An Application of Econometric Techniques in Determining the Most Significant Factors Affecting the Sales of Forced Air Filters at the Wholesale Level at the Beginning of the 1990's
Fiebig, Friedrich H.
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This study was undertaken to undercover the most significant factors affecting the sales of forced air filters by wholesalers. The information was based on the responses from wholesalers on questions related to the filter products. The purpose of this paper is to design a model that contains the most significant factors affecting the sales of forced air filters by wholesalers. Only wholesalers of air filters were surveyed to determine sales of these products; the customers (of wholesalers) in most cases being retailers and contractors. The data was based on the responses of 28 wholesalers throughout the country. The responses from the surveys were only used if all pertinent questions were answered. A model was developed based on those factors that the consumer of filters (the retailer or contractor) would base the decision on whether to purchase one filter over another. These criteria consisted of the quality of the filter, length of the warranty, maintenance and installation manufacturer line carried, and region of the country. The model finally developed that best accounted for the factors affecting sales included mark up over price on the filter and at a certain level of significance the reciprocal of mark up. The extent of maintenance and region of the country were also significant in their effect on total sales. It appears for the wholesaler looking to maximize sales, it will want to obviously use a considerably large markup but be conscientious that there exists a markup at which only decreasing sales will be experienced. The wholesaler will want to also concentrate a large proportion of resources to selling in the Midwest. Higher sales are most likely going to be experienced with a higher quality filter requiring regular maintenance.