Vernon Inc. would like to set the best price for a new product. The firm conducts an experimental study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of ________ research.
A) exploratory
B) descriptive
C) causal
D) focus group
E) ethnographic

Question

Quizplus · Accepted Answer

The experimental study conducted by Vernon Inc. to see if a lower price results in better sales is an example of causal research. Causal research is used to determine cause-and-effect relationships between variables, and in this case, the variable being manipulated is the price of the product. By comparing sales at two different prices, the firm can determine the impact of price on sales, therefore establishing a causal relationship.