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Difficulty:
75%
(hard)
Question Stats:
55% (02:05) correct
45%
(02:27)
wrong
based on 221
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Of all the magazines sold in supermarket checkout aisles, only a handful sell with any regularity. Numerous studies have suggested that at least for some products, sales can be boosted if customers perceive that a retailer holds a large stock of that product. Apparently a large stock signals popularity and thus makes a product seem more desirable. Therefore, supermarkets could increase overall magazine sales if they displayed more copies of each slow-selling magazine and displayed fewer copies of each reliable seller.
Which of the following would, if true, cast the most doubt on the soundness of the proposed strategy to increase magazine sales?
A. Customer loyalty suffers if a retailer fails to stock adequate supplies of certain popular product
B. The studies in question focused only on consumers' preferences and buying habits for food items.
C. Customers who come to shop in supermarkets generally do so to buy groceries, not to buy magazines.
D. Large displays of a product can signal to a customer that a product is popular, but not when the product is displayed at an unusually low price.
E. Magazines placed at eye-level tend to sell more than those placed at higher or lower levels.
Which of the following would, if true, cast the most doubt on the soundness of the proposed strategy to increase magazine sales?
A. Customer loyalty suffers if a retailer fails to stock adequate supplies of certain popular product
B. The studies in question focused only on consumers' preferences and buying habits for food items.
C. Customers who come to shop in supermarkets generally do so to buy groceries, not to buy magazines.
D. Large displays of a product can signal to a customer that a product is popular, but not when the product is displayed at an unusually low price.
E. Magazines placed at eye-level tend to sell more than those placed at higher or lower levels.
05 Oct 2024, 07:07
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The argument suggests that supermarkets could increase overall magazine sales by:
This strategy is based on studies suggesting that larger stock can boost sales by signalling popularity and desirability. We need to find the option that casts the most doubt on this proposed strategy.
A. Customer loyalty suffers if a retailer fails to stock adequate supplies of certain popular products.
What if the retailer doesn't fail to stock adequate supplies? Customer loyalty is unaffected in that case. Even if we do assume that the retailer does fail to stock adequate supplies, this casts some doubt on the strategy, as reducing the stock of popular magazines could harm customer loyalty but it still doesn't directly tell us that the strategy will fail to boost sales. Maybe new customers will still be enticed to buy the magazine. Furthermore, it doesn't directly address the effectiveness of increasing stock of slow sellers. It maybe a tempting choice, but we can still Eliminate A.
B. The studies in question focused only on consumers' preferences and buying habits for food items.
This casts significant doubt on the strategy. If the studies were only about food items, their findings may not apply to magazine sales. Magazine purchasing behaviour could be very different from food purchasing behaviour. Let's hold on to B.
C. Customers who come to shop in supermarkets generally do so to buy groceries, not to buy magazines.
Okay so "generally" customers don't buy magazines but maybe they do it less frequently. The strategy could still work in those times. This answer choice doesn't tell us why the proposed strategy wouldn't be effective for the howsoever many times customers do end up buying magazines from the supermarkets.
Rule out C.
D. Large displays of a product can signal to a customer that a product is popular, but not when the product is displayed at an unusually low price.
Pricing is irrelevant here, eliminate D.
E. Magazines placed at eye-level tend to sell more than those placed at higher or lower levels.
The strategy doesn't say anything about levels. This doesn't directly challenge the proposed stock-adjustment strategy. Rule out E.
Correct answer: (B)
- Displaying more copies of slow-selling magazines
- Displaying fewer copies of reliable sellers
This strategy is based on studies suggesting that larger stock can boost sales by signalling popularity and desirability. We need to find the option that casts the most doubt on this proposed strategy.
A. Customer loyalty suffers if a retailer fails to stock adequate supplies of certain popular products.
What if the retailer doesn't fail to stock adequate supplies? Customer loyalty is unaffected in that case. Even if we do assume that the retailer does fail to stock adequate supplies, this casts some doubt on the strategy, as reducing the stock of popular magazines could harm customer loyalty but it still doesn't directly tell us that the strategy will fail to boost sales. Maybe new customers will still be enticed to buy the magazine. Furthermore, it doesn't directly address the effectiveness of increasing stock of slow sellers. It maybe a tempting choice, but we can still Eliminate A.
B. The studies in question focused only on consumers' preferences and buying habits for food items.
This casts significant doubt on the strategy. If the studies were only about food items, their findings may not apply to magazine sales. Magazine purchasing behaviour could be very different from food purchasing behaviour. Let's hold on to B.
C. Customers who come to shop in supermarkets generally do so to buy groceries, not to buy magazines.
Okay so "generally" customers don't buy magazines but maybe they do it less frequently. The strategy could still work in those times. This answer choice doesn't tell us why the proposed strategy wouldn't be effective for the howsoever many times customers do end up buying magazines from the supermarkets.
Rule out C.
D. Large displays of a product can signal to a customer that a product is popular, but not when the product is displayed at an unusually low price.
Pricing is irrelevant here, eliminate D.
E. Magazines placed at eye-level tend to sell more than those placed at higher or lower levels.
The strategy doesn't say anything about levels. This doesn't directly challenge the proposed stock-adjustment strategy. Rule out E.
Correct answer: (B)
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