53 research outputs found

    Simplified Data Analytics for the Accurate Evaluation of a New Venture’s Market Potential

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    This article examines the creation of an accurate market projection designed with easy-to-use, cost-effective data analytic techniques. Many of the techniques explored are derived from the subdisciplines of decision support and data warehousing found in the information technology arena. Two significant contributions are presented: a simple mathematical technique that eliminates the need for heuristics, and the simplification of the process to the point where no computer or sophisticated statistical analysis is needed

    The Arbitrary Coherence Effect and Decision Making

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    In Behavioral Economics, “arbitrary coherence” is when an arbitrary, randomly chosen number, influences the amount purchasers are willing to pay for a product. Arbitrary coherence is similar to anchoring which marketers sometimes use to help set optimal prices. This paper examines how the arbitrary coherence effect influences individual decision making

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    Part of the Entrepreneurial and Small Business Operations Commons, and the Management Sciences and Quantitative Methods Commons

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    T his article examines the creation of an accuratemarket projection designed with easy-to-use, cost-effective data analytic techniques. Many of the tech-niques explored are derived from the subdisciplines of deci-sion support and data warehousing found in the informa-tion technology arena. Two significant contributions are presented: a simple mathematical technique that elimi-nates the need for heuristics, and the simplification of the process to the point where no computer or sophisticated statistical analysis is needed. One question that continues to challenge entrepreneurs is how to determine the market potential for a new product or service, especially a product or service that is unique in the marketplace. Many view the process as putting some num-bers on a sheet of paper and calling it a sales forecast. Investors, bankers, venture capitalists, even “family, friends and fools,”often view such projections more as wishful think
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