Question

A sales manager of a life insurance firm administered a standard job satisfaction scale to all the members of the firm’s salesforce. The manager then correlated job satisfaction with years of school completed for each salesperson. The resulting correlation was .11. On the basis of this analysis, the sales manager concluded: “A salesperson’s level of education has little to do with his or her job satisfaction.” Would you agree or disagree with this conclusion? Explain the basis for your position.

What purpose does multiple regression analysis serve? Give an example of how it might be used in marketing research.

Answer 1

I agree to the conclusion by the sales manager that "A salesperson’s level of education has little to do with his or her job satisfaction" owing to the little correlation between the job satisfaction and the level of education.

The purpose that multiple regression serves is that it provides the effect of multiple independent variables on the dependent variable based on the coefficients and the correlation factors. It is used in marketing research to understand the influence of multiple factors on sales of the product and thus helps in understanding the influence of factors like marketing spend, consumer awareness, product features etc,