Blind Taste Tests in the 1980s Showed That Most Coke

question 47

Essay

Blind taste tests in the 1980s showed that most Coke drinkers preferred a cola that was sweeter than the current product. When Coca-Cola attempted to make its product sweeter, brand loyal customers revolted and demanded the old product be returned. Explain how Coca-Cola marketers could have used the principles of psychophysics to introduce the new Coke without creating these problems.

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Definitions:

Indirect Expense

Costs that are not directly tied to a specific product or service, such as utilities or rent for a company.

Insurance

A financial product that provides protection against losses or damages, in exchange for premium payments.

Departmental Income Statement

An income statement that shows the financial performance of different departments within a company.

Net Income

The total profit of a company after all revenues and gains are accounted for and all expenses and losses are deducted.