MKT 300 Chapter Notes - Chapter 4: Conjoint Analysis, Cluster Analysis, Brand Valuation

• School: Ryerson University
• Department: Marketing
• Course: MKT 300
• Professor: Armand Gervais

Document Summary

Effective marketing comes from customer knowledge and an understanding of how a product fits customers" needs. Test markets and volume projections enable marketers to forecast sales by sampling customer intentions through surveys and market studies. By estimating how many customers will try a new product, and how often they"ll make repeat purchases, marketers can establish the basis for such projections. Trial rate: the percentage of a defined population that purchases or uses a product for the first time in a given period: trial rate (%) = first time triers period t( ) First time triers in period t: the number of customers who purchase or use a product or brand for the first time in a given period: first time triers in period t = total population (#) * trial. Penetration t (#) = [penetration in t-1 (#) * repeat rate period. Rate (%) t (%)] + first time triers.