A small chain of supermarkets in Manitoba sells only manufacturers' brands.According to the text,which of the following is the BEST argument to dissuade the supermarket chain owner from selling only manufacturers' brands?
A) Relying on the manufacturer or wholesaler to deliver a national brand quickly is optimistic at best.
B) Manufacturers typically offer a lower gross margin than could be earned on private-label brands.
C) A well-known manufacturer's brand will not enhance the chain's image.
D) Manufacturers rarely spend money advertising the brand name to consumers.

Question

Quizplus · Accepted Answer

This choice provides a financial reason for the supermarket chain owner to consider offering private-label brands, as they typically offer a higher gross margin than manufacturers' brands. This could potentially increase profitability for the chain. Choices A, C, and D do not provide strong enough arguments to dissuade the owner from selling only manufacturers' brands.

A Small Chain of Supermarkets in Manitoba Sells Only Manufacturers