QUESTION
Which of the following, if true, supports the CEO’s position?
A) Snazzy decided that producing a line of energy drinks would be more profitable than attempting to penetrate international markets.
B) Young males, as a group, consume more energy drinks than any other market segment.
C) Energy drinks cost more per ounce than other popular beverages.
D) Energy drink manufacturers have recently tried to associate their product with positive social causes.
E) Companies define “young” differently.
ANSWER
Answer: B
Explanation: B) The CEO wants to target young males. If young males are heavy consumers of energy drinks, Choice B, then the CEO’s approach looks better. Choices A, C, and D concern the decision to produce energy drinks at all, not the issue of which segments to target. Choice E suggests that the CEO’s segment definition might be imprecise, so Choice E could only hurt the CEO’s position. We don’t care about everyone’s definition of “young,” anyway. We just care about Snazzy Sodas’ definition.
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