Which of the following questions is LEAST relevant to the question of

QUESTION

Which of the following questions is LEAST relevant to the question of whether the company should produce a private-label brand?

A) Would selling private brands increase overall sales?
B) Is the profit margin higher for sales of private brands as opposed to established brands?
C) Do nationwide retailers usually have success when producing private brands?
D) Does the company have any special expertise at designing or manufacturing clothes?
E) To what extent do customers have a positive impression of the Jenny’s brand?

ANSWER

Answer: C
Explanation: C) Before deciding to produce a private-label brand, companies should make sure that the underlying brand image is strong (Choice E). The company should have at least some ability to produce the product (Choice D). Making more money per sale supports the case for a private brand (Choice B). Making more sales (Choice A) has the same effect. The choice that doesn’t matter is Choice C. Nationwide retailers are too different from 15-location small chains such as Jenny’s for the experience of those large retailers to make much difference.