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Friendship is a national manufacturer and distributor of greeting cards. The company has recently begun distributing low-priced line of cards using and lower-grade paper. Quality difference between the higher and the 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 the 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% to 15%. 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 approach method be used in this situation? Justify your choice.
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