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Re: In a consumer behavior study, customers in a shop were [#permalink]
1
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broall
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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Can someone explain why A is wrong?
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Re: In a consumer behavior study, customers in a shop were [#permalink]
I go for E, as this strengthen the conclusion while C weakening it.


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Re: In a consumer behavior study, customers in a shop were [#permalink]
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A is circular reasoning.. X --> Y .. when asked to strengthen it. Option A is like X is true...

C is correct that says even though the VALUE of services is better than VALUE of cash discounts. People are choosing cash discounts over Services.
But requires an assumption that People can estimate or evaluate the value of services.


Hope this helps.
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Re: In a consumer behavior study, customers in a shop were [#permalink]
I totally get why C is correct. But in my approaches, I used to negate the choice and see if it weakens the conclusion. If that approach is applied here, it would not work. The negation would be that service values is not 20 percent greater than the discount value. Maybe it is 15 percent greater but even then the answer choice would strengthen the conclusion. Not sure how we apply the negation strategy approach here.
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Re: In a consumer behavior study, customers in a shop were [#permalink]
Bumping for further reviews and discussion , best explanation will be awarded a Kudos from my side :grin: :grin: :grin: :grin:


HOW DO YOU REJECT OPTION (B) ????
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Re: In a consumer behavior study, customers in a shop were [#permalink]
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Abhishek009
Bumping for further reviews and discussion , best explanation will be awarded a Kudos from my side :grin: :grin: :grin: :grin:


HOW DO YOU REJECT OPTION (B) ????

B is irrelevant, there could be possibilities that the customers are non returning. Why would they want the service for over a year, they will need it at the very moment. I would go a for a discount of 10 percent if I get a service of 10% cashback on any item for the remaining year. we need to show something which proves that monetary value was more important for customers
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Re: In a consumer behavior study, customers in a shop were [#permalink]
pra1785
Can someone explain why A is wrong?

option A is providing the discount more than what already offering , hence people will get attract so its not strengthen the conclusion , which is that people get attracted to cash discount more.
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Re: In a consumer behavior study, customers in a shop were [#permalink]
A- Amateur trap and placed at 1st option most people will view
B- This weakens the conclusion by suggesting that it was not monetary regard rather the time of the scheme which impacted customers' decision
C- Correct. Ensures that the monetary value of services was competitive enough to not discourage people
D- Does not help to reach the conclusion
E- Weakens the conclusion, if at all
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Re: In a consumer behavior study, customers in a shop were [#permalink]
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I am not able to understand why C is correct.

According to stimulus, we are saying that a flat 10% discount and not services benefit are prefered by the customer. As per option C, we are trying to weaken the stimulus by saying that the value of services was greater than the cash discount.

Please help to understand how C is correct
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In a consumer behavior study, customers in a shop were [#permalink]
EducationAisle

Can you explain your reasoning for option A?
This option explicitly mentions that if cash discount was 20%, 90 % would take the discount. Doesn't this strengthen the conclusion?
Please evaluate where am I going wrong.

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

Can you explain your reasoning for option A?
This option explicitly mentions that if cash discount was 20%, 90 % would take the discount. Doesn't this strengthen the conclusion?
Please evaluate where am I going wrong.

Thanks
Well, with 10% monetary discount, majority customers (67%) opted it.

So, it obviously comes as no surprise that with 20% discount, even more customers (90%) would opt for it.

In fact, with 100% discount, 100% customers would opt for it:).

Basically A is just talking about the monetary discount and is not bringing "additional service" into picture at all.

The reason why C wins is that it establishes a case that even when the "monetary value" of the services was great than monetary discount, customers STILL preferred monetary discount. This conclusively establishes that monetary discount has greater impact than additional service benefits on consumers’ purchasing decision.
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Re: In a consumer behavior study, customers in a shop were [#permalink]
EducationAisle

So we basically need an option that talks about both or compares the both?
Option A is just telling a pattern, which is known to all.

Am I right?
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Re: In a consumer behavior study, customers in a shop were [#permalink]
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krndatta
EducationAisle

So we basically need an option that talks about both or compares the both?
Option A is just telling a pattern, which is known to all.

Am I right?
Absolutely. Good job. You are right.
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Re: In a consumer behavior study, customers in a shop were [#permalink]
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

Can someone please explain why C is strengthening? Doesn't this answer choice weakens the conclusion?
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Re: In a consumer behavior study, customers in a shop were [#permalink]
Not satisfied with the original answer. Irrespective of "how" the monetary value is calculated, IF the monetary value is greater for services, and if customers still don't pick it, it implies that customers value "cash" over "services worth more cash", ie. customers do not care about monetary value.
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Re: In a consumer behavior study, customers in a shop were [#permalink]
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