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# To entice customers away from competitors, Red Label

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Manager
Joined: 22 Jul 2009
Posts: 195

Kudos [?]: 540 [0], given: 6

Location: Manchester UK
To entice customers away from competitors, Red Label [#permalink]

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07 Dec 2009, 14:11
00:00

Difficulty:

(N/A)

Question Stats:

100% (00:25) correct 0% (00:00) wrong based on 4 sessions

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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, 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 they 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.

Someone pls try it...

Kudos [?]: 540 [0], given: 6

Manager
Joined: 13 Nov 2009
Posts: 63

Kudos [?]: 19 [0], given: 0

Schools: Columbia(RD-ding w/o int),
Re: To entice customers away from competitors [#permalink]

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07 Dec 2009, 15:35
Confused between C & E.
I would go with E.

Kudos [?]: 19 [0], given: 0

Senior Manager
Affiliations: PMP
Joined: 13 Oct 2009
Posts: 296

Kudos [?]: 175 [0], given: 37

Re: To entice customers away from competitors [#permalink]

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07 Dec 2009, 16:06
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, 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 they 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.

For me its D or E and I'd go with E, as per E there are no new customers (as suggested by executives claiming huge success of discount program bringing new customers away from competitors)
_________________

Thanks, Sri
-------------------------------
keep uppp...ing the tempo...

Press +1 Kudos, if you think my post gave u a tiny tip

Kudos [?]: 175 [0], given: 37

Manager
Joined: 28 Jul 2009
Posts: 150

Kudos [?]: 247 [0], given: 4

Re: To entice customers away from competitors [#permalink]

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08 Dec 2009, 00:31
E for sure

Kudos [?]: 247 [0], given: 4

Re: To entice customers away from competitors   [#permalink] 08 Dec 2009, 00:31
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