Critical Reasoning

Densmore Company, known for its luxury goods, has recently expanded its business and has begun marketing to consumers who, when surveyed, have stated that they usually purchase products priced at or below the prevailing market rate. To attract these customers' business, Densmore is advertising that its new, more inexpensive product lines, already priced lower than its top-selling luxury items, are on sale for 30% off. The Densmore marketing staff has determined that advertising its discounted prices is the most effective way of attracting potential customers.

Which of the following would be most helpful in evaluating the likelihood that Densmore's plan will achieve its goal?
A) How the profit margins on the new product lines compare to those for the top selling luxury items.

B) What percentage of existing Densmore customers are included in the consumer survey.

C) How many consumers surveyed are existing Densmore customers.

D) Whether those consumers most concerned with bargain-hunting will be exposed to Densmore's advertising campaign.

E) How the sale price compare to those for comparable, non-discounted products.

OA: E
Source: VeritasPrep (Advanced)

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