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 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.

Transcribed Image Text:

=-3.888 + 1.449X" + 1.462Xy-0. 190XiXy