Exam 4: Techniques for Understanding Consumer Demand and Behavior

Price elasticities tend to be higher,the greater the number of substitutes.

An estimated regression coefficient is 10 with a standard error of 5.The null hypothesis is that the partial regression coefficient equals zero.What is the value of the t-statistic for testing the null hypothesis of the regression coefficient?

An approach to analyzing consumer behavior in which consumer reaction to different prices is analyzed in a laboratory situation or a test market is called:

Data collected on a sample of individuals with different characteristics at a specific point in time are called:

Reliance on expert opinion to predict consumer behavior has the advantage of being a relatively low cost approach to gathering information.In many situations,however,it is subject to several sources of bias that can undermine its reliability.

Which of the following approaches to understanding and predicting consumer behavior provides the most insight into how consumers can be expected to respond in an actual market setting?

When using expert opinion,consumer surveys,test marketing,and price experiments to analyze consumer behavior,managers must consider whether the participating groups are representative of the larger population.