# Question: Increasing customer satisfaction typically results in increased purchase behavior For

Increasing customer satisfaction typically results in increased purchase behavior. For many products, there is more than one measure of customer satisfaction. In many, purchase behavior can increase dramatically with an increase in just one of the customer satisfaction measures. Gunst and Barry (“ One Way to Moderate Ceiling Effects,” Quality Progress, October 2003, pp. 83– 85) consider a product with two satisfaction measures, X1 and X2, that range from the lowest level of satisfaction, 1, to the highest level of satisfaction, 7. The dependent variable, Y, is a measure of purchase behavior, with the highest value generating the most sales. Consider the regression equation:

Suppose that X1 is the perceived quality of the product and X2 is the perceived value of the product.

a. What is the predicted purchase behavior when X1 = 2 and X2 = 2?

b. What is the predicted purchase behavior when X1 = 2 and X2 = 7?

c. What is the predicted purchase behavior when X1 = 7 and X2 = 2?

d. What is the predicted purchase behavior when X1 = 7 and X2 = 7?

e. What is the regression equation when X2 = 2? What is the slope for X1 now?

f. What is the regression equation when X2 = 7? What is the slope for X1 now?

g. What is the regression equation when X1 = 2? What is the slope for X2 now?

h. What is the regression equation when X1 = 7? What is the slope for X2 now?

i. Discuss the implications of (a) through (h) in the context of increasing sales for this product with two customer satisfaction measures.

Suppose that X1 is the perceived quality of the product and X2 is the perceived value of the product.

a. What is the predicted purchase behavior when X1 = 2 and X2 = 2?

b. What is the predicted purchase behavior when X1 = 2 and X2 = 7?

c. What is the predicted purchase behavior when X1 = 7 and X2 = 2?

d. What is the predicted purchase behavior when X1 = 7 and X2 = 7?

e. What is the regression equation when X2 = 2? What is the slope for X1 now?

f. What is the regression equation when X2 = 7? What is the slope for X1 now?

g. What is the regression equation when X1 = 2? What is the slope for X2 now?

h. What is the regression equation when X1 = 7? What is the slope for X2 now?

i. Discuss the implications of (a) through (h) in the context of increasing sales for this product with two customer satisfaction measures.

**View Solution:**## Answer to relevant Questions

The production of wine is a multibillion dollar worldwide industry. In an attempt to develop a model of wine quality as judged by wine experts, data was collected from red wine variants of Portuguese “ Vinho Verde” wine. ...A sample of 30 houses recently listed for sale in Silver Spring, Maryland, was selected with the objective of developing a model to predict the taxes (in $) based on the assessed value of houses (in $ thousands) and the age ...An experiment was conducted to study the extrusion process of biodegradable packaging foam. Among the factors considered for their effect on the unit density (mg/ ml) were the die temperature (145° C versus 155° C) and the ...Among its other features, the MyTVLab website allows customers to purchase MyTVLab LifeStyles merchandise online. To handle payment processing, the management of MyTVLab has contracted with the following firms: • ...The following data were collected on non conformances for a period of 10 days: a. On what day is the proportion of nonconformances largest? Smallest? b. What are the LCL and UCL? c. Are there any special causes of ...Post your question