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Expert replies
by jainrahul1985 » Sun Jun 27, 2010 8:35 pm
Manufacturers issue cents-off coupons to get consumers to try their brand of product with the hope that the consumers who try their brand will switch their brand loyalty. So in the initial marketing of their new brand X, Hartman Industries should issue cents-off coupons, thereby attracting a large segment of potential consumers as loyal customers.

Which of the following, if true, casts the most serious doubt on the likelihood that the marketing strategy recommended above will have the result that is claimed?

(A) Many consumers are unlikely to try new brands of products unless offered an inducement to do so.
(B) The consumers whose purchases are strongly influenced by cents-off coupons tend not to become loyal customers of any particular brand.
(C) Many grocery stores attract customers by doubling the face value of manufacturer's coupons.
(D) Typically less than one-third of the coupons issued by a manufacturer are redeemed by consumers.
(E) A marketing campaign that uses cents-off coupons is most effective when combined with a television advertising campaign

OA [spoiler]B
Can someone explain why it is not D[/spoiler]
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Source: — Critical Reasoning |

by Testluv » Sun Jun 27, 2010 8:41 pm
Choice D is incorrect because even if the fraction is less than a third, it still may be a "large segment" of potential consumers.
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by tpr-becky » Sun Jun 27, 2010 9:55 pm
THe conclusion is that Hartman should issue coupons to attract a large potential customer base - the reason is becuase coupons are inducement that will hopefully switch brand loyalty. Therefore to weaken the conclusion you have to break the link between brand loyalty and coupons

B is the only answer that does this.

D is wrong becuase it doesn't matter what percent of coupons get redeemed - we don't know how many coupons or what would be a "large segment" so this can't weaken the arguement becuase we don't have enough information about the subjects of the answer for it to make any difference.
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