Which of the following, if true, most strengthens the argument for Fiz

QUESTION

Which of the following, if true, most strengthens the argument for Fizz to introduce an energy drink?

A) Studies indicate that consumers largely associate the company’s products with a healthy lifestyle.
B) The energy drink market is highly concentrated, and there are only two major global players.
C) The company has an extensive distribution network that can ensure a nationwide rollout of the new product.
D) Major sources of new-product ideas for Fizz include internal sources such as managers and employees.
E) Customers of energy drinks are not known to be highly brand loyal.

ANSWER

Answer: A
Explanation: A) It makes sense for Fizz to enter the energy drink market if it has a reasonable expectation of successfully competing in that market. If the company is already associated with a healthy lifestyle, as stated in Choice A, then its energy drink is likely to have a natural appeal for the energy drink market—people who are interested in a healthy lifestyle. Choice B suggests that the global energy drink market is already dominated by two powerful players. However, Fizz is interested in marketing an energy drink in the United States. Choice C assumes that a nationwide rollout is the best strategy for a new energy drink. That may or may not be the case. Choice D tells us nothing about the question of whether Fizz should introduce an energy drink. Choice E could either strengthen or weaken the argument: consumers of energy drinks won’t be tied by loyalty to current brands, but they are also unlikely to develop loyalty for Fizz’s energy drinks.