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A car manufacturer periodically discounts certain car models to its dealers to coincide with intensive advertising campaigns focused on those cars. After analyzing the results of this program, the manufacturer found that sales of the discounted cars was strong, but it also concluded that it could reap greater profits if it did not hold promotions in this way.
Which of the following statements, if true, best accounts for the manufacturer's conclusion about profitability?
A. Some consumers worry that discounted cars are more likely to be defective.
B. The car manufacturer had not been effective in controlling the production costs of the cars, and these rising costs ate into the manufacturer's profits.
C. Although dealers requested large numbers of the cars at discounted prices, they generally sold the cars at the normal retail price, thereby keeping more of the profit for themselves.
D. Many consumers buy large-ticket items, such as cars, only when they are on sale.
E. The manufacturer's intensive advertising campaign did not sufficiently emphasize the cars' high levels of performance on road tests.
OA C
Source: Princeton Review
Which of the following statements, if true, best accounts for the manufacturer's conclusion about profitability?
A. Some consumers worry that discounted cars are more likely to be defective.
B. The car manufacturer had not been effective in controlling the production costs of the cars, and these rising costs ate into the manufacturer's profits.
C. Although dealers requested large numbers of the cars at discounted prices, they generally sold the cars at the normal retail price, thereby keeping more of the profit for themselves.
D. Many consumers buy large-ticket items, such as cars, only when they are on sale.
E. The manufacturer's intensive advertising campaign did not sufficiently emphasize the cars' high levels of performance on road tests.
OA C
Source: Princeton Review
