Matching Is a Method of Controlling Extraneous Variables That Involve

question 101

True/False

Matching is a method of controlling extraneous variables that involve matching test units on a set of key background variables before assigning them to the treatment conditions.

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Definitions:

Volume Maximization

A pricing objective that involves setting prices low to encourage a greater volume of purchases; also called penetration pricing.

Penetration Pricing

A pricing strategy aimed at entering a new market by setting a low price initially to attract customers and gain market share.

Escalator Clause

A section in a contract that provides for price increases if certain, specified conditions occur.

Loss-leader Pricing

A pricing strategy where a product is sold at a loss to attract customers, with the expectation they will make additional purchases of other items at regular prices.