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Advanced CR: Credit Card Rewards

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Advanced CR: Credit Card Rewards [#permalink]

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New post 13 Jul 2015, 00:10
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A
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Difficulty:

  45% (medium)

Question Stats:

71% (01:50) correct 29% (02:08) wrong based on 390 sessions

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A certain credit-card company awards its customers bonus points for using its credit card. Customers can use accumulated points in the purchase of brand name merchandise by mail at prices lower than the manufacturers‘ suggested retail prices. At any given time, therefore, customers who purchase merchandise using the bonus points spend less than they would spend if they purchased the same merchandise in retail stores.

Which one of the following is an assumption on which the argument depends?

(A) The merchandise that can be ordered by mail using the bonus points is not oflcrcd at lower prices by other credit-card companies that award bonus points.

(B) The bonus points cannot be used by the credit-card customers in the purchase of brand name merchandise that is not available for purchase in retail stones.

(C) The credit-card company does not require its customers to accumulate a large number of bonus points before becoming eligible to order merchandise at prices lower than the manufacturers‘ suggested retail price.

(D) The amount credit-card customers pay for shipping the merchandise ordered by mail does not increase the amount customers spend to an amount greater than they would spend if they purchased the same merchandise in retail stores.

(E) The merchandise available to the company's credit-card customers using the bonus points is frequently sold in retail stores at prices that are higher than the manufacturers‘ suggested retail prices?

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New post 26 May 2017, 14:06
So, normally, in critical reasoning, all details given by the question will be either premises or a conclusion? There will be no useless information unless it is a definition or an explanation.
If so, is it necessary to pay attention to the conclusion keywords?
Also, should I read words in premises carefully or I can just read the big picture and focus on the conclusion and the question?
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New post 26 May 2017, 15:10
Negate D - the argument just simply breaks down...
D should be the answer.
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New post 28 Jul 2017, 05:08
there is a question with the same topic about credit and the bonus points, but it has a different pattern. The assumption of that question is that customers must not purchase at stores without credit card.

Here, the assumption is about the amount spent by customers.
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New post 31 Jul 2017, 07:08
Can someone explain why C is wrong?

'The credit-card company does not require its customers to accumulate a large number of bonus points before becoming eligible to order merchandise at prices lower than the manufacturers‘ suggested retail price.'


If the company does require the customers to accumulate a large number of bonus (by spending more) then technically the customer is spending more money to buy the product compared to the retail store....

Can someone explain where any reasoning is wrong
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Re: Advanced CR: Credit Card Rewards [#permalink]

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New post 31 Jul 2017, 07:20
pra1785 wrote:
Can someone explain why C is wrong?

'The credit-card company does not require its customers to accumulate a large number of bonus points before becoming eligible to order merchandise at prices lower than the manufacturers‘ suggested retail price.'


If the company does require the customers to accumulate a large number of bonus (by spending more) then technically the customer is spending more money to buy the product compared to the retail store....

Can someone explain where any reasoning is wrong


Hi pra1785 ,

Here I go:

Notice that the conclusion is about getting a product via mail using points and getting a product from retail stores.

Even if the company is saying "hey guys lets accumulate the points first", then also once accumulated the product bought will be lower than the product bought from retail stores.

Notice that your scope here is just related to the product and not the spending.

The customer is actually not spending more to buy that product. The spending on the card is his usual spending and once the points are present, he is good to go.

One thing you need to consider here is that Premise says he accumulates the points first and then go for the product.

So, by saying that accumulate more, you are somehow trying to break the premise.

Let me know if you wanna discuss why D is correct. :)
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Re: Advanced CR: Credit Card Rewards [#permalink]

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New post 31 Jul 2017, 07:30
abhimahna wrote:
pra1785 wrote:
Can someone explain why C is wrong?

'The credit-card company does not require its customers to accumulate a large number of bonus points before becoming eligible to order merchandise at prices lower than the manufacturers‘ suggested retail price.'


If the company does require the customers to accumulate a large number of bonus (by spending more) then technically the customer is spending more money to buy the product compared to the retail store....

Can someone explain where any reasoning is wrong


Hi pra1785 ,

Here I go:

Notice that the conclusion is about getting a product via mail using points and getting a product from retail stores.

Even if the company is saying "hey guys lets accumulate the points first", then also once accumulated the product bought will be lower than the product bought from retail stores.

Notice that your scope here is just related to the product and not the spending.

The customer is actually not spending more to buy that product. The spending on the card is his usual spending and once the points are present, he is good to go.

One thing you need to consider here is that Premise says he accumulates the points first and then go for the product.

So, by saying that accumulate more, you are somehow trying to break the premise.

Let me know if you wanna discuss why D is correct. :)


Hi,

I am a little confused. The conclusion doesn't state getting a product via mail.... Are we taking this for granted here?
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Re: Advanced CR: Credit Card Rewards [#permalink]

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New post 31 Jul 2017, 07:35
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pra1785 wrote:
Hi,

I am a little confused. The conclusion doesn't state getting a product via mail.... Are we taking this for granted here?


Hi pra1785 ,

The below premise stats they can buy with points by mail. Since this is a premise, we cannot break it.

Customers can use accumulated points in the purchase of brand name merchandise by mail at prices lower than the manufacturers‘ suggested retail prices.

Thus, the conclusion about buying with points has to be via mail.

Does that make sense?
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Re: Advanced CR: Credit Card Rewards [#permalink]

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New post 31 Jul 2017, 07:37
abhimahna wrote:
pra1785 wrote:
Hi,

I am a little confused. The conclusion doesn't state getting a product via mail.... Are we taking this for granted here?


Hi pra1785 ,

The below premise stats they can buy with points by mail. Since this is a premise, we cannot break it.

Customers can use accumulated points in the purchase of brand name merchandise by mail at prices lower than the manufacturers‘ suggested retail prices.

Thus, the conclusion about buying with points has to be via mail.

Does that make sense?


Yes! That makes sense. I completed disregarded the premise and focused only on the conclusion. My bad. Thank you so much
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Re: Advanced CR: Credit Card Rewards [#permalink]

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New post 07 Aug 2017, 23:05
@Asac123

Option A takes a comparison of this CC company with other CC companies whereas the entire argument revolves around comparison of this CC company with Retail stores.
So,A is out of scope.

D is the OA as on Negation,ths conclusion fails.

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New post 06 Dec 2017, 23:53
this question is from LSAT and it has appeared in both powerscore and manhattan forums.
Nevertheless, the pattern in D does look like a pattern in a gmat question.
Advanced CR: Credit Card Rewards   [#permalink] 06 Dec 2017, 23:53
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