Question 7 Given the following data from a Comparative Competitive Efforts page in the CIR: WHOLESALE SEGMENT Your Company Industry Average Your Company vs. Ind. Avg. Wholesale Price ($ per pair) $58.75 $53.83 +9.1% S/Q Rating (1 to 10 stars) 8.3 6.3 +31.7% Model Availability 250 300 -16.7% Brand Advertising ($000s) 16,500 14,350 +15.0% Rebate Offer ($ per pair) 3.00 3.40 -11.8% Delivery Time (weeks) 2 wks 2.8 wks -28.6% Retailer Support ($ per outlet) 4,500 4,675 -3.7% Retail Outlets 1,698 1,538 +10.4% Celebrity Appeal 60 111 -45.9% Brand Reputation (prior-year average) 87 79 +10.1% Pairs Demanded 2,198 2,413 +29.7% Gained/Lost (due to stockouts) +9 0 Pairs Sold (000s) 2,207 2,413 -8.5% Market Share (%) 9.1% 10.0% -0.9 pts

Based on the above data for your company, which of the following statements is false?

A. Your companys pairs sold were 9,000 pairs higher than they would otherwise have been because other companies in the region did not have sufficient inventory to fill all orders from retailers, thus causing some retailers to place orders with your company.

B. Your companys biggest percentage competitive disadvantage in the Wholesale Segment related to celebrity appeal.

C. Your companys branded sales volume and market share in the Wholesale segment were positively impacted by your companys small percentage competitive advantages in brand reputation, retail outlets, and wholesale price.

D. Your companys branded sales volume and market share in the Wholesale segment were negatively impacted by your companys competitive effort in model availability and by your companys low celebrity appeal rating, low rebate offer, and level of retailer support.

E. Your company had a competitive advantage in delivering orders for branded footwer to retailers.