3 - The Interpretation Of Marketing Data Using Technology

Question 1

What Is Correlation?
(2 Points)

Answer 1

~ Identifying a relationship between 2 variables.

~ E.g. Marketing budget and sales.

Question 2

What Can Correlation Be?
(3 Points)

Answer 2

~ Positive (+1).

~ Negative (-1).

~ Zero (0).

Question 3

What Does A Correlation Of +1 Mean?
(2 Points)

Answer 3

~ The 2 variables move in the same direction.

~ E.g. As temperature goes up ice cream sales go up.

Question 4

What Does A Correlation Of -1 Mean?
(2 Points)

Answer 4

~ The 2 variables move in opposite directions.

~ E.g. As road tax prices go up the sales of 4x4s goes down.

Question 5

What Does A Correlation Of 0 Mean?
(2 Points)

Answer 5

~ There is no relationship between the factors.

~ E.g. Average rainfall and sales of textbooks.

Question 6

What Do Confidence Levels Reflect?

Answer 6

The degree of certainty with which a business believes a stated outcome will happen.

Question 7

What Factors Affect Confidence Levels?
(3 Points)

Answer 7

~ Sampling technique.

~ Research method.

~ Expertise of the person carrying out and analysing the research.

Question 8

What Determines The Confidence Interval?

Answer 8

The size of the error.

Question 9

What Is Extrapolation?

Answer 9

A technique used when trends can be clearly identified, when the market is stable.

Question 10

What Is The Value Of Technology?
(5 Points)

Answer 10

~ Gather and analyse large volumes of data quickly and accurately.

~ Track and interpret consumer spending habits.

~ Collect consumer opinions from around the world.

~ Encourage consumer feedback through social media and review sites.

~ Enable two way communication.