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5_pampers_case_regression.doc

Pampers Case

In an increasingly competitive diaper market, P&G’s marketing department wanted to formulate new approaches to the construction and marketing of Pampers to position them effectively against Hugggies without cannibalizing Luvs. They surveyed 300 mothers of infants. Each was given a randomly selected brand of diaper (either Pampers, Luvs, or Huggies) and asked to rate that diaper on nine attributes and to give her overall preference for the brand. Preference was obtained on a 7-point Likert scale (1=not at all preferred, 7=greatly preferred). Diaper ratings on the nine attributes were also obtained on 7-point Likert scale (1=very unfavorable, 7=very favorable). The study was designed so that each of the three brands appeared 100 times. The goal of the study was to learn which attributes of diapers were most important in influencing purchase preference (Y). The nine attributes used in study were:

Variable Attribute Marketing options

X1 count per box Desire large counts per box?

X2 price Pay a premium price?

X3 value Promote high value

X4 skin care Offer high degree of skin care

X5 style Prints/color vs. plain diapers

X6 absorbency Regular vs. superabsorbency

X7 leakage Narrow/tapered vs. regular crotch

X8 comfort/size Extra padding and form-fitting gathers

X9 taping Re-sealable tape vs. regular tape

Question (will be discussed in week 8):

If you don’t have SPSS software at home, you may be able to download a trial version (good for 21 days) from spss.com(software(statistics family(PASW statistics 17.0(click “free trial” and download.

1. Run a regression analysis for brand preference that includes all independent variables in the model, and describe how meaningful the model is. Interpret the results for management.