Introduction / Context:
Businesses invest in new outlets based on expected demand and customer experience. The statement describes an expansion of coffee shops with ambience features and breakfast offerings. We must infer the beliefs that justify this strategy.
Given Data / Assumptions:
- Action: Opening numerous music-equipped coffee shops serving breakfast snacks.
- Assumption I: Sufficient repeat customers will support the outlets.
- Assumption II: Customers value the comfortable, modern environment with coffee and snacks.
Concept / Approach:
Strategic expansion presupposes both market size (repeat demand) and product–experience fit (people will like the ambience with coffee/snacks). Without either, the rollout becomes commercially irrational.
Step-by-Step Solution:
If I were false (few customers), the scale of expansion would be hard to justify financially.If II were false (ambience not appreciated), the differentiating proposition fails, weakening the business case for “Plus” shops.Hence both I and II underpin the stated move.
Verification / Alternative check:
Retail expansion models typically require demand forecasts (repeat visits) and experiential appeal (ambience) to drive dwell time and ticket size.
Why Other Options Are Wrong:
I-only or II-only: Each alone is insufficient; both demand and ambience preference are part of the logic.Neither: Ignores basic retail assumptions.
Common Pitfalls:
Treating ambience as a luxury rather than a driver of footfall and loyalty in café formats.
Final Answer:
Both I and II are implicit
Discussion & Comments