Business F MBA 4th Q1

What is the significance of demand analysis in business?

• Demand analysis is only useful for large corporations.

• It primarily focuses on employee satisfaction.

• Demand analysis is significant as it informs strategic decision-making, optimizes resource allocation, and enhances customer satisfaction.

• Demand analysis is irrelevant in a stable market.

List three key determinants of demand.

• Consumer preferences, income levels, prices of related goods.

• Advertising strategies

• Weather conditions

• Government regulations

How does the elasticity of demand affect pricing strategies?

• Elasticity of demand only affects supply, not pricing.

• Pricing strategies are solely based on production costs.

• Elasticity of demand has no impact on pricing strategies.

• Elasticity of demand influences pricing strategies by determining whether to raise or lower prices based on consumer sensitivity.

Explain the relationship between revenue and profit for a firm.

• Revenue is always greater than profit.

• Profit is the difference between revenue and expenses.

• Profit is calculated by adding revenue and expenses.

• Profit is the total revenue generated by a firm.

What are the main steps in estimating demand?

• Identify competitors

• Set pricing strategy

• Develop marketing plan

• Define market, gather data, analyze trends, forecast demand, validate forecast.

Describe the purpose of demand forecasting.

• To analyze past sales data for marketing strategies.

• To evaluate employee performance in sales departments.

• To determine the best pricing strategy for products.

• The purpose of demand forecasting is to predict future customer demand to optimize inventory and resource management.

Name two common forecasting techniques used in demand analysis.

• Regression analysis

• Time series analysis, Causal, Moving Average, delphi Method

• Market segmentation

• Qualitative forecasting

Who are the typical users of demand forecasts?

• Human resources managers

• IT support teams

• Supply chain managers, sales teams, financial analysts, marketing teams. consumers, marketing researchers

• Customer service representatives

What factors can lead to a shift in the demand curve?

• Changes in weather patterns

• Technological advancements in manufacturing

• Factors that can lead to a shift in the demand curve include changes in income, consumer preferences, prices of related goods, future price expectations, and the number of buyers.

• Government regulations on production

How does consumer behavior influence demand elasticity?

• Consumer preferences are irrelevant to price sensitivity.

• Demand elasticity is solely determined by production costs.

• Consumer behavior has no effect on demand elasticity.

• Consumer behavior influences demand elasticity by affecting how sensitive consumers are to price changes.