GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 22 Oct 2019, 18:12

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

To entice customers away from competitors, Red Label supermarkets have

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 58427
To entice customers away from competitors, Red Label supermarkets have  [#permalink]

Show Tags

New post 04 Sep 2018, 05:08
16
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

75% (01:57) correct 25% (02:05) wrong based on 802 sessions

HideShow timer Statistics

Project CR Butler:Day 8:Critical Reasoning (CR2)


For all CR butler Questions Click Here

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.

_________________
Most Helpful Expert Reply
Veritas Prep GMAT Instructor
User avatar
V
Joined: 16 Oct 2010
Posts: 9701
Location: Pune, India
Re: To entice customers away from competitors, Red Label supermarkets have  [#permalink]

Show Tags

New post 18 Nov 2018, 22:53
4
2
Bunuel wrote:

Project CR Butler:Day 8:Critical Reasoning (CR2)


For all CR butler Questions Click Here

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.



Strategy: Give discounts on home appliances to customers who spend $50 or more on any shopping trip to Red Label.
Aim of the strategy: To entice customers away from competitors
Result: cash register receipts of $50 or more are up thirty percent since the beginning of the program. (So before the program, if there used to be 100 receipts of >$50, now there are 130 receipts of >$50)

Claim of executives: the discount program has been a huge success

Were they able to entice customers away from competitors, we don't know. Receipts of >$50 are up, we understand. But are those extra 30% due to new customers, we don't know.
Weaken the claim so find something that tells us that this jump is not because of new customers. That the program did not succeed in its aim.

(A) Most people who switched to Red Label after the program began spend more than $50 each time they shop at Red Label.
This could mean that there were some new customers. It is possible that some increase is due to old customers bumping up their bills but it is also possible that some increase is due to new customers too.

(B) Most people whose average grocery bill is less than $50 would not be persuaded to spend more by any discount program.
This implies that the old customers will not bump up their bills. So new $50 receipts could be because of new customers joining in.

(C) Most people who received discounts on home appliances through Red Label’s program will shop at Red Label after the program ends.
Irrelevant. What happens after the program ends is not under discussion yet.

(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 shows that the program was actually a success. New customers were enticed to shop at Red Label since most of the $50 receipts came from 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.
This weakens the claim. So most people who averaged $50 or more were old customers. They used to shop every week at Red label and total say $30 per week. Now, they shop once every 2 weeks and total $60 per trip. So that is why the >$50 receipts have increased.
So this shows that the program may not be a success.

Answer (E)
_________________
Karishma
Veritas Prep GMAT Instructor

Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options >
General Discussion
CR Forum Moderator
avatar
V
Joined: 25 Apr 2018
Posts: 637
GMAT 1: 680 Q49 V34
Reviews Badge CAT Tests
Re: To entice customers away from competitors, Red Label supermarkets have  [#permalink]

Show Tags

New post 13 Nov 2018, 08:07
1
+1 Kudos to the posts containing explanations for all the choices.
_________________
Please give kudos if you found my posts helpful!

Project CR Butler - 2 CR's everyday
Intern
Intern
avatar
B
Joined: 11 Dec 2015
Posts: 26
Location: India
GMAT 1: 640 Q50 V28
GMAT 2: 750 Q50 V42
GPA: 3.5
Reviews Badge
Re: To entice customers away from competitors, Red Label supermarkets have  [#permalink]

Show Tags

New post 13 Nov 2018, 15:17
1
IMO : E

(A) Most people who switched to Red Label after the program began spend more than $50 each time they shop at Red Label.

It strengthens the claim

(B) Most people whose average grocery bill is less than $50 would not be persuaded to spend more by any discount program.

These people whose grocery bills is less than $50 is not even considered in the argument . Hence , it does not affect the argument

(C) Most people who received discounts on home appliances through Red Label’s program will shop at Red Label after the program ends.

It somehow strengthens the claim as people attracted by discounts may become loyal to the red label

(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.

It is clearly a strengthener

(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.[/quote]

Bingo , It is weakening the argument by showing the alternative reason for increase in amount of more than $50 bills
Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2401
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: To entice customers away from competitors, Red Label supermarkets have  [#permalink]

Show Tags

New post 18 Nov 2018, 07:46
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.

Boil it down- 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.
Type - weaken

(A) Most people who switched to Red Label after the program began spend more than $50 each time they shop at Red Label. - Strengthens - it talks about new customers who might have been pushed by 50$ offer
(B) Most people whose average grocery bill is less than $50 would not be persuaded to spend more by any discount program. - Incorrect - It talks about a different group - people who spend less than 50$

(C) Most people who received discounts on home appliances through Red Label’s program will shop at Red Label after the program ends. - Strengthens - RL Supermarkets will successfully acquire new customers

(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 $50. - Mild strengthener -- The discount program brought new customers, though the average bill of such people has always been over 50$

(E) Almost all of the people who have begun spending $50 or more at Red Label since the discount program began are longtime customers who have increased the average amount of their shopping bills by making fewer trips. - Weakens - So most of these 50$ spenders are longtime customers(Not new) and also they are not spending more as a whole since the number of trips have been reduced

Answer E
_________________
When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
Senior Manager
Senior Manager
User avatar
P
Joined: 03 Mar 2017
Posts: 366
Reviews Badge CAT Tests
Re: To entice customers away from competitors, Red Label supermarkets have  [#permalink]

Show Tags

New post 18 Nov 2018, 23:08
VeritasKarishma wrote:
Bunuel wrote:

Project CR Butler:Day 8:Critical Reasoning (CR2)


For all CR butler Questions Click Here

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.



Strategy: Give discounts on home appliances to customers who spend $50 or more on any shopping trip to Red Label.
Aim of the strategy: To entice customers away from competitors
Result: cash register receipts of $50 or more are up thirty percent since the beginning of the program. (So before the program, if there used to be 100 receipts of >$50, now there are 130 receipts of >$50)

Claim of executives: the discount program has been a huge success

Were they able to entice customers away from competitors, we don't know. Receipts of >$50 are up, we understand. But are those extra 30% due to new customers, we don't know.
Weaken the claim so find something that tells us that this jump is not because of new customers. That the program did not succeed in its aim.

(A) Most people who switched to Red Label after the program began spend more than $50 each time they shop at Red Label.
This could mean that there were some new customers. It is possible that some increase is due to old customers bumping up their bills but it is also possible that some increase is due to new customers too.

(B) Most people whose average grocery bill is less than $50 would not be persuaded to spend more by any discount program.
This implies that the old customers will not bump up their bills. So new $50 receipts could be because of new customers joining in.

(C) Most people who received discounts on home appliances through Red Label’s program will shop at Red Label after the program ends.
Irrelevant. What happens after the program ends is not under discussion yet.

(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 shows that the program was actually a success. New customers were enticed to shop at Red Label since most of the $50 receipts came from 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.
This weakens the claim. So most people who averaged $50 or more were old customers. They used to shop every week at Red label and total say $30 per week. Now, they shop once every 2 weeks and total $60 per trip. So that is why the >$50 receipts have increased.
So this shows that the program may not be a success.

Answer (E)



Thanks for lucid explanation. So you mean to say that although the number of receipts has increased, the aim(To entice customers away from competitors) of Red Label supermarkets is not fulfilled.

Ans since the aim is not fulfilled, the program is not a huge success, thereby weakening the conclusion of the argument.

Correct???
_________________
--------------------------------------------------------------------------------------------------------------------------
All the Gods, All the Heavens, and All the Hells lie within you.
Manager
Manager
avatar
S
Joined: 04 Dec 2017
Posts: 93
Location: India
Concentration: Other, Entrepreneurship
Schools: ISB '20 (D)
GMAT 1: 570 Q36 V33
GMAT 2: 620 Q44 V32
GMAT 3: 720 Q49 V39
GPA: 3
WE: Engineering (Other)
Re: To entice customers away from competitors, Red Label supermarkets have  [#permalink]

Show Tags

New post 21 Feb 2019, 22:44
Meaning: To gain its competitors' customers, Red Label Supermarkets (RLS) has started a certain discount program inwhich customers whose bill amount is >50$ are given 30% discount on electronic items. As per RSL employees' claim, the program has succeeded in aim to gain compertitors' customers, that is gain new customers, because the cash register receipts of $50 or more are up thirty percent since the beginning of the program.

Logic: cash register receipts of $50 or more are up thirty percent since the beginning of the program therefore the discount program is successful in achieving its aim of gaining new customers.

Weaken the claim: to weaken the claim we need to prove that the 30% increase >50$ cash receipt is not because of new customers but because of old customers. This will prove that the program has not help RSL gain new customers but only the old customers have increased their spending per purchase (the reason for this can be anything).

Answer: E
GMAT Club Bot
Re: To entice customers away from competitors, Red Label supermarkets have   [#permalink] 21 Feb 2019, 22:44
Display posts from previous: Sort by

To entice customers away from competitors, Red Label supermarkets have

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne