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Re: A local restaurant in a small town recently implemented a new [#permalink]
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Akshat181519 wrote:
abhikap14 wrote:
CaffeinatedCoder wrote:
A local restaurant in a small town recently implemented a new marketing strategy to attract more customers. The restaurant started offering a complimentary dessert to any customer who dines in during lunch hours on weekdays. The owner of the restaurant believes that this strategy will increase customer loyalty and, ultimately, improve the restaurant's overall profitability.

Which of the following, if true, most supports the owner's belief that the new marketing strategy will be successful?

A. The restaurant's lunch hour has seen a decrease in customer traffic in recent months.
B. The cost of the complimentary dessert is significantly lower than the average cost of a full meal at the restaurant.
C. Other restaurants in the area have recently implemented similar marketing strategies and have experienced increased customer loyalty.
D. The restaurant's lunch menu offers a variety of options to cater to different dietary preferences and restrictions.
E. Previous customer feedback surveys indicate that customers are more likely to return to the restaurant if they feel they have received good value for their money.



Argument:
Complimentary dessert --> Increased customer loyalty --> Profitability

Option C can be eliminated right away for being irrelevant. What other restaurants have done have very little implications over this particular restaurant.
Similarly for the same reason, eliminate option D

Please note that we are searching for the best possible answer and C,D arent.

Option B might seem tempting. But cost comparison of the meal, dessert has no linear relation with profitability (There might be some other factors as well)

Similarly option A too might seem tempting. But the argument here revolves around customer loyalty and achieving profitability via customer loyalty. The traffic at lunch hour doesn't seem to have any relation with these.

Option E is the best one. As the customer feedback shared can be linked directly with the introduction of dessert which may result into customer being satisfied and loyal.

PS - The above explanation might seem long but I tried to reasonify each and every option. One can directly come to option E just by reading and understanding the argument



so my problem with option E was - "customers are more likely to return to the restaurant if they feel they have received good value for their money." as the desserts was complementary , there shouldn't be a problem of money's worth.. not a very solid reason but thats what i thought initially


One can easily link getting a complimentary dessert to money's worth...
Like say Initially u dine for $100 and u pay $100 for it.
Now that u getting a complimentary dessert, u are actually paying the same $100 but getting say $110 worth of dining
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Re: A local restaurant in a small town recently implemented a new [#permalink]
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