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Homely Hotels has a customer loyalty program in which for every four n

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Homely Hotels has a customer loyalty program in which for every four n  [#permalink]

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New post 22 Feb 2017, 03:01
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A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

72% (01:27) correct 28% (01:55) wrong based on 159 sessions

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Source: McGraw Hill GMAT

Homely Hotels has a customer loyalty program in which for every four nights a customer spends at a Homely Hotel, he or she receives a coupon good for one free night at any Homely Hotel. Recently people have begun selling these coupons on the Internet for less than the cost of a night at a Homely Hotel. This marketing of coupons has resulted in decreased revenue for the Homely Hotel chain.

To discourage this undesirable trade in free-stay coupons, it would be best for Homely Hotels to restrict:

A. The number of coupons a customer can receive in one year.
B. Use of the coupons to the specific hotel in which they were issued.
C. The valid dates of the coupons to only the month immediately following the date of issue.
D. Use of the coupons to the recipient or people with the same last name.
E. Use of the coupons to Homely Hotel franchises that charge an equal or lesser nightly rate than the franchise that issued the coupon.

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Re: Homely Hotels has a customer loyalty program in which for every four n  [#permalink]

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New post 22 Feb 2017, 05:25
1
Homely Hotels has a customer loyalty program in which for every four nights a customer spends at a Homely Hotel, he or she receives a coupon good for one free night at any Homely Hotel. Recently people have begun selling these coupons on the Internet for less than the cost of a night at a Homely Hotel. This marketing of coupons has resulted in decreased revenue for the Homely Hotel chain.

To discourage this undesirable trade in free-stay coupons, it would be best for Homely Hotels to restrict:

A. The number of coupons a customer can receive in one year. Still possible to sell them.
B. Use of the coupons to the specific hotel in which they were issued. Still possible to sell them.
C. The valid dates of the coupons to only the month immediately following the date of issue. Still possible to sell them
D. Use of the coupons to the recipient or people with the same last name. Very unlikely to get a buyer for the voucher. Perfect!
E. Use of the coupons to Homely Hotel franchises that charge an equal or lesser nightly rate than the franchise that issued the coupon. Still possible to sell them
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Re: Homely Hotels has a customer loyalty program in which for every four n  [#permalink]

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New post 08 Aug 2018, 09:48
SajjadAhmad wrote:
Source: McGraw Hill GMAT

Homely Hotels has a customer loyalty program in which for every four nights a customer spends at a Homely Hotel, he or she receives a coupon good for one free night at any Homely Hotel. Recently people have begun selling these coupons on the Internet for less than the cost of a night at a Homely Hotel. This marketing of coupons has resulted in decreased revenue for the Homely Hotel chain.

To discourage this undesirable trade in free-stay coupons, it would be best for Homely Hotels to restrict:

A. The number of coupons a customer can receive in one year.
B. Use of the coupons to the specific hotel in which they were issued.
C. The valid dates of the coupons to only the month immediately following the date of issue.
D. Use of the coupons to the recipient or people with the same last name.
E. Use of the coupons to Homely Hotel franchises that charge an equal or lesser nightly rate than the franchise that issued the coupon.


Not a good argument. Even the correct answer choice is not perfect. What if people sell coupons in family and relatives? It is easier to plan this way to sell coupons. C seems much better than D
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Re: Homely Hotels has a customer loyalty program in which for every four n  [#permalink]

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New post 08 Aug 2018, 20:23
I got this correct... but how is this an inference question?
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Re: Homely Hotels has a customer loyalty program in which for every four n   [#permalink] 08 Aug 2018, 20:23
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