market analysis Flashcards
what are the different ways you may be asked to analyse data?
pie charts, bar charts, histograms, index numbers
define quantitative data.
based on numerical information that can be statistically analysed.
define qualitative data.
based on information about emotions, opinions and motivations
what can quantitative data tell a business?
demographics, segments within target market, cashflow, market size.
what can qualitative data tell a business?
motivations to buy products, customer views on competitors, feelings towards marketing campaign.
what is elasticity?
responsiveness of demand to change in relevant variable. eg price or income.
what does it mean if price elasticity is between 0-1?
inelastic - demand changes by a smaller percentage than price.
what does it mean if price elasticity is 1+?
elastic - demand changes by a larger percentage than price.
overall impact of of an elastic price?
overall revenue increases with price decrease. overall revenue fall with price increase.
overall impact of an inelastic price?
overall revenue falls with price decrease. overall revenue increases with price increase.
five factors affecting price elasticity of demand?
time (long term price changes), availability of substitutes, brand loyalty, necessity, habit
what does a positive answer mean when interpreting
income elasticity of demand?
normal and luxury goods, demand increases as incomes increase and vice versa.
what does a negative answer mean when interpreting income elasticity of demand?
inferior goods, demand decreases as incomes increase and vice versa.
what answer makes a good income elastic?
1+.
what answer makes a good income inelastic?
0-1.
