Application of logistic regression evaluate determinative factors in consumers’ choice of air conditioning products

Author: 
Wang, Lai-Wang and Chen, Chiu-Hsiung

Over the past decades, the competition of household air conditioning products has become sharp in Taiwan. The life-cycle of a producthas reached its maturation. Moreover, as the global trend of micro-profits arrives, many brands including some famous and other ordinary ones have been created by enterprises. This trend not only leave an enterprise no other choices but to adjust its very own constitutions(such as the transformation of its interior procedures, reducing its own operating costs, and innovating a new product), but also renew its selling strategy in order to raise its market share.For example, due to the rapid revolution of technologies, the consuming culture has also undergone a lot of changes. Because the consumers are easily influenced by mass media and commercial advertisements, a totally different consuming culture might have been formed. Owing to this fact, consumers might have lowered their loyalties to a brand such that an entrepreneur must apply the following strategies to regain his winsome advantages over his competitors, e.g. taking cost-driven leadership,making product-differentiation, or using focused strategy. The research method of the present study took Linear Probability Model and distributed 600 questionnaires to related consumers in the northern, central and southern parts of Taiwan. The purpose of this research is to understand what important factors there are and among which what is the most crucial factor aslong as a consumer purchase a new air conditioner, in order to give some advice to the relevant producers. The studying result shows that under the significance level (i.e. p=0.05), whether the following ten factors have obvious effects on a consumer’s buying activity of an air conditioner in a household: (1) types of air conditioners, (2) brands of air conditioners, (3) the person who made the decision of purchase, (4) the preferred brands, (5) the “Green factor”, i.e.whether an enterprise is environmentalfriendly or not, (6) health and safety considerations, (7) quality-or service-related factors, (8) promotion, (9) locality, and (10) annual income of a family.

Paper No: 
2279