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New grocery products benefit the manufacturer but not the grocer. If a company introduces a new brand of detergent, it

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by BTGmoderatorDC » Mon Jun 29, 2020 5:36 pm

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New grocery products benefit the manufacturer but not the grocer. If a company introduces a new brand of detergent, it might attract more consumers to its brand. The grocery store, however, will not sell any more detergent overall than it would have without the new brand. Thus there is little reason for grocers to encourage the introduction of new products.

Which of the following, if true, argues against the conclusion above?


A. Often manufacturers introduce a new grocery product in order to take business away from a competitor who already produces a similar product.

B. Some manufacturers prefer to put new grocery products in stores as early as possible, rather than spending time and money on controlled market research.

C. Most grocery stores have such narrow profit margins that they cannot afford to carry marginally successful products.

D. Grocers have the option not to take on products that they do not think will sell well, or that they expect will not increase the grocer's profits.

E. Some manufacturers introduce new types of groceries, such as precooked meals that people can prepare quickly instead of going to a restaurant.


OA E

Source: GMAT Prep
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