Classique Apparel is a new entrant into the apparel market and offers a complete range ofmen's clothing and accessories. The company is in the process of determining whether it should sell its products only throughbrick-and-mortar stores, opt for anonline-only retailingapproach, or use a multichannel strategy.

A Classique executive is worried that online shopping will inevitably force Classique to lower prices in order to compete with cheaper competitive products. Which of thefollowing, iftrue, most strongly suggests that this worry ismisplaced?

A.

Classique has a large group of"ambassador" customers who actively communicate online about the high quality of Classique products.

B.

The cost of maintaining anenterprise-class Web site is a necessary expense.

C.

The popularity of online shopping is not significantly affected by the activities of any one company.

D.

The online environment will give companies that compete on price access to a wider range of customers.

E.

Price pressures affect sellers of services as well as sellers of goods.