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Are Microeconomics and Statistics Any Useful For Market Research?

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VicFountain

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Hi guys.
I was wondering: has any of you benefitted from knowing microeconomics and statistics to do market research and to have a general idea of how profitable a market can be?

As I'm in university, I was wondering how I could apply what I study. Or are these a bunch of useless, impractical crap?
Thanks in advance.
 

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socaldude

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Yes the principles in these disciplines are useful and practical. You can use the principles in these sciences to predict markets.

Although i can understand your skepticism as when you learn these things in college its hard to tell if it can really be used in real life.

Im not a fan of academia nor do i despise it but it seems like they teach you how to memorize textbooks and take tests but not how to make money or how to self-actualize as a person.
 

Johnny boy

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Hi guys.
I was wondering: has any of you benefitted from knowing microeconomics and statistics to do market research and to have a general idea of how profitable a market can be?

As I'm in university, I was wondering how I could apply what I study. Or are these a bunch of useless, impractical crap?
Thanks in advance.
It's the most useful class I ever had.

When I signed up lawn care customers for my lawn care business, I noticed the lack of price elasticity in residential lawn care meant I had a much higher ROAS (return on ad spend) by raising prices and avoiding commercial properties. I measured factors that moved my supply and demand curves in or out, and which were the most effective changes to make in my business that would result in maximizing profit (while minimizing my effort and overall mistakes).

Otherwise, school was a joke and I would suggest dropping out.
 

Kak

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Micro is way more useful in business and helpful in investing.

Macro is more about understanding monetary policy of the government. Not that helpful in business, but a little helpful in investing.

I have never used advanced statistics in my business. Basic everyday statistics? Sure.
 

ZF Lee

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I have never used advanced statistics in my business. Basic everyday statistics? Sure.
+1
Sure as hell I won't be using OLS regression, simplex and ARIMA on a regular basis lol!

But simple hypothesis testing, and the role of benchmarks and cutoff points?
Yeah.

While it's the story behind the numbers that count, I sure won't be able to get any story at all, if I had nothing to check up on.
 

AgainstAllOdds

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It's the most useful class I ever had.

When I signed up lawn care customers for my lawn care business, I noticed the lack of price elasticity in residential lawn care meant I had a much higher ROAS (return on ad spend) by raising prices and avoiding commercial properties. I measured factors that moved my supply and demand curves in or out, and which were the most effective changes to make in my business that would result in maximizing profit (while minimizing my effort and overall mistakes).

Otherwise, school was a joke and I would suggest dropping out.
This.

Figuring out pricing is huge.

Also, the general thought process that micro impacts on you can do wonders.

When you start thinking of opportunity cost, etc., you'll make better use of your time and how you spend it. That decision making skill is essential to being successful.
 

NMdad

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Agree with comments about the value of understanding microeconomics for running your business.

As for statistics, it depends:
  • Probabilistic & expected-value thinking can be incredibly useful--especially for deciding whether to pursue opportunities.
  • Advanced statistical methods (e.g., regression, data mining, etc.) tend to be used more when you're building a data-as-a-service or doing quant-based investing (like Renaissance Technologies--which has generated billions of dollars using advanced statistics).
 

Martin.G

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Anyone knows any good book about micro? I always read a lot about macro, but almost nothing about microeconomics
 

Kak

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Anyone knows any good book about micro? I always read a lot about macro, but almost nothing about microeconomics
I would honestly find some kind of online course for it if I were you. iTunesU has a free course that seems VERY in depth from saylor.org

I am actually kind of shocked that you see more about macro than micro... Micro is almost totally built on the foundation of simple supply and demand and concepts like opportunity cost and elasticity.

Micro is SO much better than macro for business owners.
 
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Martin.G

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I would honestly find some kind of online course for it if I were you.

I am actually kind of shocked that you see more about macro than micro... Micro is almost totally built on the foundation of simple supply and demand.
I read a lot about macro because I really enjoy it, and not with a business purpose. I am going to start looking for an online course then, thanks.
 
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