A Marketing Model Using Enhancement Variables

Abstract

This paper provides an applied case study to motivate the identification of enhancement variables in the two-variable, multiple-regression case for teaching and learning purposes. It is well known that enhancement variables have a synergistic effect on the coefficient of multiple determination. However, it is not well known that there are alternative technical approaches for the investigation of this condition, and there has been a lack of real examples that discuss and demonstrate the presence of enhancement variables. This study uses prior research in the areas of suppression and synergy to identify enhancement variables in a marketing model that uses promotional activity to explain sales.