The negative coefficient of the price attribute confirms that reduced price increases the probability of purchase.
As deals are quite crucial in the stimulation of purchases for the dealt brand, the addition of promotion attributes should increase the ability of the model to explain the behaviour. There is no direct measure of promotion in the data. The information provided is on sales, advertising and price (Ehrenberg, 1972). Because it is quite reasonable to expect a promotion to be accompanied by price change, heavy item movement or even advertsing may infer a deal in effect by the presence of any of those. Any of these occurences may not be relieble at all and therefore, the product will be identified through promotion if any only if these tow things are present. The attribute on promotion will be implemented as a dummy variable which will indicate if the product was identified to be on promotion at the time of the ...Show more