Which of the following most logically completes the argument?
According to experts on shopping behavior, more shoppers would shop at Jerrod's department store if they were offered the convenience of shopping carts. In fact, even if the amount spent by these additional customers only just covered the cost of providing the carts, providing carts would still probably increase Jerrod's profits, since _______.
A. the layout of Jerrod's is open enough to accommodate shopping carts comfortably
B. several department stores that compete with Jerrod's have begun to make shopping carts available to their customers
C. there are some potential customers who would not be enticed to shop at Jerrod's by the availability of shopping carts
D. stores that make shopping carts available to customers usually have to hire people to retrieve them from parking areas
E. a customer with a shopping cart buys more, on average, than a customer without a cart
OA: E
By eliminating other four options, I chose C.I could figure out where the problems were in these three: ABD, but E really didn't make sense to me since according to the argument "even if the amount spent by these additional customers only just covered the cost of providing the carts". Doesn't E contradict the argument?[spoiler]
[/spoiler]Please help, thanks.
shopping behavior: shopping cart,more customers
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- HSPA
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Hi .. this is a good 500-550 grade question... a probable first question..
Walmart stopped supplying carry bags..end result is I will just by one tooth brush and walk out from there.
If walmart provides a person... to help the customer put back the goods into his wagon.. the customer may buy house hold required goods for an entire month. So if I am manager walmart I will definetly do this.
Walmart stopped supplying carry bags..end result is I will just by one tooth brush and walk out from there.
If walmart provides a person... to help the customer put back the goods into his wagon.. the customer may buy house hold required goods for an entire month. So if I am manager walmart I will definetly do this.
First take: 640 (50M, 27V) - RC needs 300% improvement
Second take: coming soon..
Regards,
HSPA.
Second take: coming soon..
Regards,
HSPA.
I know it will be much easier to consider this question in our real life, but since it is a GMAT question, could you please explain the choice in the context of this GMAT argument? I mean, could you please explain why we should choose E to support the conclusion since it would seem to be a contradictory premise("even if the amount spent by these additional customers only just covered the cost of providing the carts") if we chose it. Thanks.HSPA wrote:Hi .. this is a good 500-550 grade question... a probable first question..
Walmart stopped supplying carry bags..end result is I will just by one tooth brush and walk out from there.
If walmart provides a person... to help the customer put back the goods into his wagon.. the customer may buy house hold required goods for an entire month. So if I am manager walmart I will definetly do this.
- crisro
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Even if the amount spent by these additional customers only just covered the cost of providing the carts means that the increase in profit is expected from the existing customers as in option E.bettylll wrote:Which of the following most logically completes the argument?
According to experts on shopping behavior, more shoppers would shop at Jerrod's department store if they were offered the convenience of shopping carts. In fact, even if the amount spent by these additional customers only just covered the cost of providing the carts, providing carts would still probably increase Jerrod's profits, since _______.
A. the layout of Jerrod's is open enough to accommodate shopping carts comfortably
B. several department stores that compete with Jerrod's have begun to make shopping carts available to their customers
C. there are some potential customers who would not be enticed to shop at Jerrod's by the availability of shopping carts
D. stores that make shopping carts available to customers usually have to hire people to retrieve them from parking areas
E. a customer with a shopping cart buys more, on average, than a customer without a cart
OA: E
By eliminating other four options, I chose C.I could figure out where the problems were in these three: ABD, but E really didn't make sense to me since according to the argument "even if the amount spent by these additional customers only just covered the cost of providing the carts". Doesn't E contradict the argument?[spoiler]
[/spoiler]Please help, thanks.
Option C doesn't help in providing explanation for a possible profit increase, the most it does is to tell us that the shop might get additional customers, but as it says in bolded section they will be accounted for covering the cost of providing the carts.
- vk_vinayak
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bettylll wrote:Which of the following most logically completes the argument?
According to experts on shopping behavior, more shoppers would shop at Jerrod's department store if they were offered the convenience of shopping carts. >> Experts say that by introducing shopping carts, Jerrod's will get more (additional) customers. Additional customers means increased revenue and increased profits.
In fact, even if the amount spent by these additional customers only just covered the cost of providing the carts, >> Experts are weighing whether the amount Jerrod's will have to spend on buying shopping carts will be recovered by these additional customers. Here 'only just covered' implies that Jerrod's will not be making losses. Experts believe that Jerrod's will be either able to recover from the additional customers the amount spent on shopping carts or Jerrod's will make profits.
providing carts would still probably increase Jerrod's profits, since _______. >> So, here experts say that Jerrod's will make profits, even if they can recoup just about the exact amount from the new customers. But How? <that should the answer we need to fill in the blank>
C. there are some potential customers who would not be enticed to shop at Jerrod's by the availability of shopping carts >> This option says that some people (who are not the customers of Jerrod's at the moment) will not be shopping at Jerrod's even if Jerrod's provide shopping carts. This option doesn't explain how the profits will be increased. So, this option is incorrect.
E. a customer with a shopping cart buys more, on average, than a customer without a cart >> It says that a customer (whether the existing customer or new customer) will purchase more stuff if shopping cart is available than when shopping carts are not available. ie Shopping carts will entice the customer to buy more stuff than he would have bought otherwise. This option tells us how introducing the shopping carts will help Jerrod's to make profits. Hence this option is correct
- VK
I will (Learn. Recognize. Apply)
I will (Learn. Recognize. Apply)