Advisor 2 a Study of Industrial Marketing Budgeting Part 1 Background Dat
Advisor 2 a Study of Industrial Marketing Budgeting Part 1 Background Dat
Gary Louis Lilien
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0 N = = 110, (t-statlstics in ( . ) ) -22- Uslng the same procedure, the following additional variables were found to be related to marketing: PROD: indicator of product-definition complexity (machinery or component part) DIFFPERC: difference in perceived quality between current and prospective customers (1 = current customers perceived quality higher than prospects, otherwise) DIRUSERS: fraction of product sales made to users, not throuRh independent resellers. Exhibit 15 gives the model for m...arketing. Exhibit 15 Markatlng Model Results LN(MKTG) = + . 185 + . 712 LN( SALES) (12. 6) + . 082 LN (USERS) (3. 1) -1. 633 LN(CONC) (3. 1) - . 993 LN(SPECIAL) (2. 8) - . 424 LCYCLE (2. 0) + . 809 PLANS (3. 9) + . 528 PROD (2. 5) - . 305 DIFFPERC (1. 7) + . 194 LN(DIRUSER) (0. 6) r2 = . 72 SEE - . 91 F - 28. 2 N -110 f (t-9tatisti cs in ( -23- Finally, the advertising/marketing model Is estimated. We do not search for new variables, noting that Aj ^-. -t Advertising „, ^, Advertising = — - — ; ^ x Marketing Marketing " g and that the variables that affect advertising/marketing should already be included in the model.
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