A Marketer of Yo-Yos Wants to Know How an Increase

question 67

Multiple Choice

A marketer of yo-yos wants to know how an increase in price will affect its sales. It uses a test store where it increases the price of the yo-yos by fifteen percent and then studies its impact on sales. Comparing its sales in the test store with those in other stores provides information about the likely impact of a price change in the overall market. Identify the type of market research method most likely used in this scenario.

• A) Experimental research
• B) Mathematical modeling
• C) Observational research
• D) Focus group

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Definitions:

Reciprocal Method

An accounting method used for allocating costs between interdependent departments, accurately reflecting the shared services costs.

Mutual Provision

Mutual provision relates to the sharing or exchange of services, resources, or benefits between parties, often within a cooperative or collaborative framework.

Support Department Cost Allocation

The process of distributing indirect costs from support departments, such as Human Resources or IT, to operational departments or product lines.

Dual Cost Allocation

A method of cost allocation that involves assigning costs to two or more objects without arbitrarily dividing them.