Forum 2, Part 3_Group 2.docx - BUSI 600-D12 u2013 Group 2...

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1 BUSI 600-D12 – Group 2 – Forum 1 Discussion Board Forum 2 Chapter 3, Question 5 As businesses constantly seek to improve profits and sales, consumer and market research plays an integral role in providing necessary data to turn these figures into models, which can provide meaningful insight to decision makers. In this case, an automobile business has noticed the desire for its brand is directly correlated to per capita income. This hypothesis is supported by studies, which show as America’s consumption per capita continues to increase. As personal income rises, consumers will purchase more reusable and disposable goods (McCollough, 2007). In addition to this correlation, the car business has also observed higher sales, when interest rates were lower and the consumer purchasing patterns are dependent on age and gender. Competitor factors such as discounts, various competitive models, advertising, and promotions also seem to play a random role in contributing to the sales of these automobiles. While attempting to determine if the sales of the cars are related to consumer per capita income, it is necessary to first pinpoint the various variables and determine their effect. Variables are referred to as constructs, or the property being studied. They are symbols of events, characteristics, traits, acts, or attributes that could be quantified; they could also be assigned specific values (Cooper & Schindler, 2014). When researching trends, a great emphasis is placed on whether the variables are related either dependently or independently. A dependent variable is predicted, measured, or monitored and expected to be impacted by an independent variable, which is used and manipulated by the researcher in a way which causes an effect on the dependent variable (Cooper & Schindler, 2014). Usually there are several independent variables and while somewhat correlated, they may not be independent among themselves. There is at
2 BUSI 600-D12 – Group 2 – Forum 1 least one dependent variable and one independent variable in a relationship and in most cases the dependent variable is the result of the independent variable (Cooper & Schindler, 2014). In this case, the rise in the automobile sales would be the direct variable contributed to the indirect variable of the buyer’s per capita income. An increase of income and the reduction to interest rates would be a good prediction or stimulus pertaining to the measured outcome of sales. There are usually other variables which need to be considered in these scenarios including second independent variables, or moderating variables, and extraneous variables, which could also impact a relationship. These types of variables tend to be measurable and observed, but intervening variables can also affect the dependent variable and can not be observed or has not been measured (Cooper & Schindler, 2014). Often the dependent variables of financial performance are the primary focus of research, however to reach the full benefits, there needs to

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