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Manufacturers sometimes discount the price of a product to

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Re: Manufacturers sometimes discount the price of a product to  [#permalink]

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New post 09 Aug 2017, 01:27
why D is correct?

the manufacturer think that the retailers will pass the discount to customers and customers will buy more product, increasing profit substantially

D prove that the case is not like the case the manufacturer think. the retailer keep the discounted goods and sell latter , making the promotion unprofitable.

CR test us logic but we need to read very well to think in English. for non native, learning gmat is relearning of english more than learning gmat. this simple thinking gives you success on gmat.
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Re: Manufacturers sometimes discount the price of a product to  [#permalink]

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New post 09 Aug 2017, 03:51
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thangvietnam wrote:
why D is correct?

the manufacturer think that the retailers will pass the discount to customers and customers will buy more product, increasing profit substantially

D prove that the case is not like the case the manufacturer think. the retailer keep the discounted goods and sell latter , making the promotion unprofitable.



Hello Dear,

I've read the the answer choice differently than you.I believe it's worth sharing with you.

IMO,Correct Answer D supports the claim about the manufacturers' profit by indicating that even though manufacturers increase their profit with their promotional approach,manufacturers can increase their profit even more without their promotional offerings,by which actually the retailers make more money than the manufacturers.

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Re: Manufacturers sometimes discount the price of a product to  [#permalink]

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New post 23 Aug 2017, 10:21
D is correct.

Reasoning: During promotion periods, manufacturers discount prices and dramatically increase the amount of product sold to retailers. However, manufacturers might make more profit without the promotions.
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Re: Manufacturers sometimes discount the price of a product to  [#permalink]

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New post 20 Mar 2018, 06:43
Quote:
Manufacturers sometimes discount the price of a product to retailers for a promotion period when the product is advertised to consumers. Such promotions often results in a dramatic increase in amount of product sold by the manufacturers to retailers. Nevertheless, the manufacturers could often make more profit by not holding the promotion.

Which of the following, if true, most strongly supports the claim above about the manufacturer's profit?

A. The amount of discount generally offered by manufacturers to retailers is carefully calculated to represent the minimum needed to draw consumer's attention to the product.
B. For many consumer products the period of advertising discounted prices to consumers is about a week, not sufficiently long for consumers to become used to the sale price.
C. For products that are not newly introduced, the purpose of such promotions is to keep the product in the minds of consumers and to attract consumers who are currently using competing products.
D. During such a promotion retailers tend to accumulate in their warehouses inventory bought at discount; they then sell much of it later at their regular price.
E. If a manufacturer fails to offer such promotions but its competitor offers them, that competitor will tend to attract consumers away from the manufacturer's product.


Hi mikemcgarry, GMATNinjaTwo, GMATNinja, MagooshExpert Carolyn, sayantanc2k,

I think i must miss something on B , but i have no idea what's my problem, please help to clarify
B. For many consumer products the period of advertising discounted prices to consumers is about a week, not sufficiently long for consumers to become used to the sale price.
If the duration of promotion is so short that customers have not yet realised the sale price, then they possible to buy commidities at a regualr price ,which is higher than sale price, then it is apparent to increase the revenues of manufacture,

Does B mean supportable ?

Thanks in advance

Have a nice day

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Re: Manufacturers sometimes discount the price of a product to  [#permalink]

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New post 20 Mar 2018, 08:09
Edit: This discussion has retired. Find the new thread HERE


zoezhuyan wrote:
Quote:
Manufacturers sometimes discount the price of a product to retailers for a promotion period when the product is advertised to consumers. Such promotions often results in a dramatic increase in amount of product sold by the manufacturers to retailers. Nevertheless, the manufacturers could often make more profit by not holding the promotion.

Which of the following, if true, most strongly supports the claim above about the manufacturer's profit?

A. The amount of discount generally offered by manufacturers to retailers is carefully calculated to represent the minimum needed to draw consumer's attention to the product.
B. For many consumer products the period of advertising discounted prices to consumers is about a week, not sufficiently long for consumers to become used to the sale price.
C. For products that are not newly introduced, the purpose of such promotions is to keep the product in the minds of consumers and to attract consumers who are currently using competing products.
D. During such a promotion retailers tend to accumulate in their warehouses inventory bought at discount; they then sell much of it later at their regular price.
E. If a manufacturer fails to offer such promotions but its competitor offers them, that competitor will tend to attract consumers away from the manufacturer's product.


Hi mikemcgarry, GMATNinjaTwo, GMATNinja, MagooshExpert Carolyn, sayantanc2k,

I think i must miss something on B , but i have no idea what's my problem, please help to clarify
B. For many consumer products the period of advertising discounted prices to consumers is about a week, not sufficiently long for consumers to become used to the sale price.
If the duration of promotion is so short that customers have not yet realised the sale price, then they possible to buy commidities at a regualr price ,which is higher than sale price, then it is apparent to increase the revenues of manufacture,

Does B mean supportable ?

Thanks in advance

Have a nice day

>_~

zoezhuyan, this thread is now retired. I replied to your question in the new thread. Thanks!

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Re: Manufacturers sometimes discount the price of a product to &nbs [#permalink] 20 Mar 2018, 08:09

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