Last visit was: 26 Apr 2024, 21:06 It is currently 26 Apr 2024, 21:06

Close
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
Your Progress

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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
SORT BY:
Date
Tags:
Show Tags
Hide Tags
Retired Moderator
Joined: 10 Oct 2016
Status:Long way to go!
Posts: 1144
Own Kudos [?]: 6123 [42]
Given Kudos: 65
Location: Viet Nam
Send PM
Most Helpful Reply
Current Student
Joined: 31 Jul 2017
Status:He came. He saw. He conquered. -- Going to Business School -- Corruptus in Extremis
Posts: 1734
Own Kudos [?]: 5743 [9]
Given Kudos: 3054
Location: United States (MA)
Concentration: Finance, Economics
Send PM
General Discussion
Intern
Intern
Joined: 31 Jan 2017
Posts: 41
Own Kudos [?]: 14 [2]
Given Kudos: 210
Send PM
Current Student
Joined: 14 Nov 2014
Posts: 451
Own Kudos [?]: 363 [1]
Given Kudos: 54
Location: India
GMAT 1: 700 Q50 V34
GPA: 3.76
Send PM
Re: In a consumer behavior study, customers in a shop were [#permalink]
1
Kudos
broall wrote:
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 ...
Manager
Manager
Joined: 20 Jan 2016
Posts: 147
Own Kudos [?]: 128 [1]
Given Kudos: 64
Send PM
Re: In a consumer behavior study, customers in a shop were [#permalink]
1
Kudos
Can someone explain why A is wrong?
Intern
Intern
Joined: 27 May 2017
Posts: 10
Own Kudos [?]: 6 [0]
Given Kudos: 0
Send PM
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.


Sent from my iPhone using GMAT Club Forum
Senior Manager
Senior Manager
Joined: 26 Aug 2016
Posts: 450
Own Kudos [?]: 393 [1]
Given Kudos: 204
Location: India
Concentration: Operations, International Business
GMAT 1: 690 Q50 V33
GMAT 2: 700 Q50 V33
GMAT 3: 730 Q51 V38
GPA: 4
WE:Information Technology (Consulting)
Send PM
Re: In a consumer behavior study, customers in a shop were [#permalink]
1
Kudos
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.
Manager
Manager
Joined: 23 Oct 2012
Posts: 50
Own Kudos [?]: 19 [0]
Given Kudos: 49
Location: India
GMAT 1: 720 Q50 V38
Send PM
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.
Board of Directors
Joined: 11 Jun 2011
Status:QA & VA Forum Moderator
Posts: 6072
Own Kudos [?]: 4690 [0]
Given Kudos: 463
Location: India
GPA: 3.5
WE:Business Development (Commercial Banking)
Send PM
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) ????
Manager
Manager
Joined: 23 Oct 2012
Posts: 50
Own Kudos [?]: 19 [1]
Given Kudos: 49
Location: India
GMAT 1: 720 Q50 V38
Send PM
Re: In a consumer behavior study, customers in a shop were [#permalink]
1
Kudos
Abhishek009 wrote:
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
Intern
Intern
Joined: 13 Jun 2013
Posts: 19
Own Kudos [?]: 1 [0]
Given Kudos: 2
Location: India
GMAT 1: 620 Q49 V27
Send PM
Re: In a consumer behavior study, customers in a shop were [#permalink]
pra1785 wrote:
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.
Intern
Intern
Joined: 20 Aug 2019
Posts: 32
Own Kudos [?]: 40 [0]
Given Kudos: 66
Location: Malaysia
Concentration: Strategy, General Management
GMAT 1: 630 Q40 V36
GPA: 4
Send PM
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
Intern
Intern
Joined: 14 Sep 2020
Posts: 8
Own Kudos [?]: 1 [1]
Given Kudos: 4
Send PM
Re: In a consumer behavior study, customers in a shop were [#permalink]
1
Kudos
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
Senior Manager
Senior Manager
Joined: 09 Feb 2020
Posts: 385
Own Kudos [?]: 41 [0]
Given Kudos: 433
Location: India
Send PM
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
CEO
CEO
Joined: 27 Mar 2010
Posts: 3675
Own Kudos [?]: 3528 [2]
Given Kudos: 149
Location: India
Schools: ISB
GPA: 3.31
Send PM
Re: In a consumer behavior study, customers in a shop were [#permalink]
2
Kudos
Expert Reply
krndatta wrote:
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.
Senior Manager
Senior Manager
Joined: 09 Feb 2020
Posts: 385
Own Kudos [?]: 41 [0]
Given Kudos: 433
Location: India
Send PM
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?
CEO
CEO
Joined: 27 Mar 2010
Posts: 3675
Own Kudos [?]: 3528 [1]
Given Kudos: 149
Location: India
Schools: ISB
GPA: 3.31
Send PM
Re: In a consumer behavior study, customers in a shop were [#permalink]
1
Kudos
Expert Reply
krndatta wrote:
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.
Intern
Intern
Joined: 24 Sep 2023
Posts: 2
Own Kudos [?]: 0 [0]
Given Kudos: 1
Send PM
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?
GMAT Club Bot
Re: In a consumer behavior study, customers in a shop were [#permalink]
Moderators:
GMAT Club Verbal Expert
6923 posts
GMAT Club Verbal Expert
238 posts
CR Forum Moderator
832 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne