DECA Sports and Entertainment Marketing Practice Exam

What defines a cohort in market research?

1. A method of data analysis

2. A group of people who share certain characteristics

3. A technique for projecting future trends

4. An audience segment based on purchasing behavior

The correct answer is: A group of people who share certain characteristics

A cohort in market research refers to a group of individuals who share specific characteristics, often defined by a common experience, demographic, or behavior. This approach allows researchers to analyze the behaviors and outcomes of these individuals over time. For instance, a cohort could consist of all individuals born in the same year, all attendees of a particular event, or those who started using a product at the same time. By studying cohorts, businesses can understand how certain factors influence behavior, preferences, and trends within a defined group, leading to more targeted marketing strategies and better product development. In contrast, the other answer choices represent different concepts related to market research but do not capture the essence of what a cohort is. A method of data analysis refers to how data is examined, while a technique for projecting future trends focuses on forecasting rather than grouping individuals. An audience segment based on purchasing behavior narrows the focus to consumers' buying patterns rather than characteristics shared among a cohort. Overall, defining a cohort as a group of people with shared characteristics is essential for conducting effective market research that analyzes behavior over time.