Which of the following, if true, strengthens the case for Stardust ‘n’

QUESTION

Which of the following, if true, strengthens the case for Stardust ‘n’ Clay to begin developing organic beauty products?

A) Retailers report a consumer preference for inexpensive skin-care and beauty products that do a better job than the ones currently available.
B) Organic raw materials sourced from economically weak countries provide a source of livelihood for the local population.
C) Organic raw materials for such products can be sourced from developing countries at a lower cost.
D) The first mover in this industry is witnessing reasonable growth.
E) A growing number of women 18–34 consider the health impact of chemicals found in a beauty product when making a cosmetics purchase decision.

ANSWER

Answer: E
Explanation: E) Stardust ‘n’ Clay sees many potential advantages in marketing organic beauty products. Are there enough people interested in the product to make the higher production costs worthwhile? Choice E suggests there are, indicating that young women—a large cosmetics market—care about the chemicals in their beauty products. Choice A does not say much about organic products. Also, organic products are expensive to manufacture and offer higher margins. In other words, they are more expensive than nonorganic beauty products. Choice B explains how a new Stardust ‘n’ Clay line of organic beauty products might benefit people in economically weak countries, but it tells us nothing about whether the line would benefit Stardust ‘n’ Clay. Choice C provides general information about raw material sourcing for the proposed line. This is not an absolute advantage for Stardust ‘n’ Clay, as the same conditions apply to competitors. Choice D only tells us that the first mover in the market has seen “reasonable growth.” This first mover might very well be a small niche marketer. Stardust ‘n’ Clay is a mass marketer, so reasonable growth to a smaller company may be insignificant to Stardust ‘n’ Clay.