Official Solution:
The Kale Chip Cooperative, a U.S. company that markets healthy snacks, is pilot-testing four region-specific flavors: a maple–dessert chip in the Northeast, a spicy Cajun chip in the South, a teriyaki chip in the Northwest, and a cilantro–chili chip in the Southwest. Results from the trial will determine whether each flavor should be rolled out nationwide.
Each of the following actions would help the company evaluate its business strategy EXCEPT:
A. Designing region-specific promotional posters to draw attention to the new chips.
B. Tracking sales of all company products and noting whether consumers in one region preferred flavors offered in other regions.
C. Analyzing ingredient sourcing and transportation costs to determine whether each flavor can be produced profitably at scale.
D. Verifying that the new flavors preserve the brand’s signature taste and texture so that introducing them will not dilute existing customer loyalty.
E. Monitoring social-media feedback on all of the company’s products by employing an impartial third-party group.
A. Designing region-specific promotional posters to draw attention to the new chips.
Correct (EXCEPT): Promotional materials may boost visibility or sales during the trial, but they do not supply information the company needs to decide whether nationwide production is feasible or profitable. The posters are a marketing tactic, not an evaluative step, so this action does not help assess the business strategy and is therefore the outlier.
B. Tracking sales of all company products and noting whether consumers in one region preferred flavors offered in other regions.
Incorrect: Unit-sales data reveal actual demand, and cross-regional preference patterns signal broader market potential. Both pieces of information are essential for deciding which flavors merit full-scale rollout, so this action clearly supports evaluation of the strategy.
C. Analyzing ingredient sourcing and transportation costs to determine whether each flavor can be produced profitably at scale.
Incorrect: Profitability hinges on raw-material costs and logistics. By quantifying these expenses, the company can judge whether scaling up any flavor would erode margins or fit its eco-friendly brand positioning, informing the launch decision.
D. Verifying that the new flavors preserve the brand’s signature taste and texture so that introducing them will not dilute existing customer loyalty.
Incorrect: If a new flavor compromises the core product experience, rolling it out could harm the brand and long-term sales. Confirming taste-and-texture consistency therefore provides crucial input for evaluating whether the new offerings are strategically sound.
E. Monitoring social-media feedback on all of the company’s products by employing an impartial third-party group.
Incorrect: Unfiltered consumer sentiment highlights acceptance, criticism, and regional buzz surrounding the trial flavors. This qualitative feedback helps gauge market readiness and reputational impact, making it useful for assessing the overall business strategy.
Answer: A