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Re: Manufacturers issue cents-off coupons to get consumers to try their [#permalink]
Often, for harder questions and tricky one answer would be choice which attacks on line of reasoning !!!

Manufacturers issue cents-off coupons to get consumers to try their brand of product with the hope that the
consumers who try their brand will switch their brand loyalty.--(Reasoning , B attacks by he consumers whose purchases are strongly influenced by cents-off coupons tend not to become loyal
customers of any particular brand.)
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Re: Manufacturers issue cents-off coupons to get consumers to try their [#permalink]
B break the argument conclusion by predicting that customer are not loyal to any brand if they try these coupons.

Answer: B




varunmaheshwari wrote:
Manufacturers issue cents-off coupons to get consumers to try their brand of product with the hope that the
consumers who try their brand will switch their brand loyalty. So in the initial marketing of their new brand X,
Hartman Industries should issue cents-off coupons, thereby attracting a large segment of potential consumers
as loyal customers.
Which of the following, if true, casts the most serious doubt on the likelihood
that the marketing strategy recommended above will have the result that is claimed?

A. Many consumers are unlikely to try new brands of products unless offered an inducement to do so.
B. The consumers whose purchases are strongly influenced by cents-off coupons tend not to become loyal
customers of any particular brand.
C. Many grocery stores attract customers by doubling the face value of manufacturer's coupons.
D. Typically less than one-third of the coupons issued by a manufacturer are redeemed by consumers.
E. A marketing campaign that uses cents-off coupons is most effective when combined with a television
advertising campaign.
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Re: Manufacturers issue cents-off coupons to get consumers to try their [#permalink]
The reasoning is quite straight-forward. Because coupons attract customers and make them try your brand item, turning them loyal towards your brand, so Hartman should also do the same.

But is it so simple in the real world ?
Is there a guarantee attached here that if this normally happens, this will also happen for the Hartman's product ?
What if there is some condition, which we are not aware of and which needs to be fulfilled for the observation made above to be true.

Looking at options :

A) This option sort of pushes forward what is given as a basis in the passage. It hints that some incentive is necessary for the customers. So , it mildly supports the idea that if Hartman gives coupons, customers' attention can be drawn. Incorrect choice as it is not a weaken statement.

B) This option tells us that if you give coupons to customers, those who use them and try your product, are actually non-loyal customers. So this means it is not a guarantee that these customers will stay loyal to Hartman. This goes against the conclusion and is a possible correct choice.

C) This option tells us that if you offer coupons of say 10 percent discount, the grocery stores will increase their value such that the discount actually offered will be 20 %. Given the basis on which the conclusion was drawn, it seems more likely that customers will be attracted with more power and force than before. This option seems to support the conclusion because it says that grocery stores will actually help in promoting the product further. Hence, incorrect choice.

D) Typically only one third coupons are redeemed. But does that mean no coupons are redeemed ?
Atleast some customers are going to become loyal ones, aren't they ?
This option gives only a statistic proving that the coupons will be used, though only upto 30%.
Doesn't weaken the argument and hence incorrect.

E) This option tells that to get most effective results, tv ads should also be added to coupon campaign. But does that mean the coupon method is not at all effective. May be it is not the most effective, but it is effective to some extent, say 30 to 40 %. Even then, customers have turned loyal. This option does not seem to weaken the conclusion. Incorrect choice.

Correct choice should be B.
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Re: Manufacturers issue cents-off coupons to get consumers to try their [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Manufacturers issue cents-off coupons to get consumers to try their [#permalink]
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