Data and Market Analysis Flashcards
What is market analysis?
gathering data and tracking trends related to the company, competitors, conditions, and consumers, in order to adopt an appropriate marketing strategy.
What is qualitative data?
Qualitative data, on the other hand, is information about decisions based on emotions, feelings, opinions and motivations. An example of a question that leads to qualitative data is ‘What is it about a brand that motivates you to make a purchase?’
What is quantitative data?
Quantitative data is based on numerical information that can be statistically analysed. This information is from the results to questions such as ‘What is the average weekly spend of our customers?’
What do elasticity formulas allow us to do?
to work out how much the increase/decrease will be, which is used to inform pricing and marketing decisions, to maximise revenue.
What is PED?
measures the responsiveness of quantity demanded to a change in price
PED formula?
% change in quantity demanded / % change in price
What affects PED?
Level of competition, subtitutes, luxury/necessity.
How can businesses become more price elastic?
restrict competition, encourage customer loyalty and brand value.
What does it mean to be price elastic?
-More than 1.
-This means that a change in price will cause a more than proportional change in the quantity demanded.
-The level of demand is sensitive to a change in price.
-Less steep graph.
What does it mean to be price inelastic?
-Less than 1.
-This means that a change in price will cause a less than proportional change in the quantity demanded.
-The level of demand is not sensitive to a change in price.
-Steep graph.
What is unitary elasticity?
-1.
-This means that a change in price will cause an equal and proportional change in the quantity demanded.
What are elastic markets?
markets that are approaching perfect competition are elastic, such as monopolistic competition. Luxury goods are also elastic markets.
What are inelastic markets?
markets with high brand loyalty such as oligopolies, and where there is little competition such as monopolies. Necessary goods are inelastic markets.
What is YED?
Income elasticity of demand (YED) is the measure of the responsiveness of the quantity demanded of a g/s as a result of a change in the income of the consumers demanding the good.
YED formula?
% change in quantity demanded / % change in income