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Stay-dry Corp. plans to institute a marketing campaign in which it

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Stay-dry Corp. plans to institute a marketing campaign in which it  [#permalink]

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New post 25 Apr 2018, 02:50
3
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

73% (01:26) correct 27% (01:57) wrong based on 167 sessions

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Stay-dry Corp. plans to institute a marketing campaign in which it sells raincoats at the exits of subway stations during rainy weather. The raincoats will be sold at a price that is slightly higher than normal. The company thinks the sales of these higher - priced rain coats will be greater than normal sales of rain coats, because the purchasers of these rain coats will be forced to buy them if they do not want to get wet.

The author assumes which of the following about the purchasers of the raincoats in predicting the sales of the rain coats?


A Customers who do not feel immediate pressure to purchase will not do so.
B Normally priced raincoats are not profitable for Stay-dry Corp.
C Very few people buy Stay-drys normally priced raincoats.
D Stay-dry Corp. will have to stop selling normally priced raincoats when it starts selling higher priced raincoats.
E Most potential customers of Stay-drys higher priced raincoats will not have acquired a rain coat previously.

Source: Crackverbal

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Re: Stay-dry Corp. plans to institute a marketing campaign in which it  [#permalink]

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New post 26 Apr 2018, 05:06
3
Stay-dry Corp. plans to institute a marketing campaign in which it sells raincoats at the exits of subway stations during rainy weather. The raincoats will be sold at a price that is slightly higher than normal. The company thinks the sales of these higher - priced rain coats will be greater than normal sales of rain coats, because the purchasers of these rain coats will be forced to buy them if they do not want to get wet.

The author assumes which of the following about the purchasers of the raincoats in predicting the sales of the rain coats?


A Customers who do not feel immediate pressure to purchase will not do so. This is a contender, but still the wrong answer. This answer is too radical as it implies that people only buy rain coats when its raining. If you further develop this idea you will come to the conclusion that there wouldn't be any good reason that people would buy more raincoats during this promotion because the raincoats will be sold at a higher price and and as its the "normal" buying situation (its raining so people buy rain coats according to this logic).
B Normally priced raincoats are not profitable for Stay-dry Corp. Doesn't tell us anything about why sales will be boosted by increasing the price.
C Very few people buy Stay-drys normally priced raincoats. Same as B.
D Stay-dry Corp. will have to stop selling normally priced raincoats when it starts selling higher priced raincoats. This is relevant for the time when the higher prices are introduced. We still have sales at the normal price before and compare them to the sales at the higher price. This isn't an assumption made by the author.
E Most potential customers of Stay-drys higher priced raincoats will not have acquired a rain coat previously.This looks good. Using the negation technique: "Most potential customers of Stay-Dry's higher priced raincoats will have acquired a rain coat previously". If this was the case there wouldn't be any good reason why an increase in price should result in higher sales. Hence, its the correct answer.

I hope that helps :-)
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Re: Stay-dry Corp. plans to institute a marketing campaign in which it  [#permalink]

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New post 13 May 2018, 08:23
Assumption is something which makes the logic of argument complete and support conclusion but which on negation will make conclusion fall apart

For selling at Subway station strategy to work we need to find such choice which fulfill both the above mentioned criteria

Choice E does exactly that

Other choices will not have that impact

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Re: Stay-dry Corp. plans to institute a marketing campaign in which it &nbs [#permalink] 13 May 2018, 08:23
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