CS Market Research & Analysis 3

Question 1

Which analytical framework helps a strategist evaluate the attractiveness of a market by examining supplier power, buyer power, competitive rivalry, substitutes, and new entrants?

Accepted Answer

Porter's Five Forces

Answer

Porter's Five Forces model assesses industry structure and profitability potential through five competitive forces that shape every market.

Question 2

A strategist notices that two variables — ad spend and sales volume — have a correlation coefficient of 0.91. What conclusion is MOST appropriate?

Accepted Answer

There is a strong positive association between ad spend and sales volume

Answer

Correlation measures association strength but does not establish causation; additional analysis (e.g., regression, controlled experiments) is needed before claiming a causal link.

Question 3

What distinguishes a leading indicator from a lagging indicator in market analysis?

Accepted Answer

Leading indicators predict future performance; lagging indicators confirm past trends

Answer

Leading indicators (e.g., consumer confidence, new orders) signal future market direction, while lagging indicators (e.g., GDP, unemployment) confirm trends after they have occurred.

Question 4

A company is entering a market with few comparable products. Which market sizing approach is MOST appropriate?

Accepted Answer

Top-down analysis using analogous market data and proxy metrics

Answer

When direct market data is scarce, top-down analysis using analogous markets or proxy metrics provides a reasonable baseline estimate for a nascent market.

Question 5

Which research design is BEST suited to establish causality between a marketing intervention and consumer behavior?

Accepted Answer

Randomized controlled experiment (A/B test)

Answer

Randomized controlled experiments (A/B tests) isolate the effect of a single variable by randomly assigning subjects to treatment and control groups, enabling causal inference.

(CS) Certified Strategist Practice Test

(CS) Certified Strategist Practice Test

CS Market Research & Analysis 3