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Manufacturers issue cents-off coupons to get consumers to

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Manufacturers issue cents-off coupons to get consumers to [#permalink] New post 04 Sep 2011, 05:48
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  15% (low)

Question Stats:

84% (01:42) correct 16% (00:42) wrong based on 99 sessions
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.
[Reveal] Spoiler: OA

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Re: Issuing Cents-Off Coupons [#permalink] New post 04 Sep 2011, 08:05
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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.

Claim: Issuing cent-off coupons for the new products of brand X will make the products' consumers a loyal customer to brand X.

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?
Find a weakener of the claim.

A. Many consumers are unlikely to try new brands of products unless offered an inducement to do so.
Inducement is offered as cent-off coupons, but will that inducement make the consumer a loyal customer? Can't say. Irrelevant information.

B. The consumers whose purchases are strongly influenced by cents-off coupons tend not to become loyal customers of any particular brand.
The claim is hurt. Customers who seek cents-off coupons are less likely to be loyal customers irrespective of the brand for which the coupons were offered. Correct.

C. Many grocery stores attract customers by doubling the face value of manufacturer's coupons.
It may attract more consumers to buy the discounted products, but it doesn't guarantee their loyalty to the products' brand.

D. Typically less than one-third of the coupons issued by a manufacturer are redeemed by consumers.
So, approximately 1/3rd of the coupons may be redeemed, but what about the loyalty. Out of scope.

E. A marketing campaign that uses cents-off coupons is most effective when combined with a television advertising campaign.
Author didn't take Television advertising campaign as a premise for her claim. This statement brings an extra element that is not within the realm of the consideration.


Ans: "B"
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Re: Issuing Cents-Off Coupons [#permalink] New post 04 Sep 2011, 09:18
Fluke,
Thanks for the explanation..

I missed the part which says attracting a large segment of potential consumers as loyal customers. I should start reading the question properly.. :cry:
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Re: Issuing Cents-Off Coupons [#permalink] New post 06 Sep 2011, 05:43
B is OA
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Re: Manufacturers issue cents-off coupons to get consumers to [#permalink] New post 31 Jul 2014, 02:58
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   [#permalink] 31 Jul 2014, 02:58
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