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# In a consumer behavior study, customers in a shop were

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Senior CR Moderator
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In a consumer behavior study, customers in a shop were [#permalink]

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05 Aug 2017, 22:05
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75% (hard)

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47% (01:21) correct 53% (01:16) wrong based on 151 sessions

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In a consumer behavior study, customers in a shop were asked to avail one of two schemes offered on all electronic items. The first scheme gave a flat 10% discount while the other scheme offered additional service benefits but no monetary discount. Over a period of three months, it was found that 67% of consumers chose to go with the first scheme. This preference for financial discount was common for all electronic items. This study shows that monetary discount has greater impact than additional service benefits on consumers’ purchasing decision.

Which one of the following, if true, would most strengthen the conclusion drawn in the consumer behavior study?

A. If the cash discount was 20%, an estimate suggests that more than 90% customers would have opted for the cash discount.
B. The discount was at the time of purchase while the services were to be used over a period of a year.
C. The monetary value of services was 20% greater than the cash discount offered.
D. People preferred buying services for some electronic items but not for others.
E. The services were offered only on big brands while the discount was present on all brands

Source: ExpertsGlobal

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Re: In a consumer behavior study, customers in a shop were [#permalink]

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05 Aug 2017, 22:53
Ans -C
Why people prefer the first scheme is because of the monetary value to be more than that of cash discount
For eg say if an item cost is \$100 then cash discount would be \$10 and monetary discount would be \$12 so it is because monetary value people prefer first scheme not because of additional service benefits

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Re: In a consumer behavior study, customers in a shop were [#permalink]

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06 Aug 2017, 03:12
broall wrote:
In a consumer behavior study, customers in a shop were asked to avail one of two schemes offered on all electronic items. The first scheme gave a flat 10% discount while the other scheme offered additional service benefits but no monetary discount. Over a period of three months, it was found that 67% of consumers chose to go with the first scheme. This preference for financial discount was common for all electronic items. This study shows that monetary discount has greater impact than additional service benefits on consumers’ purchasing decision.

Which one of the following, if true, would most strengthen the conclusion drawn in the consumer behavior study?

A. If the cash discount was 20%, an estimate suggests that more than 90% customers would have opted for the cash discount.
B. The discount was at the time of purchase while the services were to be used over a period of a year.
C. The monetary value of services was 20% greater than the cash discount offered.
D. People preferred buying services for some electronic items but not for others.
E. The services were offered only on big brands while the discount was present on all brands

Source: ExpertsGlobal

i will go with C ...
service value = 20% greater that cash discount .., so calculation on projected amount makes the service value more lucrative than cash discount ...
but still 67% consumer opted for discount means consumer are more attracted to discount despite monetary benefit on service ...
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Re: In a consumer behavior study, customers in a shop were [#permalink]

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07 Aug 2017, 11:35
Can someone explain why A is wrong?
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Joined: 27 May 2017
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Re: In a consumer behavior study, customers in a shop were [#permalink]

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07 Aug 2017, 16:32
I go for E, as this strengthen the conclusion while C weakening it.

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In a consumer behavior study, customers in a shop were [#permalink]

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08 Aug 2017, 06:10
1
pra1785 wrote:
Can someone explain why A is wrong?

Hi Pra,

I too debated between (A) and (C); however, (C) is clearly the right choice. You are trying to strengthen the argument. In (C), you are shown that even though the discount for the service was GREATER than the cash discount, a majority of people took the cash, thus strengthening the argument that, to paraphrase the argument, 'cash is king'.

(A) is incorrect because it talks about an increase in the discount alone. While this shows people care about cash discounts, it doesn't help clarify its relationship to the services provided. The original conclusion: This study shows that monetary discount has greater impact than additional service benefits on consumers’ purchasing decision. You need to show the relationship to strengthen the argument, otherwise we are just left with the knowledge that people like money and discounts.

I hope this helps!
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In a consumer behavior study, customers in a shop were   [#permalink] 08 Aug 2017, 06:10
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