The correct answer if option (A).Passage Understanding:1. The company has at least 2 types of delivery services - Regular and Next Day Delivery (NDD - this is premium).
2. Regular delivery takes 2 days. NDD takes 1 day.
3. The company has introduced a new distribution system. This can ensure that almost every package is delivered on the next day.
4. The company's worry is that this system will result in lower sales of NDD, because even in regular delivery, without paying a premium, the customer is getting their item delivered in 1 day, instead of 2.
5. Keeping this in mind, the company has made a plan -
Objective: to encourage sales of NDD
Plan: Intentionally delay delivery by 1 day for regular delivery (with the new distribution system), to ensure delivery happens on the 2nd day, and not the 1st day (which will make it same as NDD for cheaper).
We need to find the assumption.
Thought Process:
An assumption is that implicit thought which is not stated, but has to be true for the conclusion to hold true. So, if an assumption is not true (negated), then the conclusion should break. A failsafe way to identify the assumptions is to identify the conditions under which the conclusion would definitely break.
So, let us falsify or break the conclusion:
In what scenario would the company's plan (to delay regular delivery by a day) NOT help improve the sales of NDD?
We need to think about how an intentional delay can impact sales of NDD.
What if this intentional delay somehow impacted the company's brand image negatively? For example, what if the media or customers found out about the company intentionally delaying deliveries, and created negative publicity, to such a level that customers moved to other companies for deliveries?
This would impact both the delivery services (regular and NDD). But the plan would have failed. NDD Sales would suffer.
So one assumption being made is:
The information about intentional delay didn't reach the customers and drive them away from the company in any way.
Let us go through the answer choices:
(A) deliberate delay of packages will not affect the company's image in a way that significantly reduces its ability to attract and retain customersThis is exactly what we arrived at. This must be the correct answer.
(B) most people do not have a preference for either two-day or next-day delivery
This plan aims to build a preference for one day delivery, so that more customers will pay a premium for it. This option only states that most of the current customers don't really prefer NDD over regular, as they have no preference of one over the other. This is precisely what the plan hopes to solve - bring more customers onboard NDD (i.e. pay premium for NDD). So, this option has no impact on the conclusion. In some ways, it is the basis for the plan.
(C) if the plan is not implemented, the company would lose more money in lost sales of overnight deliveries than it would save with its new efficient distribution systemInteresting choice! But not correct. It is simply telling us why the plan should be implemented, but the conclusion is whether the plan when implemented would succeed or fail. And an assumption in such a case would be that statement which has to be true for the plan to succeed. Why the plan should be implemented is irrelevant here.
(D) the overnight service is too expensive to be attractive to most customers currentlyIrrelevant. It is not clear how overnight service and its pricing is anyway related to the plan of intentional delay.
(E) competing companies' delivery services rarely deliver packages to their destination earlier than their promised timeIrrelevant. Competitor's delivery time has nothing to do with whether the company's plan to delay deliveries will push more customers towards NDD.
Cheers!