Diane Owns a Bakery Where She Sells Cupcakes

question 41

Multiple Choice

Diane owns a bakery where she sells cupcakes.Two blocks down there is another bakery,CC's Bakery,that sells cupcakes for $1 less than Diane.Diane decides to lower her price and match CC's Bakery prices.What type of pricing strategy is Diane implementing?

• A) Internal pricing
• B) Profit-oriented pricing
• C) Competitor-oriented pricing
• D) Customer-oriented pricing
• E) Sales-oriented pricing

---

Definitions:

Random Assignment

A process used in experimental designs to assign subjects randomly to either the treatment group or the control group, ensuring that each participant has an equal chance of being placed in any group.

Equivalent

Equal in value, function, or meaning.

Confounding Variables

Variables that are not the primary interest of a study but can influence the outcome, making it difficult to establish a clear cause-and-effect relationship.

Independent Variable

A variable that is manipulated or changed in an experiment to determine its effect on the dependent variable.