In a Pepsi Project the Researcher Is Interested in Examining

question 69

Multiple Choice

In a Pepsi project the researcher is interested in examining the effect of humor and the effect of various levels of brand information on advertising effectiveness.Three levels of humor (no humor,some humor,and high humor) are to be examined.Likewise,brand information is to be manipulated at three levels (low,medium,and high) .The resulting table would be three rows (levels of information) by three columns (levels of humor) ,producing nine possible combinations or cells.The respondents would be randomly assigned to one of the nine cells.Respondents in each cell would receive a specific treatment combination.After exposure to a treatment combination,measures would be obtained on attitudes toward Pepsi advertising,brand,and the celebrity from respondents in each cell.To which category of design does this fall into?

• A) statistical regression design
• B) recombinant design
• C) static group design
• D) one-shot case study
• E) factorial design

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Definitions:

Short Run

A period in economic analysis during which some factors of production are fixed, allowing only some inputs or operations to be adjusted.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on what the seller believes each customer can afford or is willing to pay.

Non-price Competition

A market strategy in which a company tries to distinguish its product or service from competing products on the basis of attributes like design and workmanship instead of lowering prices.

Monopolistically Competitive Firm

A company that operates in a market with many competitors that sell products or services which are not perfect substitutes, allowing for some degree of market power.