A small chain of supermarkets in western Canada sells only manufacturers' brands. Which of the following is one of the arguments you could have used to dissuade the supermarket chain owner from selling only manufacturers' brands?
A)A well-known manufacturers' brand will not enhance the chain's image.
B)Manufacturers rarely spend money advertising the brand name to consumers.
C)Manufacturers typically offer a lower gross margin than could be earned on private-label brands.
D)Manufacturers force the chain to carry a large in-store inventory.

Question

Quizplus · Accepted Answer

Selling only manufacturers' brands may result in a lower gross margin for the supermarket chain compared to earning higher margins on private-label brands. Therefore, this could be a convincing argument to dissuade the supermarket chain owner from selling only manufacturers' brands.

A Small Chain of Supermarkets in Western Canada Sells Only