Profit from items on sale

[prachich1987]

Retailers that hold special sales on grocery items are unwittingly driving down their profits, because sales items are sold at greatly-reduced profit margins.As a result, consumers become accustomed to buying those particular items only when they are sold a a discount.Thus, retailers should consider other incentives if they want to increase their profits.

Which of the following is an assumption underlying the above statements

a) shoppers going to retailers to purchase sale items do not buy a significant number of other items not offered at a discount
b) Discounted items are equal in quality to those non discounted
c) Customers will not buy a rival product if it is not offered at the same level of discount as sale item
d) There are few alternate incentives retailers can use to attract customers to their outlets
e) Special sales do not generate publicity for retailers.

OA : After some discussion
Source : Princeton

[Deepthi Subbu]

The OA should be A

Premise : Retailers that hold special sales on grocery items are unwittingly driving down their profits, because sales items are sold at greatly-reduced profit margins

Sub conclusion : .As a result, consumers become accustomed to buying those particular items only when they are sold a a discount

Main conclusion : Thus, retailers should consider other incentives if they want to increase their profits.

A - Negate answer : shoppers going to retailers to purchase sale items buy a significant number of other items not offered at a discount

Hence when the shoppers can buy many items, when there is no discount , the shoppers will buy more items when there is a discount . Hence there is no necessity for the retailers to introduce an incentive . This case weakens the conclusion , hence A is the correct answer

B - What does the quality got to do about the incentive?

C - The level of discount is no where considered int he argument.

D - The number of alternate incentives is out of scope.

E - Irrelevant .

[M09]

The OA should be A

Premise : Retailers that hold special sales on grocery items are unwittingly driving down their profits, because sales items are sold at greatly-reduced profit margins

Sub conclusion : .As a result, consumers become accustomed to buying those particular items only when they are sold a a discount

Main conclusion : Thus, retailers should consider other incentives if they want to increase their profits.

A - Negate answer : shoppers going to retailers to purchase sale items buy a significant number of other items not offered at a discount

Hence when the shoppers can buy many items, when there is no discount , the shoppers will buy more items when there is a discount . Hence there is no necessity for the retailers to introduce an incentive . This case weakens the conclusion , hence A is the correct answer

B - What does the quality got to do about the incentive?

C - The level of discount is no where considered int he argument.

D - The number of alternate incentives is out of scope.

E - Irrelevant .

Another vote for A

[diebeatsthegmat]

Retailers that hold special sales on grocery items are unwittingly driving down their profits, because sales items are sold at greatly-reduced profit margins.As a result, consumers become accustomed to buying those particular items only when they are sold a a discount.Thus, retailers should consider other incentives if they want to increase their profits.

Which of the following is an assumption underlying the above statements

a) shoppers going to retailers to purchase sale items do not buy a significant number of other items not offered at a discount
b) Discounted items are equal in quality to those non discounted
c) Customers will not buy a rival product if it is not offered at the same level of discount as sale item
d) There are few alternate incentives retailers can use to attract customers to their outlets
e) Special sales do not generate publicity for retailers.

OA : After some discussion
Source : Princeton

the CR says if the retailers want to increase profite it much find another way to attract customers instead of selling items at discount price because it assumes that customers will never go to retailers to buy so many products if those products are not sold at discount price.
A says that choose A