Hershey Corporation Wants to Add Additional Chocolate Kisses to Each

question 65

Multiple Choice

Hershey Corporation wants to add additional chocolate kisses to each bag of its popular candy while keeping the current price constant. Hershey wonders if the additional candies would cause sales to increase enough to offset the higher costs. What type of primary data research should the company use to answer this question.

• A) Conduct focus group interviews in a laboratory setting.
• B) Use telephone interviews with current and potential customers.
• C) Use observation research.
• D) Use experimental research.
• E) Use mail surveys with current customers.

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Definitions:

Home Currency Approach

A method of evaluating foreign investments or earnings by converting them into the investor’s domestic currency.

Foreign Currency Approach

It refers to the methodology used in financial analysis or accounting to evaluate transactions and operations in currencies other than the primary currency of the entity.

Capital Budgeting

The process used by organizations to evaluate and select long-term investments that are in line with the firm's goal of wealth maximization.

Uncovered Interest Parity

A theory suggesting that the difference in interest rates between two countries is equal to the expected change in their exchange rates.