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05 Mar 2024, 07:30
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
82% (01:37) correct
18%
(01:50)
wrong
based on 176
sessions
History
Date
Time
Result
Not Attempted Yet
Large discount chains can make a profit even while offering low prices, because they buy goods in large quantities at favorable cost. This creates a problem for small retailers. If they try to retain their customers by lowering prices to match those of large discount chains, the result is a lower profit margin. But small retailers can retain their customer base without lowering prices if they offer exceptional service. Hence, small retailers that are forced to compete with large discount chains must offer exceptional service in order to retain their level of profitability.
The reasoning is flawed because it fails to take into account the possibility that
(A) not all large discount chains do in fact make a profit
(B) some large discount chains have lower profit margins than do some small retailers
(C) small retailers are often motivated by things other than the desire for profit
(D) not all small retailers are forced to compete with large discount chains
(E) exceptional service is not the only reason customers prefer small retail stores
The reasoning is flawed because it fails to take into account the possibility that
(A) not all large discount chains do in fact make a profit
(B) some large discount chains have lower profit margins than do some small retailers
(C) small retailers are often motivated by things other than the desire for profit
(D) not all small retailers are forced to compete with large discount chains
(E) exceptional service is not the only reason customers prefer small retail stores
05 Mar 2024, 08:59
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IMO E
Conclusion: Small retailers that are forced to compete with large discount chains must offer exceptional service in order to retain their level of profitability
(A) not all large discount chains do in fact make a profit
May be, but we are concerned about the effect of large chains (that make profit) on small retailers
(B) some large discount chains have lower profit margins than do some small retailers
Ok, so that is supporting reasoning mentioned above somewhat. that means exceptional service is a reason
(C) small retailers are often motivated by things other than the desire for profit
Ok, but they still have to retain level of profitability.
(D) not all small retailers are forced to compete with large discount chains
But we are concerned about small retailers who are forced to compete
(E) exceptional service is not the only reason customers prefer small retail stores
That looks fine. So there are other factor however author reasoning is "must offer". Even if he don't offer there are other factor to cover up
Conclusion: Small retailers that are forced to compete with large discount chains must offer exceptional service in order to retain their level of profitability
(A) not all large discount chains do in fact make a profit
May be, but we are concerned about the effect of large chains (that make profit) on small retailers
(B) some large discount chains have lower profit margins than do some small retailers
Ok, so that is supporting reasoning mentioned above somewhat. that means exceptional service is a reason
(C) small retailers are often motivated by things other than the desire for profit
Ok, but they still have to retain level of profitability.
(D) not all small retailers are forced to compete with large discount chains
But we are concerned about small retailers who are forced to compete
(E) exceptional service is not the only reason customers prefer small retail stores
That looks fine. So there are other factor however author reasoning is "must offer". Even if he don't offer there are other factor to cover up
05 Mar 2024, 09:07
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Bunuel
Attachment:
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BUt what if customers are interested in variety , Cost of goods etc.... Then the startegy of small retailer fail !!! Answer must hence be (E)
