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# Retail clothing stores

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VP
Joined: 12 Dec 2016
Posts: 1354

Kudos [?]: 47 [0], given: 1410

Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64

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19 Nov 2017, 21:04
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Difficulty:

25% (medium)

Question Stats:

72% (01:18) correct 28% (01:40) wrong based on 96 sessions

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Retail clothing stores should hold “one-day-only” sales to clear merchandise that has been returned because it is defective in some way. The stores should sell this merchandise for up to 70 percent less than the original retail price. Stores will find these sales to be an effective way of getting rid of defective merchandise as long as they inform customers that the discounted merchandise is nonreturnable.

The author assumes which of the following about the “one-day-only” sale merchandise in predicting the effectiveness of these sales?

A) The defects in the merchandise are not so significant that customers will be unwilling to pay even the sale price.

B) The rate of returns when merchandise is new makes these “one-day-only” sales key to a store’s profitability.

C) Too few shoppers purchase merchandise at full retail price.

D) If these sales become popular, stores will have to have them more often.

E) The majority of the “one-day-only” sale merchandise will be purchased by shoppers who would otherwise not shop at those stores.
[Reveal] Spoiler: OA

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Intern
Joined: 11 Jul 2017
Posts: 9

Kudos [?]: 1 [1], given: 2

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19 Nov 2017, 23:00
1
KUDOS
A. If I negate it, the argument weakens.

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Kudos [?]: 1 [1], given: 2

Senior Manager
Joined: 09 Mar 2017
Posts: 253

Kudos [?]: 91 [2], given: 465

Location: India
Concentration: Marketing, Organizational Behavior
WE: Information Technology (Computer Software)

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19 Nov 2017, 23:29
2
KUDOS
1. The stores should sell this merchandise for up to 70 percent less than the original retail price
2. (Assumption - Bridge the gap)
3. Stores will find these sales to be an effective way of getting rid of defective merchandise

Why would stores think that their plan would succeed? only if the sale goes successfully.
How will the sale go successfully? only if customers buy the defective products ignoring the defects.
Why would they ignore the defects? Only if "The defects in the merchandise are not so significant that customers will be unwilling to pay even the sale price."

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Kudos [?]: 91 [2], given: 465

VP
Joined: 12 Dec 2016
Posts: 1354

Kudos [?]: 47 [0], given: 1410

Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64

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19 Nov 2017, 23:40
tejasa07 wrote:
A. If I negate it, the argument weakens.

Sent from my ONEPLUS A5000 using GMAT Club Forum mobile app

correct, OA is A.

Kudos [?]: 47 [0], given: 1410

Re: Retail clothing stores   [#permalink] 19 Nov 2017, 23:40
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