Case $6-$ Logistic Regression

The Excel data set for this case is: Subscription darr

Amanda Chen, the manager at a premier subscription firm, is tasked with optimizing marketing strategies to enhance customer acquisition and retention rates. The firm operates on a model that relies heavily on periodic subscriptions for a diverse range of products. In light of intensifying competition and evolving consumer preferences, the company recently rolled out an aggressive marketing campaign aimed at boosting subscription rates. The cornerstone of this initiative is a tailored one$-$time percentage discount offered to potential subscribers, hypothesizing that a financial incentive might sway their decision to subscribe.

The efficacy of this marketing tactic is not only critical for immediate revenue generation but also for long$-$term customer lifetime value. As such, Amanda has decided to employ logistic regression analysis to quantify the impact of the discount and to understand how age and sex may interact with the likelihood of a customer choosing to subscribe. The objective is to extract actionable insights that could refine targeting strategies, personalize future offers, and allocate resources more effectively.

The dataset Amanda has compiled includes: