In Testing the Consumption of Tortilla Chips,a Company Discovers That

question 33

Multiple Choice

In testing the consumption of tortilla chips,a company discovers that many consumers will eat an entire five-ounce bag in one sitting.What additional knowledge of consumers' usage could increase the company's sales?

• A) New biodegradable packaging is developed to appeal to an environmentally conscious segment of consumers.
• B) Humorous advertising campaign increases awareness of the brand.
• C) Research shows that consumers will also eat a seven-ounce bag in one sitting.
• D) Tests determine that increasing the size of the logo on the package better connects the product with advertisements.
• E) Small drops in price bring large increases in sales.

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Definitions:

TIPS

Treasury Inflation-Protected Securities, a type of U.S. government bond designed to help protect investors from inflation, as the principal value adjusts with inflation.

PIKs

Short for "Payment in Kind," a type of financing or loan where the borrower can pay interest or dividends with additional securities instead of cash.

Mortgage Bond

A type of bond secured by a mortgage on one or more assets, offering the bondholder a claim against the assets in case of default.

Securities

Financial instruments that represent an ownership position in a corporation (stocks), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.