Friendship is a national manufacturer and distributor of greeting cards. The company has recently begun distributing a low-priced line of cards using a lower-grade paper. Quality differences between the higher- and lower-priced cards do not seem to be noticeable to consumers. The company follows a policy of printing its name and the price on the back of each card. The initial acceptance of the new line of cards has convinced the vice president of production, Sheila Howell, that the company should use this lower-grade paper for all its cards and increase its profit margin from 12 percent to 15 percent. The sales manager is strongly opposed to this move and has commented, "Sheila, consumers are concerned about the quality of greeting cards; a price difference of 5 cents on a card does not matter." The vice president has called upon you to undertake the study.
Should the communication or the observation method be used in this situation? Justify your choice.
Problems 3 and 4 could be assigned to pairs of students, with one student answering Problem 3 and the other answering Problem 4. The students could then compare their results and discuss the advantages and disadvantages of structure in observational research.