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This was proven with the results that the average sales went from 1.90 during no offers to 2.68 when there was an offer. However, more interestingly, the category of the customer base also impacts Total Sales. The Best category buys the most chicken with 349.7 of total sales. Next follows the Frequent buyers, who add 272.3 to total sales. The spenders are third, representing 224.7 of total sales and the uncertain account for the least, as expected, with 195.9 of total sales.
The actual regression results below show that all the variables are statistically significant to at least the 5% level:
Dependent Variable: TOTAL_SALES01
Method: Least Squares
Sample: 1 16
Included observations: 16
Variable
Coefficient
Std. Error
t-Statistic
Prob.
OFFERS
221.3583
74.73696
2.961832
0.0129
BEST
349.6604
67.36698
5.190382
0.0003
FREQUENT
272.3604
67.36698
4.042936
0.0019
SPENDER
224.6854
67.36698
3.335245
0.0066
UNCERTAIN
195.9604
67.36698
2.908849
0.0142
R-squared
0.521825
Mean dependent var
316.0063
Adjusted R-squared
0.347943
S.D. dependent var
160.3073
S.E. of regression
129.4482
Akaike info criterion
12.81475
Sum squared resid
184325.2
Schwarz criterion
13.05618
Log likelihood
-97.51796
F-statistic
3.001032
Durbin-Watson stat
2.911923
Prob(F-statistic)
0.066903
The next product to be analysed in the same way as chicken above will be yogurt, which was also on special offer from 1-7 July 2007, from a regular price of 1.55 per unit to 1.25 per unit. Analysing the raw data below:
offers
category
avg sale
no
best
2.00
no
best
1.90
no
best
1.73
no
spender
2.30
no
spender
2.02
no
spender
2.09
no
frequent
1.55
no
frequent
1.55
no
frequent
1.55
no
uncertain
1.55
no
uncertain
1.55
no
uncertain
1.55
yes
best
1.87
yes
spender
1.87
yes
frequent
1.87
yes
uncertain
1.87
we find that both the Frequent and Uncertain categories that were buying only one unit at the normal price, bought almost 1.5 units at the offer price. This offer price also affected the Best and Spender category, who were purchasing between 1.25 and 1.48 units at the normal price and also increased to 1.5 units with the special offer.
Carrying out a similar regression analysis like in the chicken example above, we obtained the following results:
TOTSALESYOG = 97.90416667*OFFERS + 480.2239583*BEST + 323.3664583*FREQUENT + 250.6414583*SPENDER + 82.49145833*UNCERTAIN
Here, the total sale of yogurt represented by the existence of offers is 97.90, a bit lower than in the case of chicken. However, for Best and Frequent customers, yogurt's special offer represents a big part of the total sales price of yogurt.
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