budget). Students are asked to use simple linear regression to estimate the relationship between Y and each independent variable, then improve the model using multiple regression. They also need to predict the total demand for period 31 given specific values of X1, X2, and X3.

Marketing Research, Fall 2016
Assignment 3
SPSS Case
 You can locate the database on the Blackboard: Assignments-> Assignment 3-> BIOBLANC
 Due Date is Wednesday, 30 November 2016 (at the beginning of class)
Barossa Winery is a major wine producer company in the region of South Australia. The company would
like to forecast the sales of one of its products, BIOBLANC (a top quality white wine). Data were
collected during the 30 previous periods (where on period comprises 4 consecutive weeks).
The data concern the 4 following variables:
 Y denotes the total demand for this product ( in 10,000 one-liter bottles)
 X1 denotes the price of the product (1-liter bottle) during the period
 X2 denotes the average price of the competing products during the period
 X3 denotes the advertising budget (in 1,000 euros) spent on BIOBLANC during the period
Questions
1. Use simple linear regression to estimate the relationship between the dependent variable Y and each
of the 3 independent variables. Which of these relationships is "best" for predicting the sales in period
31?
2. Can you improve the model using multiple regression? (Hint: other variables can be considered; X4=X2-
X1; X5=((X2-X1)/X1)x100; and X6=X23). Which model do you propose?
3. Based on results for question2, estimate the total demand for BIOBLANC if, for period 31, X1=$39,
X2=$40, and X3=$50K.
The small Database is printed on next page