Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized for You
we will pick new questions that match your level based on your Timer History
Track Your Progress
every week, we’ll send you an estimated GMAT score based on your performance
Practice Pays
we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:
Grab 20% off any Target Test Prep GMAT Focus plan during our Flash Sale. Just enter the coupon code FLASH20 at checkout to save up to $320. The offer ends on Tuesday, April 30.
Sayali narrates her experience of succeeding on the GMAT after 4 attempts & 2 years of preparations. Sayali achieved 99 percentile score on GMAT Focus edition after significantly improving her performance in verbal section of the GMAT
We present a collection of 30 GMAT Focus practice questions covering Problem Solving, Data Sufficiency, Data Insights, and Critical Reasoning. Take this GMAT practice quiz live with peers, analyze your GMAT study progress, and more.
Struggling with Table analysis questions on GMAT Data Insights? You're not alone! With typical accuracy rates hovering around 45% and average solving time of 3.25 minutes per question, Table analysis can be a real challenge.
After just 3 months of studying with the TTP GMAT Focus course, Conner scored an incredible 755 (Q89/V90/DI83) on the GMAT Focus. In this live interview, he shares how he achieved his outstanding 755 (100%) GMAT Focus score on test day.
In this conversation with Ankit Mehra, IESE MBA and CEO & Co-Founder, of GyanDhan, we will discuss how prospective MBA students can finance their MBA education with education loans and scholarships.
What do András from Hungary, Pablo from Mexico, Conner from the United States, Giorgio from Italy, Leo from Germany, and Rishab from India have in common? They all earned top scores on the GMAT Focus Edition using the Target Test Prep course!
What do András from Hungary, Conner from the United States, Giorgio from Italy, Leo from Germany, and Saahil from India have in common? They all earned top scores on the GMAT Focus Edition using the Target Test Prep course!
Extensive research has shown that the effects of short-term
[#permalink]
15 Jul 2008, 18:09
Extensive research has shown that the effects of short-term price promotions on sales are themselves Line short-term. Companies’ hopes that (5) promotions might have a positive aftereffect have not been borne out for reasons that researchers have been able to identify.
A price promotion entices only a brand’s (10) long-term or “loyal” customers; people seldom buy an unfamiliar brand merely because the price is reduced. They simply avoid paying more than they have to when one of (15) their customary brands is temporar- ily available at a reduced price. A price promotion does not increase the number of long-term customers of a brand, as it attracts virtually (20) no new customers in the first place. Nor do price promotions have linger- ing aftereffects for a brand, even negative ones such as damage to a brand’s reputation or erosion of (25) customer loyalty, as is often feared. So why do companies spend so much on price promotions? Clearly price promotions are generally run at a loss, otherwise there would (30) be more of them. And the bigger the increase in sales at promotion prices, the bigger the loss. While short-term price promotions can have legitimate uses, such as (35) reducing excess inventory, it is the recognizable increase in sales that is their main attraction to manage- ment, which is therefore reluctant to abandon this strategy despite its effect on the bottom line. -------------------------------------------------------------------------------- Q3: The primary purpose of the passage is to
* compare the arguments in favor of a certain strategy with those against it * attack a certain strategy by enumerating its negative consequences * justify the use of a certain strategy in light of certain criticisms that have been made against it * advocate a particular strategy by arguing against an alternative * explain the effects of a certain strategy and the primary motivations for adopting it -------------------------------------------------------------------------------- Q4: According to the passage, which of the following is the reason why short-term price promotions do not attract new long-term customers to a brand?
* Short-term price promotions do not produce an increase in sales. * Customers come to regard the promotional price as the fair price and the regular price as excessive. * Most customers select among competing products largely on the basis of price and very few are loyal to any particular brand. * Customers who have not previously bought the promoted brand are almost never persuaded to do so by the short-term price promotions. * Any customers that a brand gains by means of a short-term price promotion are liable to be lost when a competing brand has a similar promotion. -------------------------------------------------------------------------------- Q5: The passage suggests that evidence for price promotions’ “effect on the bottom line” (line 40) is provided by
* the lack of lingering aftereffects from price promotions * the frequency with which price promotions occur * price promotions’ inability to attract new customers * price promotions’ recognizable effect on sales * the legitimate uses to which management can put price promotions
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Still interested in this question? Check out the "Best Topics" block below for a better discussion on this exact question, as well as several more related questions.
Re: Extensive research has shown that the effects of short-term
[#permalink]
15 Jul 2008, 18:37
abhijit_sen wrote:
Extensive research has shown that the effects of short-term price promotions on sales are themselves Line short-term. Companies’ hopes that (5) promotions might have a positive aftereffect have not been borne out for reasons that researchers have been able to identify.
A price promotion entices only a brand’s (10) long-term or “loyal” customers; people seldom buy an unfamiliar brand merely because the price is reduced. They simply avoid paying more than they have to when one of (15) their customary brands is temporar- ily available at a reduced price. A price promotion does not increase the number of long-term customers of a brand, as it attracts virtually (20) no new customers in the first place. Nor do price promotions have linger- ing aftereffects for a brand, even negative ones such as damage to a brand’s reputation or erosion of (25) customer loyalty, as is often feared. So why do companies spend so much on price promotions? Clearly price promotions are generally run at a loss, otherwise there would (30) be more of them. And the bigger the increase in sales at promotion prices, the bigger the loss. While short-term price promotions can have legitimate uses, such as (35) reducing excess inventory, it is the recognizable increase in sales that is their main attraction to manage- ment, which is therefore reluctant to abandon this strategy despite its effect on the bottom line. -------------------------------------------------------------------------------- Q3: The primary purpose of the passage is to
* compare the arguments in favor of a certain strategy with those against it * attack a certain strategy by enumerating its negative consequences * justify the use of a certain strategy in light of certain criticisms that have been made against it * advocate a particular strategy by arguing against an alternative * explain the effects of a certain strategy and the primary motivations for adopting it -------------------------------------------------------------------------------- Q4: According to the passage, which of the following is the reason why short-term price promotions do not attract new long-term customers to a brand?
* Short-term price promotions do not produce an increase in sales. * Customers come to regard the promotional price as the fair price and the regular price as excessive. * Most customers select among competing products largely on the basis of price and very few are loyal to any particular brand. * Customers who have not previously bought the promoted brand are almost never persuaded to do so by the short-term price promotions. * Any customers that a brand gains by means of a short-term price promotion are liable to be lost when a competing brand has a similar promotion. -------------------------------------------------------------------------------- Q5: The passage suggests that evidence for price promotions’ “effect on the bottom line” (line 40) is provided by
* the lack of lingering aftereffects from price promotions * the frequency with which price promotions occur * price promotions’ inability to attract new customers * price promotions’ recognizable effect on sales * the legitimate uses to which management can put price promotions
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
gmatclubot
Re: Extensive research has shown that the effects of short-term [#permalink]