Dependent vs. Independent Variables: What's the Difference?
Learn the dependent and independent variable definitions and how to keep them give examples of the variables in actual experiments, explain how to . the relationship between the dependent and independent variables. An independent variable in one context may be a dependent variable in another. Some variables have a circular relationship with sales. Here is a quick and easy definition of each one, along with some examples. Dependent Variable: This is the output variable you are really.
Dependent and independent variables are at the heart of this measurement, providing a scientific way to experiment with different strategies and tactics.
Independent Variables Independent variables are the controllable factors that marketing researchers use to influence changes in the values of dependent variables. The elements of the marketing mix -- price, product, place and promotion -- are independent variables, since marketers can intentionally alter these factors at any time.
Dependent Variable vs. Independent Variable in Marketing | bestwebdirectory.info
The purpose of a marketing mix strategy, and thus of marketing research, is to maximize the outcome of dependent variables by finding the perfect combination of values for independent variables. Alter as many independent variables as you can to discover impacts and interrelationships that you might not have expected.
Dependent Variables Dependent variables are uncontrollable in nature, and are directly influenced by changes in independent variables. Dependent variables can includes metrics such as sales revenue, sales growth, new-customer inquiries, same-store repeat sales, and the average size of transactions.
The outcomes of dependent variables reveal whether certain strategies are more or less effective than others, allowing companies to invest in the most effective ideas. Measure a set of chosen dependent variables that most directly influence your strategic marketing goals.Identifying Independent and Dependent Variables
Testing Independent Variables When testing the outcome of independent variables on a given dependent variable, it can be useful to change a single independent variable at a time to more clearly see the impacts of each on the dependent outcome. Consider the independent variables of product, place, promotion and price, and their impact on the dependent variable of sales revenue, for example. They affect the cost structure of a small business, but the owner cannot change market wage rates or rental rates by himself.
Economy Economic variables affect business profitability. The income of individual customers and profits of business customers are independent economic variables that affect overall business performance.
Dependent Variable vs. Independent Variable in Marketing
During a recession, customers earn and spend less, which leads to declining business sales. Conversely, during a period of economic growth, customers earn and spend more, which increases business sales and profits.
The interest rate on a bank loan or line of credit is an independent variable because it affects expenses and profits. However, the borrowing needs of a small business do not change interest rates.
Dependent vs. Independent Variables: What’s the Difference?
Dependent Variables In the business context, profit is a dependent variable because it depends on the economy, sales and expenses. Product quality depends on the manufacturing and design processes.
The number of employees laid off during a recession depends partly on declining business revenues. Government tax revenue depends on customer income, business profits, capital gains and other variables. What Are Independent and Dependent Variables?
His work has appeared in various publications and he has performed financial editing at a Wall Street firm.