Price Elasticity Test Flashcards
Price elasticity of demand
Measures how responsive the demand is to change in the price, all of the factors constant
Income elasticity of demand
This is how responsive the demand is to changes in income, all other factors are constant
Price elastic
Means that the demand for a product is sensitive to changes in price. ( not good to move the price around )The percentage change in quantity is is greater than the percentage change in price
Price in elastic
Means that the demand for a product is not very sensitive to changes in price. (Customers won’t be affected if the price is changed around) The percentage change in quantity is less than the percentage change in price
Market research
Is gathering analysing and producing information about the specific market. For example profile and number of customers in the market and analysis of competitors already operating in the market
Target population
Isall the items or people that are relevant to the market being undertaken for example a business might be interested in all 16 to 18-year-olds in the UK
Primary research or Field research
Collection of first-hand original data that did not exist before
Secondary research or desk research
Is research that has already been undertaken by other organisations
Quantitive research
Is research that produces new local data e.g. sales figures or percentages
Qualitative research
Research that produces non-numerical data in forms of words such as Ideas feelings emotions or suggestions
Sample
It’s a subgroup of the target population people selected for the sample must be representative of the entire target population
Focus group
Is a small sample of people representative of the entire target population selected to provide qualitative data for example to brainstorm a business or product name
Market mapping
Analyses market conditions to identify the position of one product or brand relative to others in the market in terms of given criteria
Correlation
Statistical technique to establish the strength of the relationship between two sets of values
Extrapolation
Using previous patterns of new local data in order to predict values in the future
Confidence level
Is the probability that the research findings are correct
Confidence interval
Is the possible range of outcomes for a given confidence level for example you may have a 95% confidence level of the sales will be between 500,000 and £700,000
Big Data
Refers to the large and complex data sets. This has been difficult to analyse in the past but improvements in technology is making the use of big data more feasible
