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CR1000: Red Label Supermarkets

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Manager
Joined: 07 Mar 2007
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02 Sep 2007, 15:25
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72% (00:15) correct 28% (00:29) wrong based on 20 sessions

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Hi All
So I came across a CR 1000 question and I'm not sure if the OA is right . If it is, I don't agree with it. I'm curious to see which answer I get from you all. Please explain your reasoning. Here it is!

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, 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 they 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.

I also did a search on this question but found nothing!!
[Reveal] Spoiler: OA

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VP
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Re: CR1000: Red Label Supermarkets [#permalink]

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02 Sep 2007, 15:36
Hi All
So I came across a CR 1000 question and I'm not sure if the OA is right . If it is, I don't agree with it. I'm curious to see which answer I get from you all. Please explain your reasoning. Here it is!

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, 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 they 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.

I also did a search on this question but found nothing!!

Clear E.
The program is not a success because most people are long time customers + the spend more because they made fewer trips.

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Manager
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Re: CR1000: Red Label Supermarkets [#permalink]

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02 Sep 2007, 15:39
Thanks...But couldn't the fewer trips be related to the program?
Can you also explain your reasoning behind eliminating Choice D?

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Re: CR1000: Red Label Supermarkets [#permalink]

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02 Sep 2007, 15:44
Hi All
So I came across a CR 1000 question and I'm not sure if the OA is right . If it is, I don't agree with it. I'm curious to see which answer I get from you all. Please explain your reasoning. Here it is!

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, 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 they 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.

I also did a search on this question but found nothing!!

From there I shorlisted D and E.
Pay attention to the first sentence of the passage.

D is out as most of the customers who shopped over \$50 are the ones who came to the shop at the store for the first time after the promotion had began. which means promotion might have enticed those customers from competitors. it is somehow supporting the claim.

E. is right cuz. regular customers who increased their bills earlier by making few trips. so they did not spend over 50 dollars because of the offer but they had increased it by making few trips and by the time of the offer they had alredy been spending more.
so no customer was enticed, this one weakens the claim.

any ideas?

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Re: CR1000: Red Label Supermarkets [#permalink]

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02 Sep 2007, 15:47
Thanks...But couldn't the fewer trips be related to the program?
Can you also explain your reasoning behind eliminating Choice D?

Yes, fewer trips are related to the program. However, we are trying to weaken the claim of executive that the program is a success. E weakens by showing that the 30% rise in number is actually short-term since everyone who spends \$50 and more are existing customers that make fewer trips.

D strengthens the argument because it said that new customers are coming in.

Last edited by bkk145 on 02 Sep 2007, 15:53, edited 1 time in total.

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Director
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Re: CR1000: Red Label Supermarkets [#permalink]

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02 Sep 2007, 15:47
Hi All
So I came across a CR 1000 question and I'm not sure if the OA is right . If it is, I don't agree with it. I'm curious to see which answer I get from you all. Please explain your reasoning. Here it is!

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, 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 they 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.

I also did a search on this question but found nothing!!

E is fine,

The program`s goal was to attract customers from competitors. But the only evidence the text suggests is that number of reciepts over \$50 has increased. Based on this evidence the excecutive is claiming that the program was successfull, implies the excecutive believes the program attracs new customers, or customers from COMPETITORS.

If the increase in over \$50 reciepts are due to PRESENT customers` spending more money in one purchase (in one trip) instead of making many trips. Then the claim that the program was success is wrong. Let`s say customer A was making 3 trips each week and spend on each \$20, after the program he decided to make one trip and spend \$60 (over 50) to recieve disount. So this customer A is not cuntomer of COMPERTITORS, it is present customer, who is simly making fewer trips.

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Manager
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Re: CR1000: Red Label Supermarkets [#permalink]

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02 Sep 2007, 21:11
Its E.

D actually supports the claim rather than weakinning it.
It means that more people have been attracted to the store.

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Manager
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Re: CR1000: Red Label Supermarkets [#permalink]

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03 Sep 2007, 13:12
Thanks for the help everyone . I see how D strengthens the argument now!

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Re: CR1000: Red Label Supermarkets   [#permalink] 03 Sep 2007, 13:12
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