When the Economy Is Characterized by High Inflation,special Pricing Tactics

question 62

Essay

When the economy is characterized by high inflation,special pricing tactics are often necessary.One popular cost-oriented tactic is culling low-profit margin products from the product line.Why might this tactic backfire? What two other cost-oriented tactics can be used to guard against inflation? Describe these tactics.

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Definitions:

Random Assignment

The process of allocating subjects randomly to experimental and control groups in a study to ensure that each participant has an equal chance of being assigned to any group, thus reducing bias.

Correlational Studies

Studies in which the investigator analyzes the relationships among variables that were in place before the study, without manipulating those variables.

Placebo Effects

Observable or measurable changes in health or behavior resulting from the administration of a placebo, demonstrating the power of belief and expectation in the healing process.

Double-blind

A study design in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias in the results.