avigutman
hadimadi
How does the existence of a new type or product in some grocers give such an incentive? The mere existence, without any sales or profit numbers, or other benefits? Who knows if this will ever sell?
hadimadi The author's reasoning for grocers' lack of a reason to encourage the introduction of new products was the zero-sum-game in the case of new brands for existing products. If there's a new product (as opposed to merely a new brand of an existing product), then the reasoning provided by the author is no longer relevant, and the grocers may very well have a reason to encourage the introduction of new products (because it's no longer a zero-sum-game).
hadimadi
Now here is why (D) INCLUDES (E):
If grocers can reject or accept any kind of product (any kind includes new types or products AND new brands), then they have a reason to encourage manufacturers to come up with new product types and new brands. IF a product is nice of revenue increase or profit, they accept it. For example, if the pasta mentioned in (E) is nice, they will accept it.
Right, (D) says no-one is going to force grocers to carry products they don't want to. Okay, great. Now that we know this, do we (the grocers) have a reason to encourage the introduction of new products? What is that reason, exactly? Can you articulate it? What has changed? It's still a zero-sum-game, after all, is it not?
avigutman1. Yes, if there is a new product that does somehow well it would be interesting. (E) only talks about the existence of a new product, nothing about if it will ever sell. Merely a new product is not an incentive for a grocer to encourage manufacturers. It has to be a new product that is purchased or somehow has a
positive effect on the grocer. Where in (E) is that effect? It isn’t mentioned. It could still be the best answer, since in mentions new products that
might sell. So let’s look at (D).
2. The reason why this should encourage grocers to push manufacturers for new products: Grocers have 0 cost of encouraging M to develop products. As a grocer, my rationale is to push M to do new products. If they develop completely new products that will be sold, good, I will accept. If not, I won’t.
It could be, for example, that M comes up with the same product as mentioned in (E), and given that it actually sells, the grocer would take it.
So in total, given that I can accept and decline products, I have all the incentives to push M to develop (new) products and see what they come up with.
I find 2. stronger than 1.