Marketing Analytics – Quiz 4
Logistic Regression & Managerial Insight
Your Name
Objective
The goal of this analysis is to understand what drives customer subscription and translate the results into clear managerial insights.
The outcome variable is binary: - 1 = Customer subscribes
- 0 = Customer does not subscribe
Data & Variables
Two key predictors are used:
Engagement Score
Measures how actively a customer interacts with the service.Price Sensitivity
Measures how strongly a customer reacts to price changes.
These variables are simple, intuitive, and managerially meaningful.
Logistic Regression Model
Key Results (Interpretation)
- Engagement has a positive effect on subscription.
- Price sensitivity has a negative effect on subscription.
The main insight is that engagement matters more than price sensitivity.
Predicted Probabilities
Managerial Insights
- Highly engaged customers are much more likely to subscribe.
- Price-based strategies alone are less effective.
- Engagement is a stronger behavioral signal.
Managerial Recommendations
- Focus marketing efforts on high-engagement customers.
- Use discounts selectively for price-sensitive segments.
- Invest in engagement-building activities such as content and CRM.
Limitations
This is a simple model with only two predictors. Additional variables could improve accuracy.
Conclusion
Logistic regression provides clear and actionable managerial insight.
Key takeaway: Increasing engagement is more effective than lowering prices.