📊 GMAT Exam Prep

A retail chain is observing a decline in foot traffic at its downtown stores. Two potential causes are identified: increased competition from online retailers, and inadequate local advertising campaigns. Two solutions are proposed: investing in a robust e-commerce platform, or launching targeted local marketing initiatives. The goal is to address the most impactful cause with the most effective short-term solution. **Part 1: Which of the two identified causes (online competition or inadequate advertising) is likely having a more significant immediate impact on downtown store foot traffic?** **Part 2: Which of the two proposed solutions (e-commerce platform or local marketing) should be prioritized for immediate implementation to address the more significant issue?**

A Part 1: Online Competition; Part 2: E-commerce Platform
B Part 1: Inadequate Advertising; Part 2: Local Marketing
C Part 1: Online Competition; Part 2: Local Marketing
D Part 1: Inadequate Advertising; Part 2: E-commerce Platform

✓ Correct Answer: Option B

Part 1: Foot traffic decline is a local, physical store issue. While online competition is a factor, inadequate local advertising directly impacts awareness and draw to physical stores in the short term. Part 2: Launching targeted local marketing directly addresses inadequate advertising and aims to increase immediate foot traffic.

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