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Manufacturers sometimes

Expert replies
by ektamatta » Mon Jul 28, 2008 1:04 pm
14. Manufacturers sometimes discount the price of a product to retailers for a promotion period when the product is advertised to consumers. Such promotions often result in a dramatic increase in amount of product sold by the manufacturers to retailers. Nevertheless, the manufacturers could often make more profit by not holding the promotions.
Which of the following, if true, most strongly supports the claim above about the manufacturers' profit?
(A) The amount of discount generally offered by manufacturers to retailers 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, not sufficiently long for consumers to become used to the sale price.
(C) For products that are not newly introduced, the purpose of such promotions is to keep the products in the minds of consumers and to attract consumers who are currently using competing products.
(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 falls 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 Mani_mba » Mon Jul 28, 2008 7:40 pm
IMO B.
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by reachac » Mon Jul 28, 2008 8:27 pm
IMO D
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Re: Manufacturers sometimes

by kiranlegend » Mon Jul 28, 2008 10:01 pm
ektamatta wrote:14. Manufacturers sometimes discount the price of a product to retailers for a promotion period when the product is advertised to consumers. Such promotions often result in a dramatic increase in amount of product sold by the manufacturers to retailers. Nevertheless, the manufacturers could often make more profit by not holding the promotions.
Which of the following, if true, most strongly supports the claim above about the manufacturers' profit?
(A) The amount of discount generally offered by manufacturers to retailers 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, not sufficiently long for consumers to become used to the sale price.
(C) For products that are not newly introduced, the purpose of such promotions is to keep the products in the minds of consumers and to attract consumers who are currently using competing products.
(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 falls to offer such promotions but its competitor offers them, that competitor will tend to attract consumers away from the manufacturer's product.
IMO 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. -- so the effect manufacturures want to create is not happeneing because of the reason mentioned in D
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by aj5105 » Thu Jun 18, 2009 2:51 am
re-opening this thread.
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by joymukhi » Thu Jun 18, 2009 3:46 am
OA pls.
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by ST » Fri Jun 19, 2009 7:49 am
I think it is A
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by mehravikas » Fri Jun 19, 2009 8:35 pm
Please correct me if I am wrong, question stem is asking to support the answer choice which states that manufacturers can make more profit by not offering such discounts...

in that case answer should be 'D'
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by aj5105 » Sat Jun 20, 2009 5:37 am
OA (D)
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by sumanr84 » Thu Jul 29, 2010 9:00 am
This is tough one. I got it wrong..try it..

Source : Verbal Review
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