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:

Personal Savings

The portion of an individual's income that is not spent on consumption and is set aside for future use.

Credit Union

A financial institution that is owned and operated by its members, focusing on providing credit at competitive rates as well as other financial services.

Maturity Value

For an interest-bearing note, it is the sum of the face value (principal) and the interest dollars: MV = P + I.

360-Day Year

An accounting assumption that simplifies interest calculations by using a year composed of twelve 30-day months.