Document Type

Student Research Paper


Dr. Hongsong Neuhauser

Publication Date

Spring 2020




This research is a case study on the effects of a price increase on confectionery products. The case will follow a major candy manufacturer to unveil how the increase in price has affected the company’s revenue and units sold. The price increase has also made retailers have to break certain psychological price barriers, like $0.99, in order to keep their margins. This research seeks to find the importance consumer place on these price barriers as well as the effect of a price increase on financial performance.

This research provides a better understanding of the confectionery business using information from the IRI/Nielson database. Based on the sales and competitors' information for the entire confection category, this study analyzes the company's financial statements trailing the price increase for two consecutive fiscal quarter, so to compare the company’s performance with the others in the same industry. The study is intended to contribute the literature in the price elasticity of a relatively inexpensive and impulsive item.


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