Extensive research has shown that the effects of short-term price prom

Look at the structure of the passage:

First para:
Effects of short-term price promotions on sales are themselves short-term. Companies’ hopes that promotions might have a positive aftereffect have not been borne out for reasons that researchers have been able to identify.

Second para:
A price promotion entices only a brand’s long-term or “loyal” customers; people seldom buy an unfamiliar brand merely because the price is reduced...

Third para
So why do companies spend so much on price promotions?
Clearly price promotions are generally run at a loss
While short-term price promotions can have legitimate uses, such as reducing excess inventory, it is the recognizable increase in sales that is their main attraction to management, which is therefore reluctant to abandon this strategy despite its effect on the bottom line.


Her purpose of writing the passage is the last line -
it is the recognizable increase in sales that is their main attraction to management, which is therefore reluctant to abandon this strategy despite its effect on the bottom line. - the motivation for adopting the strategy.
The author starts off by explaining why price promotions do not help the company. She then questions why the management still uses this strategy even though profit reduces? Then she reveals why the management does so - because of the recognisable increase in sales.


Q1:The primary purpose of the passage is to
A. compare the arguments in favor of a certain strategy with those against it
B. attack a certain strategy by enumerating its negative consequences
C. justify the use of a certain strategy in light of certain criticisms that have been made against it
D. advocate a particular strategy by arguing against an alternative
E. explain the effects of a certain strategy and the primary motivations for adopting it

The entire purpose of writing the passage was the big reveal - the recognisable increase in sales is the reason for using this strategy despite all its ill effects. That is why (E) makes sense.

The author's main concern is not to attack the strategy. If it were, then she would have said that these are the ill effects, so management should not use this strategy any more. But she doesn't do that. She questions why the management still uses it and then explains why. Hence (B) is not correct.