Dominos conducted a survey to know customers’ attitudes towards different marketing attributes and their purchase behaviors. Using the survey data, the marketing manager at Dominos wants to know if how much customers value the current pricing strategy (i.e., attribute importance) has a positive effect on the customer’s purchase behavior. After regressing importance of price (i.e., independent variable) on purchase frequency (i.e., dependent variable), the result is as shown below.
Coefficients Standard Error t Stat P-value Intercept -0.58 0.25 -2.28 0.025
Importance of Price 0.88 0.07 12.9 0
Which of the following statements is true about the effect of price on purchase frequency?
Question 3 options:
a.For each unit increase in the importance of price, the purchase frequency decreases by 0.88 units.
b.For each unit increase in the importance of price, the purchase frequency increases by 0.88 units.
c.Increase in the importance of promotion has no effect on purchase frequency.
d.All of the above.