QUESTION
Which of the following, if true, weakens the argument for developing organic beauty products?
A) Few companies have obtained patents for their organic product innovations.
B) Competitors in this segment are quick to copy any new product innovation and mimic product design.
C) Organic offerings have a shorter shelf-life compared to synthetic products.
D) Customers need to be educated about the relative benefits offered by organic products.
E) Financial analysis shows that it would take the company 1.5 years to recover its initial investment.
ANSWER
Answer: B
Explanation: B) If Stardust doubts whether it can achieve and maintain a competitive advantage in the organic beauty products market, then the company is unlikely to pursue the proposed line. Choice B points to a lack of sustainable competitive advantage, as competitors can be expected to quickly copy Stardust’s product and promotions. Choice B weakens the argument. Choice A is a nonissue, as Stardust could use different processes and come up with different products. Choice C doesn’t necessarily weaken the argument, as a shorter shelf-life suggests that consumers would need to repurchase the cosmetics more frequently. Choice D indicates a need for increased customer awareness, a promotional challenge that would be true for many innovative products. Choice E tells us how long it would take the company to recover its investment, but without a frame of reference, we don’t know if this strengthens or weakens the argument. If it usually takes two or more years to recover an investment, then this strengthens the argument for developing an organic line.
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