Question
John is the Product Manager of the Tsakmakis brand of potato chips. A recent shortage of potatoes in the region has caused the price of
John is the Product Manager of the Tsakmakis brand of potato chips. A recent shortage of potatoes in the region has caused the price of potatoes to rise. Consequently, Tsakmakis' profit margins are falling, and therefore John is thinking about increasing the cost of potato chips packs. However, his colleague Bill believes that consumers in the snack industry are price-sensitive. Any increase in the price will be detected by the consumers and could result in lower sales for the company. They both realize that they do not know how consumers will react. They decide to hire a research firm and get some answers. In the meeting, John said to the researchers: We want to know how well known our brand is and how our quality is perceived compared to our competitors' quality. Can we do such a research project?
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