Question

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

Answer 1

Answer: Causal

Explanation: Causal research refers the research which focuses on analyzing the cause and effect relationship. In such researches the researcher tries to observe the change in main variable that is causing the change in other variables.

In the given case, Vernon is changing the price of the product to ascertain the impact of it on the sales made. Thus, they they are trying to study the relationship between price and sales.

Hence from the above we can conclude that the correct option is C.