Stardust 'N' Clay Is a Manufacturer and Mass Marketer of Personal

Multiple Choice

Stardust 'n' Clay is a manufacturer and mass marketer of personal care products and nutritional supplements. The company plans to launch a line of organic beauty products that are made entirely from mineral pigments and organic plant extracts. These products, though expensive to process, offer much higher margins than the company's current lines of beauty products. The market for organic beauty products is relatively untapped, with just a handful of players. Which of the following, if true, would strengthen the case for Stardust 'n' Clay to begin developing organic beauty products?

A) Retailers report a consumer preference for inexpensive skin-care and beauty products that do a better job than the ones currently available.
B) Organic raw materials sourced from economically weak countries provide a source of livelihood for the local population.
C) Organic raw materials for such products can be sourced from developing countries at a lower cost.
D) The first mover in this industry is witnessing reasonable growth.
E) A growing number of women 18-34 consider the health impact of chemicals found in a beauty product when making a cosmetics purchase decision.