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To entice customers away from competitors, Red Label

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Director
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To entice customers away from competitors, Red Label [#permalink] New post 16 Mar 2008, 07:13
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D
E

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To entice customers away from competitors, Red Label supermarkets have begun offering discounts on home appliances to customers who spend $50 or more on any shopping trip to Red Label. Red Label executives claim that the discount program has been a huge success, since cash register receipts of $50 or more are up thirty percent since the beginning of the program.

Which of the following, if true, would most seriously weakens the claim of the Red Label executives?

(A) Most people who switched to Red Label after the program began spend more than $50 each time the shop at Red Label.
(B) Most people whose average grocery bill is less than $50 would not be persuaded to spend more by any discount program.
(C) Most people who received discounts on home appliances through Red Label’s program will shop at Red Label after the program ends.
(D) Since the beginning of the discount program, most of the people who spend $50 or more at Red Label are people who have never before shopped there and whose average grocery bill has always been higher than $50.
(E) Almost all of the people who have begun spending $50 or more at Red Label since the discount program began are longtime customers who have increased the average amount of their shopping bills by making fewer trips.
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Re: CR 30:2/30 [#permalink] New post 16 Mar 2008, 07:22
I will go with E , since it states that the customers are still spending the same and are also getting discounts which in effect would be a loss making proposition for Red Label
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Re: CR 30:2/30 [#permalink] New post 16 Mar 2008, 08:20
E for me as well, hoping Im right

Where are these questions from, by the way ?
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Re: CR 30:2/30 [#permalink] New post 16 Mar 2008, 08:25
prasannar wrote:
To entice customers away from competitors, Red Label supermarkets have begun offering discounts on home appliances to customers who spend $50 or more on any shopping trip to Red Label. Red Label executives claim that the discount program has been a huge success, since cash register receipts of $50 or more are up thirty percent since the beginning of the program.

Which of the following, if true, would most seriously weakens the claim of the Red Label executives?

(A) Most people who switched to Red Label after the program began spend more than $50 each time the shop at Red Label. - this strengthens the aguement, by showing that sales increased becasue of the programs by attacting other customers.
(B) Most people whose average grocery bill is less than $50 would not be persuaded to spend more by any discount program. - it doesnt say anything about the rest of the customers, who might be in a larger percent
(C) Most people who received discounts on home appliances through Red Label’s program will shop at Red Label after the program ends. this means that it's not the program is the cause for the large incease in sales of these customers, they would shop anyway
(D) Since the beginning of the discount program, most of the people who spend $50 or more at Red Label are people who have never before shopped there and whose average grocery bill has always been higher than $50. - This strengthens the arguement saying that the program was the cause in attracting new customers
(E) Almost all of the people who have begun spending $50 or more at Red Label since the discount program began are longtime customers who have increased the average amount of their shopping bills by making fewer trips.- it's the only answer that says the actual amoun spend by customers remains tha same on overall, which weakens tha conclusion that the program was a success.


I agree with E
Re: CR 30:2/30   [#permalink] 16 Mar 2008, 08:25
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