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SaveStop, a prominent convenience store chain,

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SaveStop, a prominent convenience store chain,  [#permalink]

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New post 12 Mar 2018, 19:43
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75% (01:10) correct 25% (01:32) wrong based on 134 sessions

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SaveStop, a prominent convenience store chain, sells some of its most popular items at a very low cost. Careful analysis of the chain's financial reports reveals that these items are actually sold at a loss to the company. Nonetheless, executives claim that the decision to offer these key items at such a low price is an essential component of the company's business strategy.
Which of the following, if true, most strongly justifies the claim made by SaveStop's executives?
A. In any SaveStop store, these popular products are sold at prices considered low by regional, not national, standards.
B. SaveStop's strategy will allow executives to negotiate with manufacturers for a lower cost for those popular products.
C. The location of SaveStop stores have been strategically located near the distribution centers of those popular products.
D. When consumers see the low costs of those popular products, they almost always conclude that the store has similarly low costs for all its products.
E. When SaveStop's products are compared to similar products sold at other convenience stores, the only criterion in which SaveStop outdoes its competitors is price.

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Re: SaveStop, a prominent convenience store chain,  [#permalink]

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New post 12 Mar 2018, 19:55
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I’m gonna go with Answer D because I.T. best supports the author’s claim.


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Re: SaveStop, a prominent convenience store chain,  [#permalink]

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New post 14 Apr 2018, 03:49
SaveStop, a prominent convenience store chain, sells some of its most popular items at a very low cost. Careful analysis of the chain's financial reports reveals that these items are actually sold at a loss to the company. Nonetheless, executives claim that the decision to offer these key items at such a low price is an essential component of the company's business strategy.
Which of the following, if true, most strongly justifies the claim made by SaveStop's executives?
A. In any SaveStop store, these popular products are sold at prices considered low by regional, not national, standards. - Ultimately prices of its popular products are low whether by any of the standards does not matter at all
B. SaveStop's strategy will allow executives to negotiate with manufacturers for a lower cost for those popular products. Its an after effect and not a strengthener
C. The location of SaveStop stores have been strategically located near the distribution centers of those popular products. INCORRECT, location of stores does not matters. Also it does not affects cost at all
D. When consumers see the low costs of those popular products, they almost always conclude that the store has similarly low costs for all its products. CORRECT, Strengthens the claim and they are able to recover the losses from its popular products from sale of other products too
E. When SaveStop's products are compared to similar products sold at other convenience stores, the only criterion in which SaveStop outdoes its competitors is price. Not relevant as here we are talking abt Savestop's products cost and not concerned with other competitors
Experts egmat mikemcgarry GMATNinja whether my reasoning is correct
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Re: SaveStop, a prominent convenience store chain, &nbs [#permalink] 14 Apr 2018, 03:49
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