Hi, I have the following linear regression model specified. These are at the consumer order level, in which the DV measures the amount of discount coupon ($) consumers desire, which is a function of product price ($), market price ($) and durability (measure in months) of the product.
DISCOUNT_COUPON = PRODUCT_PRICE + MARKET_PRICE + PRODUCT_DURABILITY + CONTROLS
The estimated coefficients of the regression model is:
DISCOUNT_COUPON = 0.10*PRODUCT_PRICE + 0.02*MARKET_Price + 0.01*PRODUCT_DURABILITY + CONTROLS
Is it valid to make the following observations:
1. Consumers are 5 times (=0.10/0.02) more sensitive to product price than to market price.
2. Consumers are 10 times (=0.1/0.01) more sensitive to product price than to durability of the product.
Overall, I would like to know if I can simply compare the magnitude of the coefficients in the same regression model for (a) both coefficients have the same unit of measure (i.e. $), and (b) both coefficients have different unit of measure (i.e. one in $ and the other in months).
Thank you.
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