Coefficients

The standardized coefficients are shown in the table. The sign of the coefficient indicates whether the predicted response increases or decreases when the predictor increases, all other predictors being constant. For categorical data, the category coding determines the meaning of an increase in a predictor. For instance, an increase in Money-back guarantee, Package design, or Good Housekeeping seal will result in a decrease in predicted preference ranking. Money-back guarantee is coded 1 for no money-back guarantee and 2 for money-back guarantee. An increase in Money-back guarantee corresponds to the addition of a money-back guarantee. Thus, adding a money-back guarantee reduces the predicted preference ranking, which corresponds to an increased predicted preference.

Figure 1. Regression coefficients
Table showing independent variables in the rows and unstandardized and standardized coefficients, (B and beta), t, and significance in the columns

The value of the coefficient reflects the amount of change in the predicted preference ranking. Using standardized coefficients, interpretations are based on the standard deviations of the variables. Each coefficient indicates the number of standard deviations that the predicted response changes for a one standard deviation change in a predictor, all other predictors remaining constant. For example, a one standard deviation change in Brand name yields an increase in predicted preference of 0.056 standard deviations. The standard deviation of Preference is 6.44, so Preference increases by 0.056 x 6.44 = 0.361. Changes in Package design yield the greatest changes in predicted preference.

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