Answer to Question #126331 in Economics of Enterprise for Momna

Question

Coca-Cola Company introduced New Coke largely because of Pepsi’s success in taste tests head to head with Coke Classic. Consider the following hypothetical information: (1) In blind taste tests, 58 percent of subjects preferred Pepsi to Coke Classic; (2) in similar tests, 58 percent of subjects preferred the taste of New Coke to

Pepsi. From these findings, what can Coca-Cola’s management conclude about consumers’ preferences between Coke Classic and New Coke

Answer 1

From these findings, Coca-Cola’s management can conclude that most consumers prefer New Coke to Coke Classic.