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Extensive research has shown that the effects of short-term

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New post 25 Jan 2016, 20:28
3.The primary purpose of the passage is to
E. explain the effects of a certain strategy and the primary motivations for adopting it.
The first passage introduced short-term price promotions, the second passage discussed the consequences of short-term price promotions and the last passage mentioned why managers used this strategy. Choice E covered all of mentioned-above information.

4. 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?
B. Customers come to regard the promotional price as the fair price and the regular price as excessive.
D. Customers who have not previously bought the promoted brand are almost never persuaded to do so by the short-term price promotions.
Three others choices are quite easily to be moved. Choice B mentioned the opinion of loyal customer, not new customers.
Choice D is correct since this sentence "people seldom buy an unfamiliar brand merely because the price is reduced."

5. The passage suggests that evidence for price promotions’ “effect on the bottom line” (Last line ) is provided by
B the frequency with which price promotions occur
4 other choices are all mentioned in the passage, so just choice B is not. I think that choice B is correct since it is as a conclusion of 4 remaining choices.

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New post 27 Jan 2016, 07:28
when a passage is easy, the question can still be hard.
this is an example of the case.

ability to answer a question depend on ability to infer from a sentence in a passage. this inference require a full comprehention of a few sentences. this inference is quite difference from reading skill for a main idea and structure of passage

so we need the second skill, inference skill for RC. luckily, this skill is more easy to master than the reading skill.
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New post 31 Jan 2016, 12:33
For question 5, I also marked as C. Below is my reasoning:

Author is in someway criticizing the strategy of short-term pricing providing evidence that "it attracts virtually no new customers in the first place". And in the last paragraph tries to emphasize the point that this strategy is run under loss.

In the last line author provides reason that management is reluctant to stop this because of the "increase in sales" standpoint ignoring the negative effect --> bottom line.

Comparing the options in this line of thought --> C becomes an optimal choice.

Please let me know if my reasoning is flawed.

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New post 19 Jul 2016, 20:57
ankit0411 wrote:
vwjetty wrote:
Financier wrote:
Can anybody explain the subtle line between these two choises? Am I right thinking that C is correct, but D portraites much bigger picture?

The passage suggests that evidence for price promotions’ “effect on the bottom line” (line 40) is provided by
A the lack of lingering aftereffects from price promotions
B the frequency with which price promotions occur
C price promotions’ inability to attract new customers
D price promotions’ recognizable effect on sales
E the legitimate uses to which management can put price promotions

Thanks.


yeah i went with C on the last one as well. Please explain. Thanks.



There is still no explanation for Q5 ? Can anyone please explain the last ques ?



The first sentence of the last para states the below:

"So why do companies spend so much on price promotions? Clearly price promotions are generally run at a loss, otherwise there would be more of them. "
Clearly, the author says that the price promotions are not worthy to companies. Had they been, there would be more occurrences of price promotions. From this, we can infer that the answer would be 'B'.

We need to understand that this is a inference question. Hence we must be able to prove the answer by materials stated in the passage.

Hope this helps.

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New post 16 Aug 2016, 02:52
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The passage suggests that evidence for price promotions’ “effect on the bottom line” (Last line ) is provided by

First off, question is not about what is bottom line.

We have to find out relation between price promotions and effect on the bottom line. / The evidence used for that relationship.

"which is therefore reluctant to abandon this strategy despite its effect on the bottom line." so that means price promotion is negatively affecting bottom line, which is "recognizable increase in sales " now the evidence to prove that is given : "Clearly price promotions are generally run at a loss, otherwise there would be more of them" so the frequency is not that great. relation between price promotions and effect on the bottom line would have been positive there would be more "price promotion" thing.

so B the frequency with which price promotions occur

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New post 15 Apr 2017, 10:03
My answers are E D D
Time taken : 6 min 15 seconds.
Bottom line = sales .
But why OA for 3 is B not D ??

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New post 28 Apr 2017, 15:09
for qn 3 why B is the answer ?

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New post 29 Apr 2017, 07:48
Is this a passage from OG? If so, please let me know the edition no....

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New post 29 Apr 2017, 20:48
It took 8 minutes for me to solve.

The answer comes out out to be EDB.
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New post 01 Sep 2017, 02:25
Could not understand q5, please explain.

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New post 08 Sep 2017, 20:47
Hi Expert,
Can you please provide the OE for question 3(Q5)?
How does the frequency of promotions provide evidence?

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Re: Extensive research has shown that the effects of short-term [#permalink]

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New post 08 Sep 2017, 21:40
royrijit1 wrote:
The first sentence of the last para states the below:

"So why do companies spend so much on price promotions? Clearly price promotions are generally run at a loss, otherwise there would be more of them. "
Clearly, the author says that the price promotions are not worthy to companies. Had they been, there would be more occurrences of price promotions. From this, we can infer that the answer would be 'B'.

We need to understand that this is a inference question. Hence we must be able to prove the answer by materials stated in the passage.

Hope this helps.

i agree with your reference to "otherwise there would be more of them" but can u shed some light on what is the "bottom line" refer to on earth?
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Re: Extensive research has shown that the effects of short-term   [#permalink] 08 Sep 2017, 21:40

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