Craig is a marketing manager for a construction supply company. If he queries his marketing databases to determine the effect of three different levels of price for a new product, he is using a(n)

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Question restatement: Craig, a marketing manager, queries his marketing databases to determine the effect of three different price levels for a new product. This process is categorized as a type of analysis in marketing research.

Option 1: problem search. This would involve identifying and defining the marketing problem to be studied, not the specific analytical method used to test price scenarios. It focuses on clarifying what needs to be solved rather than evaluating data under varying price points.

Option 2: sensitivity analysis. This choice describes examining how the output of a model or system responds to changes in input variables. In this context, testing three different price levels to observe effects directly aligns with sensitivity analysis, which analyzes how variations in price influence outcomes such as demand, revenue, or profit.

Option 3: action analysis. This term is generally about evaluating or selecting courses of action rather than systematically exploring the impact of different price levels. It emphasizes decision options and implementation rather than parameterized testing.

Option 4: situational analysis. This is a broader assessment of the external environment and current circumstances affecting a business, not a procedure for testing internal variable effects like price changes.

Option 5: environmental scan. This involves collecting information about external factors such as market trends, competitors, and macro forces. It does not describe a drill-down into the consequences of varying a single marketing variable like price.

In summary, among the given choices, the description that best fits querying a database to observe the effect of multiple price levels is a focus on how changes in price propagate through outcomes, which is characteristic of sensitivity analysis. The other options center on problem definition, decision-making actions, or external environmental assessment rather than the isolation and testing of a specific variable’s impact.

Craig is a marketing manager for a construction supply company. If he queries his marketing databases to determine the effect of three different levels of price for a new product, he is using a(n)

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