Statement: Despite a significant increase in marketing expenditure, the sales of 'Alpha' brand smartphones have remained stagnant for the last quarter.
Which of the following, if true, would best explain this phenomenon?

The correct answer is (b) A major competitor launched a new model with superior features at a lower price during the same quarter. This option best explains why sales of the ‘Alpha’ brand remained stagnant despite increased marketing expenditure. A strong competitor offering a better product at a lower price would naturally attract potential customers, neutralising the impact of Alpha’s marketing push.

The other options are not correct because: Option (a) is irrelevant, as praise for creativity doesn’t guarantee sales impact. Option (c) could contribute to lower demand, but it doesn’t explain stagnation despite marketing as clearly as the competitor’s move does. Option (d) shows market growth but doesn’t explain why Alpha’s sales didn’t grow along with it.

Thus, (b) provides the most direct and logical explanation.