|Question 8Verbal

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The Lego Group's introduction of the Legoland theme park in 1968 is a quintessential instance of brand extension-the company leveraged its brand recognition as a toy manufacturer to enter a product category where it had not previously competed. An outstanding question is whether perceived category similarity predicts consumers' likelihood of purchasing brand extensions. To answer this question, Alicia Grasby et al. identified 30 extended-brand pairs (e.g.. the same brand of wristwatch and necktie) in 52 weeks of purchases by approximately 60,000 households and, for each pair, calculated the change in probability of a brand in one category being purchased if the same brand was purchased in the other category.
Based on the text, which potential study design would be most likely to produce evidence that would enable Grasby et al. to answer their research question?
Have a representative sample of the households rate the similarity of the product categories in each extended-brand pair, then determine how, if at all, those rating correlate with the change in probability that the team calculated for each pair.
A
Poll a representative sample of the households to determine the degree of brand recognition for each brand in the extended-brand pairs, then determine how, if at all, the degree of brand recognition correlates with the frequency with which a different group of households purchased at least one product of that brand.
B
Poll a representative sample of the households to determine the degree of brand recognition of each brand in the extended-brand pairs, then determine how, if at all, the degree of brand recognition correlates with the average cost of each product in the pairs.
C
Have a representative sample of the households rate the similarity of one product in each extended-brand pair to other products in the same category. then determine how, if at all, those ratings correlate with the change in probability that the team calculated for each pair.
D