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Automobile Manufactureres - 800 score

Expert replies
by kajcha » Sat Sep 15, 2007 3:47 pm
Automobile manufacturers often offer incentive programs through which they discount the price of a car to their dealers for a promotion period when the product is advertised to consumers. Such incentive programs often result in a dramatic increase in the amount of product sold by the automobile manufacturers to dealers but may hurt the manufacturers’ profitability. Which of the following, if true, most strongly supports an argument for the incentive programs?
A. The amount of discount generally offered by manufacturers to dealers is carefully calculated to represent the minimum needed to draw consumers’ attention to the product.
B. For many consumer products, the period of advertising discounted prices to consumers is about a week, which is not sufficiently long for consumers to become used to the sale price.
C. More prestigious auto makers do not use incentive programs because they dilute the company’s brand name.
D. During such a promotion, retailers tend to accumulate in their warehouses inventory bought at discount; they then sell much of it later at their regular price.
E. If a manufacturer fails to offer such promotions but its competitor offers them, that competitor will tend to attract consumers away from the manufacturer’s product.
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Source: — Critical Reasoning |

by Auzbee » Sat Sep 15, 2007 4:34 pm
D) would be my selection as it supports the author's arguement
'Such incentive programs often result in a dramatic [B]increase in the amount of product sold [/B]by the automobile manufacturers to dealers but [B]may hurt the manufacturers’ profitability[/B]
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by kajcha » Sat Sep 15, 2007 4:36 pm
I thought so too... but that's not the OA... I am surprised too.. :cry:
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by [email protected] » Sun Sep 16, 2007 1:16 pm
IMO it should be E.
If manufacturer fails to offer such incentive an its competitor does so,the anufacturer may face loss.
Please let us know the OA
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by [email protected] » Sun Sep 16, 2007 1:38 pm
Also the question is "which statement will support the incentive program."The option D does not support but weaken the incentive program.
Please let me know if I am wrong
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by iwibeit2 » Sun Sep 16, 2007 1:47 pm
The answer is D.

The answer D supports the absolute nature of the incentive program as described in the passage. On the manufacturers' side, there would be higher automobile sales during the 'incentive period' with lesser profitability.
I will beat it too !!
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by kajcha » Sun Sep 16, 2007 1:56 pm
OA is E
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by optimisticsam » Mon Sep 17, 2007 6:40 pm
Seems to me E would be a little out of the scope.

I would have gone with D as well, as it seems to fit.
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by samirpandeyit62 » Tue Sep 18, 2007 1:02 am
IMO D is the choice which most strongly weakens the arguement by showing that the incentive program is futile, coz it would only benefit the dealers & not the manufacturers & the consumers.

Now the choices that support the incentive program are

A & E

A supports the incentive program by saying that the incetives are carefully calculated so that it neutralises the only point in the arguemnt that slighty undermines the incentive program i.e "but may hurt the manufacturers? profitability"

Now E says that if manufacturers dont use this program but their competitors do & this is a real threat, then consumers would be lost to the competitors, this strongly advocates the program, (more than A) & it is not OS coz the manuacturers intent for the program is to increase sales of the product (this will create competition for others).
Regards
Samir
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by kajcha » Tue Sep 18, 2007 6:27 am
samir, that's correct.. but the question asks which option SUPPORTS the argument. So, I think saurabh is correct.
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by iwibeit2 » Tue Sep 18, 2007 11:48 am
I agree.. E would be the best choice. I misunderstood the question.

Thanks Saurabh and Kajcha.
I will beat it too !!
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by samirpandeyit62 » Wed Sep 19, 2007 2:13 am
I actually meant that I agree with saurabh and E is correct, just gave an explantion but forgot to quote this.
Regards
Samir
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by vanessa.m » Fri May 13, 2016 1:11 am
I think that option D more suitable, than other options.
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