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.
OA after some discussion.
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thephoenix
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IMO A
Many of the great achievements of the world were accomplished by tired and discouraged men who kept on working
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thephoenix
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can we have sourcepaes wrote:This is not OA. Try again.thephoenix wrote:IMO A
Many of the great achievements of the world were accomplished by tired and discouraged men who kept on working
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SmarpanGamt
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IMO D : look at the situation id dealer would have kept the stock with offer to the customer and still manage to sell the vehicle, manufacturere will loss the profit in long run or after the incentive period is over.paes wrote: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.
OA after some discussion.
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SmarpanGamt
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SmarpanGamt wrote:IMO D : look at the situation if the dealer would have kept the stock without offering the incentive to the customer and still manage to sell the vehicle, manufacturere will loss the profit in long run or after the incentive period is over to sell less and wait till the inventory at dealer gets over.paes wrote: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.
OA after some discussion.
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paes
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Source 800scores
OA is E
See the question again. The question is not asking for 'support the argument' but it is asking for 'support for the incentive program'
E says that if a manufacturers fails for such programs, he will loose the customers. Hence E is supporting the 'incentive program
But, I was confused with the type of question here. I am seeing others are also doing the same mistake.
not sure whether GMAT asks the question like this.
OA is E
See the question again. The question is not asking for 'support the argument' but it is asking for 'support for the incentive program'
E says that if a manufacturers fails for such programs, he will loose the customers. Hence E is supporting the 'incentive program
But, I was confused with the type of question here. I am seeing others are also doing the same mistake.
not sure whether GMAT asks the question like this.
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gmatmachoman
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Hey Sandysanp_l wrote:Ah....i chose E and its pretty straightforward i guess if you read the question correctly.
A tricky one.
Man, after long long time on BTG???
The answer is A.
The question is ---which will support?
The answer A says,since the calculation is already done that it really does not hurt the organisation as the incentive program is for so less period.So it supports the arguement.
The question is ---which will support?
The answer A says,since the calculation is already done that it really does not hurt the organisation as the incentive program is for so less period.So it supports the arguement.
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SmarpanGamt
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MBA wrote:The answer is A.
The question is ---which will support?
The answer A says,since the calculation is already done that it really does not hurt the organisation as the incentive program is for so less period.So it supports the arguement.
What is OA ?
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nikhilkatira
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Guys can you categorize statement A i.e. whether it is a fact , out of scope or irrelevant ?paes wrote:OA = official answerMBA wrote:Sorry...I dont understand OA?What is the meening of OA?
Best,
Nikhil H. Katira
Nikhil H. Katira
