ques1 - aforementioned, better-for-you version of Pepsi)...

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Kathy Tao Econ 101 Sect 23 Question of the Week #2 The saying “Put your money where your mouth is!” essentially points out that there is not always cohesion between what people (or, in this case, consumers) say and what they actually do (specifically, what they actually risk, such as the purchasing power of money). Many businesses rely upon consumer polls, surveys, and other forms of research in order to gain a better sense of consumer tastes and preferences, so they can ensure that their products sell. However, what people indicate on surveys and polls may not necessarily indicate their true preferences, as another similar saying, “Talk is cheap” points out (since the cost of talking, or answering these questions, is relatively small—a few minutes of time—it is easy to say things without really meaning them). For instance, though most people may have said they would purchase a version of Pepsi soda that was caffeine-free and clear (which would not stain the teeth), when Crystal Pepsi (the
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Unformatted text preview: aforementioned, better-for-you version of Pepsi) actually came out, the reality was drastically differentsales of Crystal Pepsi quickly fell after its first year. Markets thus provided a better indicator of consumers true preferences, since moneya powerful indicator of what is truly important to uswas spent on items other than Crystal Pepsi (like regular, caffeinated Coca Cola). Conversely, there are items that very few consumers would admit to preferring, as shown by negative responses in surveys, but sell remarkably well. For instance, while many people would say they prefer reading a newspaper, such as the Chicago Sun-Times, over a trashy tabloid magazine, markets show that the reality is otherwise: newspaper sales are flagging, while trashy tabloids retain strong sales (as some celebrity, somewhere, is always self-destructing, getting married, having a baby, going to jail, getting a divorce, and then repeating the cycle)....
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