Question

The McBurger Corporation developed a new vegan burger and introduced the product to several test markets. The burger comes with the non-meat based patty and the usual accoutrements such as lettuce, tomato, ketchup, mustard, pickle, onion, special sauce, and a bun. The company is interested in customer response, and surveyed customers about satisfaction with the burger. A data analyst proposed a multiple regression model with an interval level dependent variable of repurchase (measured by a ratings thermometer from 0 (will definitely not repurchase) to 100 (will repurchase). The data analyst is not sure on what independent variables will best predict repurchase, and needs your help. What independent variables would you include in the multiple regression model? Explain your reasoning for including each independent variable. Which variable would be your best predictor of repurchase?

Answer 1

*Please give a positive rating*

In this multiple linear regression model to predict repurchase, there can be many independent variables which will best describe the selling behaviour.

1. Price - Price of the vegan burger helps the analyst to determine the repurchasing behaviour. If the price will be not much then the customer chance of repurchase the burger will be higher.

2. Craving for the next burger - It will depend on the test of the burger. If the customer finds the test of burger satisfactory and if it will increase his cravings next burger then he will buy the next one.

3. Offer on next burger - If a customer gets exciting offers like a discount or any other rewards then he will buy the next burger.

According to me the price of the next burger would be the best predictor of repurchase.

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