Director of TalMart: Our company provides a 90-day without-question return policy on all products sold. Each month on an average, our outlets receive requests for returns on almost 20% of the sales made. It is clear that because of the ‘without question’ clause, our customers have no incentive to make wiser selections. If customers made better selections to begin with, then we would not see most of these products being returned.
Which of the following is required for the argument to hold?The director argues that the no-questions return policy causes many returns because it removes customers’ incentive to choose carefully in the first place.
The key assumption is that
customers know about that policy. If they do not know it exists, then it cannot affect their incentives or their buying choices.
A. A significant number of customers these days are aware of the return or exchange policy of the stores they make purchases from.
This is required. The argument says the “without question” clause causes customers to choose less wisely. That works only if a significant number of customers know about the policy when they buy.
B. Not all customers return products even when they are happy with the quality.
This is not required. The argument does not depend on what happy customers do.
C. Most of the customers returning the products return them because they later realise that these products are too expensive for them
This is not required. The argument is about careless initial selection in general, not specifically about price.
D. Many customers come to the store to exchange the products but end up returning them instead.
This is irrelevant. The argument is about why products are brought back, not whether customers first intended to exchange them.
E. The inherent quality of the products, a factor that the customers cannot successfully gauge at the time of buying, is often a reason for the frequent rate of returns.
This is not required. In fact, it weakens the argument, because it gives another reason for returns that has nothing to do with careless selection.
Answer: (A)