Market analysis

Question 1

What is qualitative research?

Answer 1

The gathering of non-statistical information that gives in depth into reasoning for human behaviour

Question 2

What is Quantitative research?

Answer 2

The gathering of statistical information to inform the company about people behaviour

Question 3

What is market research?

Answer 3

Involves identifying key facts and trends in a market to inform marketing and business decisions

Question 4

What are the benefits of quantitative research and qualitative research?

Answer 4

Helps the business identify its position
(Market,size,share and growth)
(Degree of competition)
(Plsce within based on customer perception, also reputation)

Requirements of customers at present and in the future (new products/services)
(Change in price or incomes)
(New technologies)
(Changing taste and preferences)

Question 5

What is Price elasticity of demand?

Answer 5

percentage change in quantity demanded/percentage change in price

Measures the responsiveness of quantity demanded in regard to price

Question 6

What does price inelastic mean?

Answer 6

If a product is price inelastic then a firm knows that if it raises prices, quantity demanded will not fall by much(total revenue will increase)

Question 7

What does price elastic mean?

Answer 7

If a product is price elastic then if a firm raises its price , quantity demanded will fall by a lot (revenue will decrease)

Question 8

What does Income elastic mean ?

Answer 8

the percent change in quantity demanded divided by the percent change in income.

The responsiveness of quantity demanded in regards towards change in income

Question 9

What are the 3 types of goods?

Answer 9

Inferior goods
Luxury goods
Normal good