Retail Analyst: To combat declining profits, several bookstore chains introduced gourmet cafes and seating areas. Consequently, the average time customers spend in these stores has increased significantly. However, during the same period, overall book sales revenue at these chains has continued to decrease. Therefore, the introduction of cafes and seating has failed to help stimulate book sales.
Which one of the following is an assumption required by the retail analyst's argument?
- AAny retail strategy that is followed by a continued decrease in overall sales revenue has failed to help stimulate sales.
- BCustomers who visit the gourmet cafes spend less money on books than customers who do not visit the cafes.
- CThe presence of gourmet cafes and seating is the primary cause of the recent decrease in book sales revenue.
- The decline in book sales revenue would not have been even greater if the bookstore chains had not introduced the cafes and seating areas.Answer
- EBookstores that did not introduce cafes and seating did not experience a decrease in their book sales revenue during this same period.
Answer
The correct answer is the option stating that the decline in book sales revenue would not have been even greater if the bookstore chains had not introduced the cafes and seating areas.
This option acts as a 'defender' assumption. For the analyst to conclude that the strategy completely failed to help, they must assume it didn't prevent an even worse outcome. If we negate this statement—assuming that sales WOULD have decreased even more had the cafes not been built—then the cafes actually did help maintain sales relative to the baseline. Because negating this option destroys the analyst's conclusion, it is a logically necessary assumption.
Step-by-Step Solution
Key Concept
Necessary Assumption (Defender Strategy)