¶ … Pizza Shop Demand Forecasting
Pizza Company Entry: Consumer Demand Forecast
There are a number of issues a company needs to think about before entering any particular market. In an industry such as the food service industry, there are even more factors to consider. Entering into any market can be a gamble, yet food service is often even more vulnerable in regards to the already strong presence of successful competitors and the income levels of the consumer markets being served. Within this particular analysis, the data presented in the course shell will be used as a way to determine if the Pizza Company should enter this particular market, and if so, which conditions will be most desirable in order to facilitate the most successful entry into the market.
Regression Analysis
One of the best forecasting tools companies can use is regression forecasting in order to determine the potential for consumer demand to work in the company's favor. Such statistical testing can help calculate elements and market factors in a computable way, where certain factors can be adjusted based on changing market conditions as a way to calculate potential changes in consumer demand. The data set was provided within the course shell. This data set was then put into excel in order to run regression statistical testing to better explore the coefficient determinate and thus understand hw various factors of price, competitor price, advertisement budgets, and the average income levels of the consumers who dominate that market environment. Manipulating these factors to then mimic market conditions as they stand can help provide information for forecasting the future consumer demand, if market conditions do not change dramatically.
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.912678
R Square
0.832981
Adjusted R. Square
0.806258
Standard Error
14875.95
Observations
30
ANOVA
df
SS
MS
F
Significance F
Regression
4
2.76E+01
31.1708
0
6.90E+09
1
2.20E-09
5.53E+00
2.21E+00
Residual
25
9
8
3.31E+01
Total
29
0
Coefficient ts
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Lower 95.0%
Upper 95.0%
69974.8
1.84112
0.0775
272948
272948
Intercept
128832.2
2
3
1
-15283.6
1
15283.6
1
5.54E
Price (P)
-19876
6
4.84678
5
-28321.8
11430.1
28321.8
11430.1
Competitor
4.47143
0.00014
22592.4
22592.4
Price...
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