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varunmaheshwari
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Manufacturers issue cents-off coupons to get consumers to try their Updated on: 24 Jan 2019, 05:38
Originally posted by varunmaheshwari on 04 Sep 2011, 06:48.
Last edited by Bunuel on 24 Jan 2019, 05:38, edited 1 time in total.
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B
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90% (01:28) correct 10% (01:41) wrong based on 1541 sessions

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Manufacturers issue cents-off coupons to get consumers to try their brand of product with the hope that the consumers who try their brand will switch their brand loyalty. So in the initial marketing of their new brand X, Hartman Industries should issue cents-off coupons, thereby attracting a large segment of potential consumers as loyal customers.

Which of the following, if true, casts the most serious doubt on the likelihood that the marketing strategy recommended above will have the result that is claimed?


(A) Many consumers are unlikely to try new brands of products unless offered an inducement to do so.

(B) The consumers whose purchases are strongly influenced by cents-off coupons tend not to become loyal customers of any particular brand.

(C) Many grocery stores attract customers by doubling the face value of manufacturer's coupons.

(D) Typically less than one-third of the coupons issued by a manufacturer are redeemed by consumers.

(E) A marketing campaign that uses cents-off coupons is most effective when combined with a television advertising campaign.
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B
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Manufacturers issue cents-off coupons to get consumers to try their 04 Sep 2011, 09:05
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varunmaheshwari
Manufacturers issue cents-off coupons to get consumers to try their brand of product with the hope that the consumers who try their brand will switch their brand loyalty. So in the initial marketing of their new brand X, Hartman Industries should issue cents-off coupons, thereby attracting a large segment of potential consumers as loyal customers.

Claim: Issuing cent-off coupons for the new products of brand X will make the products' consumers a loyal customer to brand X.

Which of the following, if true, casts the most serious doubt on the likelihood that the marketing strategy recommended above will have the result that is claimed?
Find a weakener of the claim.

A. Many consumers are unlikely to try new brands of products unless offered an inducement to do so.
Inducement is offered as cent-off coupons, but will that inducement make the consumer a loyal customer? Can't say. Irrelevant information.

B. The consumers whose purchases are strongly influenced by cents-off coupons tend not to become loyal customers of any particular brand.
The claim is hurt. Customers who seek cents-off coupons are less likely to be loyal customers irrespective of the brand for which the coupons were offered. Correct.

C. Many grocery stores attract customers by doubling the face value of manufacturer's coupons.
It may attract more consumers to buy the discounted products, but it doesn't guarantee their loyalty to the products' brand.

D. Typically less than one-third of the coupons issued by a manufacturer are redeemed by consumers.
So, approximately 1/3rd of the coupons may be redeemed, but what about the loyalty. Out of scope.

E. A marketing campaign that uses cents-off coupons is most effective when combined with a television advertising campaign.
Author didn't take Television advertising campaign as a premise for her claim. This statement brings an extra element that is not within the realm of the consideration.
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Ans: "B"
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Manufacturers issue cents-off coupons to get consumers to try their 04 Sep 2011, 10:18
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Fluke,
Thanks for the explanation..

I missed the part which says attracting a large segment of potential consumers as loyal customers. I should start reading the question properly.. :cry:
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Manufacturers issue cents-off coupons to get consumers to try their 31 Jul 2014, 03:58
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Often, for harder questions and tricky one answer would be choice which attacks on line of reasoning !!!

Manufacturers issue cents-off coupons to get consumers to try their brand of product with the hope that the
consumers who try their brand will switch their brand loyalty.--(Reasoning , B attacks by he consumers whose purchases are strongly influenced by cents-off coupons tend not to become loyal
customers of any particular brand.)
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Manufacturers issue cents-off coupons to get consumers to try their 30 Nov 2014, 19:15
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B break the argument conclusion by predicting that customer are not loyal to any brand if they try these coupons.

Answer: B




varunmaheshwari
Manufacturers issue cents-off coupons to get consumers to try their brand of product with the hope that the
consumers who try their brand will switch their brand loyalty. So in the initial marketing of their new brand X,
Hartman Industries should issue cents-off coupons, thereby attracting a large segment of potential consumers
as loyal customers.
Which of the following, if true, casts the most serious doubt on the likelihood
that the marketing strategy recommended above will have the result that is claimed?

A. Many consumers are unlikely to try new brands of products unless offered an inducement to do so.
B. The consumers whose purchases are strongly influenced by cents-off coupons tend not to become loyal
customers of any particular brand.
C. Many grocery stores attract customers by doubling the face value of manufacturer's coupons.
D. Typically less than one-third of the coupons issued by a manufacturer are redeemed by consumers.
E. A marketing campaign that uses cents-off coupons is most effective when combined with a television
advertising campaign.
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Manufacturers issue cents-off coupons to get consumers to try their 14 Mar 2021, 22:51
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The reasoning is quite straight-forward. Because coupons attract customers and make them try your brand item, turning them loyal towards your brand, so Hartman should also do the same.

But is it so simple in the real world ?
Is there a guarantee attached here that if this normally happens, this will also happen for the Hartman's product ?
What if there is some condition, which we are not aware of and which needs to be fulfilled for the observation made above to be true.

Looking at options :

A) This option sort of pushes forward what is given as a basis in the passage. It hints that some incentive is necessary for the customers. So , it mildly supports the idea that if Hartman gives coupons, customers' attention can be drawn. Incorrect choice as it is not a weaken statement.

B) This option tells us that if you give coupons to customers, those who use them and try your product, are actually non-loyal customers. So this means it is not a guarantee that these customers will stay loyal to Hartman. This goes against the conclusion and is a possible correct choice.

C) This option tells us that if you offer coupons of say 10 percent discount, the grocery stores will increase their value such that the discount actually offered will be 20 %. Given the basis on which the conclusion was drawn, it seems more likely that customers will be attracted with more power and force than before. This option seems to support the conclusion because it says that grocery stores will actually help in promoting the product further. Hence, incorrect choice.

D) Typically only one third coupons are redeemed. But does that mean no coupons are redeemed ?
Atleast some customers are going to become loyal ones, aren't they ?
This option gives only a statistic proving that the coupons will be used, though only upto 30%.
Doesn't weaken the argument and hence incorrect.

E) This option tells that to get most effective results, tv ads should also be added to coupon campaign. But does that mean the coupon method is not at all effective. May be it is not the most effective, but it is effective to some extent, say 30 to 40 %. Even then, customers have turned loyal. This option does not seem to weaken the conclusion. Incorrect choice.

Correct choice should be B.
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Manufacturers issue cents-off coupons to get consumers to try their 11 May 2025, 09:59
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