Recently, the national retail chain BargainMart drastically reduced the variety of products it stocks, cutting its inventory from roughly 50,000 unique items to just 20,000. Surprisingly, despite offering far fewer choices to its customers, BargainMart's total revenue from sales increased by 15% over the exact same period, even though overall retail spending in the country remained flat.
Which one of the following, if true, most helps to resolve the apparent discrepancy described above?
- AMaintaining an inventory of 50,000 unique items required complex logistics and massive distribution centers that BargainMart could no longer afford to operate.
- BDuring the same period, BargainMart extended the daily operating hours of all its retail locations, giving shoppers more time to visit the stores.
- The items that BargainMart eliminated were primarily slow-moving products that had severely cluttered the aisles, and their removal made it much easier for customers to locate and purchase the chain's most popular, high-priced goods.Cevap
- DThe 30,000 unique items that BargainMart removed from its inventory included many of the chain's best-selling and most heavily promoted products from the previous year.
- EBecause of the inventory reduction, the percentage of items in BargainMart's inventory that are profitable is higher than it was last year, even though the absolute number of profitable items it carries has decreased.
Cevap
The correct answer explains that the removed items were cluttering the aisles, and their elimination helped customers locate and buy popular, high-priced goods.
The correct answer successfully bridges the gap between the two surprising facts. By stating that the eliminated items were cluttering the aisles and preventing shoppers from finding popular, high-priced goods, it provides a logical mechanism for how drastically reducing product variety directly caused an increase in sales revenue.
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Eliminating One-Sided Explanations