zoezhuyan
GMATNinjaTwo
Responding to a question from the retired thread...
zoezhuyan, (B) does not say that customers will not REALIZE the sale price. It just means that they won't grow accustomed to it. In other words, if you are NOT accustomed to a sale price, you will be excited by the discount. But once you grow accustomed to it, you will EXPECT the lower price. If you are accustomed the sale price and the price is then RAISED back to the original, you might not want to buy the product anymore. You became so used to the sale price that the original price now seems like a rip off!
I hope that helps.
Ohhh, no, I misunderstood it again.
in fact, B says the duration of promotion is so short that people haven't accustomed to the sales price, people soon buy commidities on regualr price,
so maybe people won't buy commidities because they want to wait another promotion, maybe they will buy commidities because they can't wait another promotion.
so it does not bearing on the argument, right?
Please point out
Thanks in advance
Have a nice dya
>_~
hi
GMATNinjaTwo.
my new interpretation on B
because of the short duration of promotion, the customers do not become used the sale price and the impact of promotion is weak, so they think buying commidities on regualr price is common action,
while, if the duration of promotion is long enough that customer view the low/sale price is normal new price, if the price goes back to formal regular price, which is higher than sale price, then customer would unwilling to buy them, leading decrease the sales.
another question come up,
my above new interpretation seems impact on retailers, I dont think it impacts on the manufacture's profits.
As per D,
I can think two scenarios -- promotion and non promotion, according to D, the total amount of production is the same when promotion as when no promotion
Scenario #1 promotion, -- the manufactures low their price to be $10 , then result in increase dramtic amount of productions, say 100, then the profit = 10*100 - cost
Scenario #2 non promtion -- the manufactures regular price is 15, the amount of prodctions is 100 as well, then the profit = 12*100 - cost,
so , we can see the profit during promotion is lower than that during non promotion.
Would you please point out my fault?
BTW, can you tell me the link that I can search SC and CR QOTDs ?
I get a link
https://gmatclub.com/forum/gmat-question-of-the-day-2017-edition-239951.html from signature of
GMATNinja, a one not easy to search,
I also get a link from GMATNinja's reply,
https://gmatclub.com/forum/search.php?search_id=tag&tag_id=1196, there are only SC QOTDs and search tag's spectrum does not narrow to the SC list of the link,
Thank in advance
Have a nice day
>_~