When a marketing researcher designs a test market study in two cities in which the price of one of its products in increased by five percent in one of these cities but is not increased in the other city to determine the impact of this price change on the product's profits,price is:
A)the dependent variable.
B)the moderator variable.
C)the independent variable.
D)the spurious variable.
E)the outlier variable.

Question

Quizplus · Accepted Answer

Price is being manipulated in one city and not in the other, which makes it the independent variable in this study. The researcher is testing how this change in price affects profits, making profits the dependent variable. The other options (B, D, E) are not applicable in this scenario.

When a Marketing Researcher Designs a Test Market Study in Two