|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
16 Sep 2014, 02:01
Kudos
Bookmarks
Which of the following best completes the passage below?
A recent downturn in the national economy has led retailers to expect lower sales during the upcoming holiday season. In an attempt to prevent losses during the most important quarter of the year, the owner of Suzy’s Gift Shop has decided to offer even deeper discounts than usual during the annual holiday sale, hoping that .
A. the economy will actually improve during the holiday season
B. shoppers also suffering from the economic downturn will recognize the generous gesture and patronize the store
C. the amount of money spent advertising the sale can be recovered by an increase in purchases
D. lower prices will draw enough additional shoppers to offset the lower profit on each item.
E. shoppers will enter the holiday spirit and spend more money in the store than they have in previous months
A recent downturn in the national economy has led retailers to expect lower sales during the upcoming holiday season. In an attempt to prevent losses during the most important quarter of the year, the owner of Suzy’s Gift Shop has decided to offer even deeper discounts than usual during the annual holiday sale, hoping that .
A. the economy will actually improve during the holiday season
B. shoppers also suffering from the economic downturn will recognize the generous gesture and patronize the store
C. the amount of money spent advertising the sale can be recovered by an increase in purchases
D. lower prices will draw enough additional shoppers to offset the lower profit on each item.
E. shoppers will enter the holiday spirit and spend more money in the store than they have in previous months
16 Sep 2014, 02:01
Kudos
Bookmarks
Official Solution:
Which of the following best completes the passage below?
A recent downturn in the national economy has led retailers to expect lower sales during the upcoming holiday season. In an attempt to prevent losses during the most important quarter of the year, the owner of Suzy’s Gift Shop has decided to offer even deeper discounts than usual during the annual holiday sale, hoping that .
A. the economy will actually improve during the holiday season
B. shoppers also suffering from the economic downturn will recognize the generous gesture and patronize the store
C. the amount of money spent advertising the sale can be recovered by an increase in purchases
D. lower prices will draw enough additional shoppers to offset the lower profit on each item.
E. shoppers will enter the holiday spirit and spend more money in the store than they have in previous months
Situation:The owner of a gift shop hopes to make up for a recent economic downturn by offering deeply discounted sale prices.
Reasoning: Which option best completes the passage? Because the economy has recently been slow, retailers, such as the owner of Suzy’s Gift Shop, expect sales to be lower during the important holiday shopping season. The owner of the store hopes that more drastic discounts during the annual holiday sale will prevent losses. The correct answer choice will describe a way in which lower sale prices can actually lead to greater profit: by attracting more customers.
A. The passage does not make this suggestion.
B. Whether shoppers view lower sale prices as generous does not affect the soundness of the plan.
C. Advertising costs are not addressed in the passage.
D. CORRECT. If lower sale prices attract enough extra shoppers, the overall profit margin of the store will increase.
E. Though the owner does likely hope that shoppers will spend more money, the passage does not state that the holiday spirit is part of the plan.
Answer: D
Which of the following best completes the passage below?
A recent downturn in the national economy has led retailers to expect lower sales during the upcoming holiday season. In an attempt to prevent losses during the most important quarter of the year, the owner of Suzy’s Gift Shop has decided to offer even deeper discounts than usual during the annual holiday sale, hoping that .
A. the economy will actually improve during the holiday season
B. shoppers also suffering from the economic downturn will recognize the generous gesture and patronize the store
C. the amount of money spent advertising the sale can be recovered by an increase in purchases
D. lower prices will draw enough additional shoppers to offset the lower profit on each item.
E. shoppers will enter the holiday spirit and spend more money in the store than they have in previous months
Situation:The owner of a gift shop hopes to make up for a recent economic downturn by offering deeply discounted sale prices.
Reasoning: Which option best completes the passage? Because the economy has recently been slow, retailers, such as the owner of Suzy’s Gift Shop, expect sales to be lower during the important holiday shopping season. The owner of the store hopes that more drastic discounts during the annual holiday sale will prevent losses. The correct answer choice will describe a way in which lower sale prices can actually lead to greater profit: by attracting more customers.
A. The passage does not make this suggestion.
B. Whether shoppers view lower sale prices as generous does not affect the soundness of the plan.
C. Advertising costs are not addressed in the passage.
D. CORRECT. If lower sale prices attract enough extra shoppers, the overall profit margin of the store will increase.
E. Though the owner does likely hope that shoppers will spend more money, the passage does not state that the holiday spirit is part of the plan.
Answer: D
02 Apr 2016, 09:29
Kudos
Bookmarks
I think this is a poor-quality question and I don't agree with the explanation. The correct answer seems to indicate that the lower prices will effect the economy as a whole. That is not the intention of the company's strategy; the intention of the company's strategy is to effect its business position.
