It is currently 23 Nov 2017, 02:42

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# To entice customers away from competitors, Red Label

Author Message
Director
Joined: 05 Jan 2008
Posts: 684

Kudos [?]: 620 [0], given: 0

To entice customers away from competitors, Red Label [#permalink]

### Show Tags

16 Mar 2008, 08:13
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

### HideShow timer Statistics

To entice customers away from competitors, Red Label supermarkets have begun offering discounts on home appliances to customers who spend \$50 or more on any shopping trip to Red Label. Red Label executives claim that the discount program has been a huge success, since cash register receipts of \$50 or more are up thirty percent since the beginning of the program.

Which of the following, if true, would most seriously weakens the claim of the Red Label executives?

(A) Most people who switched to Red Label after the program began spend more than \$50 each time the shop at Red Label.
(B) Most people whose average grocery bill is less than \$50 would not be persuaded to spend more by any discount program.
(C) Most people who received discounts on home appliances through Red Label’s program will shop at Red Label after the program ends.
(D) Since the beginning of the discount program, most of the people who spend \$50 or more at Red Label are people who have never before shopped there and whose average grocery bill has always been higher than \$50.
(E) Almost all of the people who have begun spending \$50 or more at Red Label since the discount program began are longtime customers who have increased the average amount of their shopping bills by making fewer trips.
_________________

Persistence+Patience+Persistence+Patience=G...O...A...L

Kudos [?]: 620 [0], given: 0

Manager
Joined: 16 Mar 2008
Posts: 66

Kudos [?]: 7 [0], given: 0

### Show Tags

16 Mar 2008, 08:22
I will go with E , since it states that the customers are still spending the same and are also getting discounts which in effect would be a loss making proposition for Red Label

Kudos [?]: 7 [0], given: 0

SVP
Joined: 28 Dec 2005
Posts: 1543

Kudos [?]: 186 [0], given: 2

### Show Tags

16 Mar 2008, 09:20
E for me as well, hoping Im right

Where are these questions from, by the way ?

Kudos [?]: 186 [0], given: 2

Manager
Joined: 11 Apr 2007
Posts: 143

Kudos [?]: 45 [0], given: 0

### Show Tags

16 Mar 2008, 09:25
prasannar wrote:
To entice customers away from competitors, Red Label supermarkets have begun offering discounts on home appliances to customers who spend \$50 or more on any shopping trip to Red Label. Red Label executives claim that the discount program has been a huge success, since cash register receipts of \$50 or more are up thirty percent since the beginning of the program.

Which of the following, if true, would most seriously weakens the claim of the Red Label executives?

(A) Most people who switched to Red Label after the program began spend more than \$50 each time the shop at Red Label. - this strengthens the aguement, by showing that sales increased becasue of the programs by attacting other customers.
(B) Most people whose average grocery bill is less than \$50 would not be persuaded to spend more by any discount program. - it doesnt say anything about the rest of the customers, who might be in a larger percent
(C) Most people who received discounts on home appliances through Red Label’s program will shop at Red Label after the program ends. this means that it's not the program is the cause for the large incease in sales of these customers, they would shop anyway
(D) Since the beginning of the discount program, most of the people who spend \$50 or more at Red Label are people who have never before shopped there and whose average grocery bill has always been higher than \$50. - This strengthens the arguement saying that the program was the cause in attracting new customers
(E) Almost all of the people who have begun spending \$50 or more at Red Label since the discount program began are longtime customers who have increased the average amount of their shopping bills by making fewer trips.- it's the only answer that says the actual amoun spend by customers remains tha same on overall, which weakens tha conclusion that the program was a success.

I agree with E

Kudos [?]: 45 [0], given: 0

Re: CR 30:2/30   [#permalink] 16 Mar 2008, 09:25
Display posts from previous: Sort by

# To entice customers away from competitors, Red Label

Moderators: GMATNinjaTwo, GMATNinja

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.