Marketing Research Assignment: Analysis of BIOBLANC Sales Data

This assignment focuses on analyzing the sales data of Barossa Winery's BIOBLANC wine. Students are tasked with using regression analysis to model and forecast sales. The assignment begins with simple linear regression, exploring the relationship between sales and various independent variables like price and advertising budget. Students then build upon this by using multiple regression to improve the model, incorporating new variables derived from the original data. The ultimate goal is to forecast sales for a specific period based on the developed models. The assignment requires students to use statistical software to analyze the data, interpret the results, and draw conclusions about the factors influencing sales. The assignment assesses the student's ability to apply regression techniques and their understanding of how to use data to make informed business decisions.

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