My confused opinion is Ans B
(A) The department store performed market research after hiring the new representative and found that she was unpopular among customers.
Eliminated. If as per company's beleif she had same traits as her previous rep, she should had been equally popular in Market research (Correct me if I am wrong)?
(B) A tabloid hinted that the new representative had an unsavory past inconsistent with the clean image she presented to the company.
Suitable, covers the criterion of failure in popularity essentials.
(C) A competitor department store hired a new representative who was far more popular than the first department store’s new representative.
Eliminated.No correlation can be established with another store's third rep.
(D) Department store staff believed they had made a mistake with the new representative and decided to look for another one to replace her.
Eliminated. Looking for another rep does not entail rehiring the older rep.
(E) The new representative did not enjoy the position, so she began ignoring her responsibilities.
Eliminated. Out of context.