One of the managers at Jenny’s feels that the tide will turn against p

QUESTION

One of the managers at Jenny’s feels that the tide will turn against private-label brands once the economy improves. Which of the following is the best counterargument to this claim?

A) Some retailers with private brands have performed well even when the times were good.
B) A company cannot make a major business decision based on the state of the economy, which moves up and down in unpredictable cycles.
C) Private brands will appeal to most budget-conscious shoppers as long as Jenny’s can deliver superior value.
D) Jenny’s can design strong advertising programs and take national brands head-on to maintain high awareness and preference.
E) It is easy to switch the focus to national brands once the economic environment changes.

ANSWER

Answer: C
Explanation: C) The manager feels that when customers have more money, they will stay away from private brands, but this only makes sense if customers prefer other brands instead of private ones. As Choice C points out, if Jenny’s can deliver value, then Jenny’s brand can be successful with a significant segment of consumers. So Choice C provides a good counter. Choice A is not specific enough to tell us anything about Jenny’s. Choice B isn’t a good argument because macroeconomic conditions are an important consideration. Choice D is not a reasonable option for a small chain with only 15 stores. Choice E claims that it is easy to shift strategies, but this is unlikely.