Which of the following, if true, most strongly supports a decision by

QUESTION

Which of the following, if true, most strongly supports a decision by Red Bull to produce a line of enhanced waters?

A) Red Bull’s current customers drink enhanced waters at rates similar to the rates of customers of other energy drinks.
B) Enhanced water typically has higher production costs than other drinks, but it typically has a higher retail price than other drinks.
C) Targeting a new segment of consumers requires more resources than trying to sell multiple products to the same segment.
D) Energy drink customers and enhanced-water customers share many lifestyle characteristics.
E) Red Bull has succeeded in the energy drink market with a combination of strong product design, sound planning, and careful implementation.

ANSWER

Answer: D
Explanation: D) If Choice D were true, and the two groups were similar in terms of lifestyle characteristics, then it would be easier to believe that Red Bull could be successful at building relationships with enhanced-water drinkers. Red Bull would be more likely to be able to reach them efficiently and would be better positioned to speak to their needs. Choice A is wrong for a subtle reason. If it said that Red Bull customers were big consumers of enhanced water, then it would be correct, but Choice A doesn’t say that. It says that Red Bull customers drink as much enhanced water as the customers of other energy drinks do. We don’t know if that’s a high number or a low number. We just know it’s the same, and so it does not strengthen the argument. Choice B tells us about the product in general, but not about Red Bull’s fit with that market. Choice C would be a problem if enhanced-water drinkers represented a new segment, but we don’t even know that for sure. So Choice C has no effect. Choice E tells us how Red Bull succeeded in the past, but we don’t know how effective this would be in the new market.