Bivariate analysis for marketing managers

Clarissa Perez 9/04/2025

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Note: this analysis was performed using the open source software R and Rstudio.

Objective

The objective of this tutorial is to explain how bivariate analysis works.This analysis can be used by marketers to make decisions about their pricing strategies, advertising strategies, and promotion stratgies among others.

Bivariate analysis is one of the simplest forms of statistical analysis. It is generally used to find out if there is a relationship between two sets of values (or two variables). That said, it usually involves the variables X and Y (statisticshowto.com).

• Univariate analysis is the analysis of one (“uni”) variable.
• Bivariate analysis is the analysis of exactly two variables.
• Multivariate analysis is the analysis of more than two variables.

Dataset - We will be using two online datasets available in R for this tutorial

plot(y3 ~ x2, data = anscombe, pch = 16)
abline(lm(y3 ~ x3, anscombe), col = "grey20")

Question 1:is there a relationship between x and y? If so, what does the relationship look like?

Yes, there is a positive relationship.

library(readr)
library(readr)
ad_sales <- read_csv('https://raw.githubusercontent.com/utjimmyx/regression/master/advertising.csv')

## New names:
## Rows: 200 Columns: 6
## ── Column specification
## ──────────────────────────────────────────────────────── Delimiter: "," dbl
## (6): ...1, X1, TV, radio, newspaper, sales
## ℹ Use `spec()` to retrieve the full column specification for this data. ℹ
## Specify the column types or set `show_col_types = FALSE` to quiet this message.
## • `` -> `...1`

plot(sales ~ TV, data = ad_sales)

Question 2:Is there a relationship between TV advertising and Sales? If so, what does the relationship look like?

Yes, there is a positive relationship. As spending on TV ads increase, sales also tend to increase.

Question 3:Can you plot the relationship between radio advertising and Sales? If so, what does the relationship look like?

The plot shows a positive relationship between radio advertsing and sales. The data shows that increased radio advertising is associated with higher sales.

plot(sales ~ radio, data = ad_sales, 
     main = "Sales vs Radio Advertising Budget",
     xlab = "Radio Advertising Budget (in $1,000s)", 
     ylab = "Sales (in $1,000s)", pch = 16, col = "darkgreen")
abline(lm(sales ~ radio, data = ad_sales), col = "red", lwd = 2)

Question 4:Three things you learned from this tutorial

I learned that a bivariarte analysis helps find relationships between two variables, tv and radio ads are both related to sales, and visualizing data is important for better understanding.

References

Bivariate Analysis Definition & Example https://www.statisticshowto.com/bivariate-analysis/#:~:text=Bivariate%20analysis%20means%20the%20analysis,the%20variables%20X%20and%20Y.

https://www.sciencedirect.com/topics/mathematics/bivariate-data