A Ranch Salad Dressing Manufacturer Has Developed a New Recipe

question 42

Multiple Choice

A ranch salad dressing manufacturer has developed a new recipe for its ranch dressing and is planning a consumer taste test. Researchers in the test kitchen want to measure whether there is a
Difference in consumer opinions between the old recipe and the new recipe. Company researchers
Believe that consumer reaction to the new dressing will depend on gender so they decide to block
On gender. To do this, they create blocks for female adult consumers and male adult consumers.
They then randomly assign subjects in each block to taste dressings using the new and old recipe.
Following the taste test, participants respond to a questionnaire about the dressings they tasted. Is
This an effective design for this study?

• A) Yes
• B) No

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Definitions:

Transaction Costs

Expenses incurred during the process of buying or selling goods and services that are not directly related to their price.

Negative Externality

A cost that is suffered by a third party as a result of an economic transaction.

Externalities

Occurs when the consumption or production of a good affects someone who does not directly consume or produce that good, which can be either positive or negative.

Costs

Expenses incurred in the production of goods or in the provision of services, including labor, materials, and overheads.