GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 23 Sep 2018, 17:02

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Manufacturers sometimes discount the price of a product to

Author Message
Senior Manager
Joined: 29 Jun 2017
Posts: 418
Re: Manufacturers sometimes discount the price of a product to  [#permalink]

### Show Tags

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.
Director
Status: I don't stop when I'm Tired,I stop when I'm done
Joined: 11 May 2014
Posts: 542
GPA: 2.81
Re: Manufacturers sometimes discount the price of a product to  [#permalink]

### Show Tags

09 Aug 2017, 03:51
Top Contributor
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.

Thanks
_________________

Md. Abdur Rakib

Please Press +1 Kudos,If it helps
Sentence Correction-Collection of Ron Purewal's "elliptical construction/analogies" for SC Challenges

Status: It's now or never
Joined: 10 Feb 2017
Posts: 230
Location: India
GMAT 1: 650 Q40 V39
GPA: 3
WE: Consulting (Consulting)
Re: Manufacturers sometimes discount the price of a product to  [#permalink]

### Show Tags

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.
_________________

Class of 2019: Mannheim Business School
Class 0f 2020: HHL Leipzig

Senior Manager
Joined: 17 Sep 2016
Posts: 276
Re: Manufacturers sometimes discount the price of a product to  [#permalink]

### Show Tags

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 ?

Have a nice day

>_~
GMAT Club Verbal Expert
Joined: 20 Nov 2016
Posts: 278
Re: Manufacturers sometimes discount the price of a product to  [#permalink]

### Show Tags

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 ?

Have a nice day

>_~

--== Message from the GMAT Club Team ==--

THERE IS LIKELY A BETTER DISCUSSION OF THIS EXACT QUESTION.
This discussion does not meet community quality standards. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.

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

Go to page   Previous    1   2   3   [ 45 posts ]

Display posts from previous: Sort by

# Manufacturers sometimes discount the price of a product to

Moderators: GMATNinjaTwo, GMATNinja

## Events & Promotions

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.