Question
Exxon has asked for your advice about a research study to test consumer response to cash discounts. Specifically, Exxon has decided to test the effects
Exxon has asked for your advice about a research study to test consumer response to cash discounts. Specifically, Exxon has decided to test the effects of a 5% discount on cash purchases of gasoline. The test will be conducted at all Exxon stations in Pigeon Forge, Tennessee and Columbia, South Carolina. These stations will offer a 5% cash discount for six months. Sales (both cash and credit card) will be monitored before the discount is offered, and also while it is offered. If the results are favorable, the discounts will be introduced nationwide.
a. What is the independent variable?
b. What is the dependent variable?
c. Is this a lab or field experiment?
d. What are some potential extraneous variables that need to be controlled for?
e. Discuss whether this study would have higher internal or external validity and why.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started