Posted in Marketing and Strategy Terms, Total Reads: 173
Definition: Cause and Effect
The Cause and Effect relationship between two events is a type of relationship where the effect is the result of the cause. In other words, the cause can be said to be responsible for the occurrence of the effect.
The cause part answers the question “why did an event happen”?
The effect part answers the question “what happened as a result”?
Causes in general can be of three types- Necessary causes, sufficient causes and contributory causes.
Necessary Cause: If an event a is a necessary cause of the event b, and it is known that the event b has occurred, then it means that that the event a has also occurred, ie, the occurrence of the event a is necessary, given that the event b has also occurred.
Sufficient Cause: If an event a is a sufficient cause of the event b, and it is known that the event a has occurred, then it can be inferred that the event b has also occurred, ie, the occurrence of the event a is sufficient to infer that event b has occurred.
Contributory Cause: A contributory cause is just one among the many causes that contribute to the occurrence of the event.
For example: If an increase in advertising expenditure causes an increase in sales revenues, it is called a cause and effect relationship.