Department store

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Department store

by mgmt_gmat » Fri Feb 12, 2010 1:07 am
Many large department stores in Montalia now provide shopping carts for their customers.
Since customers using shopping carts tend to buy more than those without shopping carts,
most of these stores are experiencing strong sales growth, while most other department
stores are not. Therefore, in order to boost sales, managers of Jerrod's, Montalia's
premier department store, are planning to purchase shopping carts and make them
available to the store's customers next month.
Which of the following, if true, casts most doubt whether the managers' plan, if
implemented, will achieve its goal?
A. Since most customers associate shopping carts with low-quality discount stores,
Jerrod's high-quality image would likely suffer if shopping carts were introduced.
B. Because the unemployment rate has declined to very low levels, Jerrod's now has
to pay significantly higher wages in order to retain its staff.
C. A number of department stores that did not make shopping carts available to their
customers have had to close recently due to falling profits.
D. Shopping carts are not very expensive, but they generally need to be replaced
every few years.
E. Stores that make shopping carts available to their customers usually have to hire
people to retrieve the carts from parking areas.

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by komal » Fri Feb 12, 2010 2:34 am
mgmt_gmat wrote:Many large department stores in Montalia now provide shopping carts for their customers.
Since customers using shopping carts tend to buy more than those without shopping carts,
most of these stores are experiencing strong sales growth, while most other department
stores are not. Therefore, in order to boost sales, managers of Jerrod's, Montalia's
premier department store, are planning to purchase shopping carts and make them
available to the store's customers next month.
Which of the following, if true, casts most doubt whether the managers' plan, if
implemented, will achieve its goal?

Cause : Shopping Carts
Effect : Strong Sales growth


A. Since most customers associate shopping carts with low-quality discount stores,
Jerrod's high-quality image would likely suffer if shopping carts were introduced.
Correct : This seriously weakens the argument by stating that even when the cause occurs effect will not occur because Jerrod's is a PREMIER dept store and shopping carts will seriously tarnish its image.

B. Because the unemployment rate has declined to very low levels, Jerrod's now has
to pay significantly higher wages in order to retain its staff.
Incorrect : Out of scope

C. A number of department stores that did not make shopping carts available to their
customers have had to close recently due to falling profits.
Incorrect : Issue is not about falling profits. Issue is about boost in sales.

D. Shopping carts are not very expensive, but they generally need to be replaced
every few years.
Incorrect : Price of shopping carts is not the issue here.

E. Stores that make shopping carts available to their customers usually have to hire
people to retrieve the carts from parking areas.
Incorrect : This does not weaken the conclusion in any way.
Hope this helps : )

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by VikingWarrior » Fri Feb 12, 2010 6:15 am
Quite straightforward I thought.
My answer is A. Any specific reason/confusion?

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by Ragingrsx » Fri Feb 12, 2010 8:49 pm
Another for A. Keyword for me was Premier.

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by joseph32 » Sun May 15, 2016 11:27 pm
I think A is the right answer here.