Which of the following, if true, undermines the argument that Zappos s

QUESTION

Which of the following, if true, undermines the argument that Zappos should move toward a mass marketing campaign?

A) Zappos’ market research reveals that price is the most important factor for most customers who routinely buy shoes, clothing, and accessories.
B) Awareness of Zappos’ brand is low among customers who routinely buy shoes, clothing, and accessories.
C) The number of people who use the Internet to purchase clothing items is expected to grow substantially in the next three years.
D) Zappos’ initial marketing budgets were too small to allow it to purchase advertisements in popular newspapers and magazines.
E) Recently, most newspapers and magazines have lowered their advertisement rates due to reduced circulation.

 

ANSWER

Answer: A
Explanation: A) Now we need to figure out what would weaken the argument. All we really know about Zappos is that it has strong customer service. But if most customers are focused on price, then Zappos’ advantage in customer service would be less significant for those customers. So if Choice A is true, then going after the mass market makes less sense. As for the others: Choice B strengthens the argument by suggesting that Zappos would gain brand awareness from mass marketing. Choice C strengthens the argument by suggesting that more of the general population could be Zappos customers. Choice D identifies the reasons for Zappos’ initial decisions, which are irrelevant. The issue is what the company should do now. Choice E makes mass marketing sound cheaper, which strengthens the argument. But then again, if circulation is lower, then the rates should be cheaper. So Choice E does nothing to the argument.

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