Application Question3 Week 2(Forum 2)

Application Question3 Week 2(Forum 2) - brand of the same...

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Application Question #3 Explain what types of biases arise in different approaches to understanding consumer demand and behavior. Understanding the consumer’s demand and behavior depends on varying factors. These factors are all taken into consideration when marketing decisions are made and how it impacts the future demand of the consumer. Expert Opinion – As an example of this, we’ll use the sales personnel at a car dealership. If a company would like to know what the future demand of a specific type of car may be in the future as sales individuals can offer incentives and to some extent sway the decision of the consumer. Consumer Surveys –This type of approach is the most cost efficient of all of the approaches mentioned in the textbook. Surveys are issues to the consumer to analyze the reaction to prices and price changes. The surveys are simple, direct and ask questions that might target the price that a consumer is willing to spend on a good or service, and at what change in price would the consumer consider switching to another
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Unformatted text preview: brand of the same service. • Test Marketing and Price Experiments – This method allows the company to study how the consumer handles, uses and repurchases their product and gives in sight to the size of the market. Price experiments are instances where the company sends product catalogs with varying product pricing to different regions, by doing this the company can see how each region responds to the pricing of their product. • Analyses of Census and Other Historical Data – Using this type of data a company can really pinpoint the success of their product whether it be by providing a service that’s exclusive to a region or by building a store at a location where the business is bound to thrive. • Unconventional Methods – By using unusual but directed marketing techniques such as attending events where employees of a company can interact with consumers in a neutral environment to analyze the habits and behaviors of the consumer....
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