Critical Reasoning

Often, during a period of promotion in which a product is heavily marketed directly to consumers, companies offer discounts to both consumers and retailers to stimulate sales. Despite the significant short-term gains in sales that are usually sparked by such promotions, companies could generally make more profit without such discounts.

Which of the following, if true, most strongly supports the claim above?


(A) The companies already offer the smallest possible discounts that are still large enough to boost sales.

(B) The discounts generally last for very short periods of time, preventing consumers from becoming accustomed to the lower prices.

(C) The discounts can apply not only to new products but to more established ones as well, in order to draw customers away from competitors.

(D) The biggest beneficiaries of such discounts are generally retailers, who can keep the merchandise in stock until the price rises again and resell it for a significant profit.

(E) Companies who fail to respond in kind when their competitors offer promotional discounts often lose customers as a result.