What Is the Purpose of a Market-Tracking Study

question 37

Multiple Choice

What is the purpose of a market-tracking study?

• A)to determine if consumers switched brands from one time period to the next
• B)to measure some variable of interest,such as market share or unit sales over time
• C)to determine the relationship among several variables
• D)to search for and interpret existing information relevant to the research problem
• E)to keep up with changes competitors are making in their marketing mixes

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Definitions:

Fixed Expenses

are costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.

Variable Expenses

Costs that change in proportion to the level of production or sales activity.

Contribution Margin Ratio

A financial measure that gauges the proportion of sales revenue that exceeds variable costs, indicating how much revenue contributes towards covering fixed expenses and generating profit.