What Are Decision Variables in Marketing?
Decision variables, also known as decision levers, are the elements that have the power to influence decisions made in marketing. These variables are typically used to identify and define the target market and to develop marketing strategies for the product or service that is being sold. Decision variables in marketing can include:
- Price
- Product features
- Distribution
- Promotion
- Advertising
- Advertising frequency
- Packaging
- Service
Each of these variables has the power to influence a customer’s decision to purchase a product or service. For example, the price of a product can influence whether or not a customer decides to buy it. Similarly, the features of a product can influence whether or not a customer chooses to purchase it. The decision variables used in marketing can vary depending on the product or service being sold. For example, a company selling a luxury product may focus on price and product features, while a company selling an everyday item may focus on distribution, promotion, and advertising. By understanding and utilizing decision variables in marketing, companies can better target their customers and develop more effective marketing strategies to increase sales.
Conclusion
Decision variables are the elements that have the power to influence decisions made in marketing. These variables can include price, product features, distribution, promotion, advertising, advertising frequency, packaging, and service. By understanding and utilizing decision variables in marketing, companies can better target their customers and develop more effective marketing strategies.