A Study Was Conducted to Test the Effectiveness of Supermarket

question 56

Multiple Choice

A study was conducted to test the effectiveness of supermarket sales strategies. At one supermarket, the price level (regular, reduced price, and at cost to supermarket) and display level (normal display space, normal display space plus end-of-aisle display, and twice the normal display space) were tested to determine if they had any effect on the weekly sales of a particular supermarket product. Each of the combinations of price level and display level were put in place for a randomly selected week and the weekly sales of the product was recorded. Each combination was used three times over the course of the experiment. The results of the study are shown here: Identify the treatments used in this experiment.

• A) The three price levels used by the supermarket.
• B) The three display levels used by the supermarket.
• C) The nine combinations of price level and display level used by the supermarket.
• D) The weekly sales collected for each of the weeks.

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Definitions:

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unresponsive to changes in price.

Price-elasticity Coefficient

A measure of how much the quantity demanded of a good responds to a change in the price of that good, calculated as the percentage change in quantity demanded divided by the percentage change in price.

Advertised

The process of promoting products, services, or brands through various media channels to increase public awareness or sales.

Loyal Buyers

Individuals or entities consistently preferring and purchasing a particular brand or product over competitors, often influenced by satisfaction, habit, or perceived value.