A Stardust ‘n’ Clay product line manager is critical of the organic pr

QUESTION

A Stardust ‘n’ Clay product line manager is critical of the organic product line proposal, arguing that sales of these products will come at the expense of sales of Stardust’s other beauty products.

Her belief is that the new line will pull current customers to a new product rather than bring in new customers for the company. Which of the following, if true, is the most effective response to this critic?
A) Customers who make purchasing decisions based primarily on price are unlikely to purchase the more expensive organic products.
B) Consumers are aware that chemical alternatives may have harmful side effects.
C) The profit margin on organic beauty products is much higher than the profit margin on nonorganic beauty products.
D) Some suppliers of organic extracts are also in the business of synthetic material supply.
E) Effective positioning and consumer education will help offset negative perceptions about nonorganic beauty products.

ANSWER

Answer: C
Explanation: C) The product line manager is concerned that current Stardust customers will simply switch from nonorganic beauty products to organic beauty products. Choice C tells us why this would be good for Stardust as a whole—each organic beauty product sale brings in more profit than its nonorganic counterpart does. In other words, the company will make more money with the new line, even if current beauty lines experience a drop in sales due to the introduction of the new line. Choice A tells us how customers who make decisions based on price are likely to react, but we don’t know if this accurately describes current customers of Stardust ‘n’ Clay’s beauty products. They may or may not make decisions based on price. Choice B doesn’t address the manager’s concern about current Stardust ‘ n’ Clay customers simply moving from one product line to another. Choice D focuses on suppliers, who aren’t relevant to the issue at hand. Choice E misses the point, which is that the new product line won’t result in any new customers for the company.