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To compete with a number of newer restaurants, Rick’s Café has begun offering a free appetizer to every customer who orders more than $40 worth of food. The manager of Rick’s Café claims that the offer has been a huge success in increasing sales, since the number of customers whose orders exceed $40 has increased by twenty-seven percent since the offer began.
Which of the following, if true, most seriously weakens the claim of the manager?
A. Most people who began eating at Rick’s Café after the offer began spending more than $40 each time they eat there.
B. Most people who typically spend less than $25 on a restaurant meal would not be persuaded to spend more by any offer.
C. Nearly all who have begun spending $40 or more at Rick’s Café since the offer began are regular patrons who have increased the average amount spent during one meal at Rick’s Café, but have begun visiting less frequently.
D. Since the offer began, most of the people who spend $40 or more at Rick’s Café are people who have never eaten there before and who always spend more than $40 when eating at restaurants.
E. Most people who received a free appetizer through the offer will continue to eat at Rick’s Café after the offer ends.
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Rick’s cafe has been in business, and recently more newer restaurants have mushroomed in the vicinity. So, as a business strategy in order to compete with the newer restaurants, they came up with a plan of selling free appetiser if the ordered food has exceeded more than $40.
Post implementation of this marketing strategy, the manger of Rick’s cafe claims that the offer has been a huge success in increasing sales. The manager present data to support the claim that increase in customers who ordered more than $40 has been more than 27%.
So, the strategy has worked. But, we need to find an option which weakens the managers claim. Which means, we need to spot an option which mentions, the sales has remained same or has dropped. In either case, the managers claim is weakened.
A. Most people who began eating at Rick’s Café after the offer began spending more than $40 each time they eat there.
Most people refers to a population more than 50%, and who began eating denotes the newer customers who visit the cafe because of the offer. The option further explains that these customers frequent the cafe and spend more than $40 each time they visit. This is actually a strengthener, as it provides dots that link to increased sales. Hence, Wrong.
B. Most people who typically spend less than $25 on a restaurant meal would not be persuaded to spend more by any offer.
This option is irrelevant and out of scope, as it speaks of the spending capacity and threshold of a certain section of customer base. Even though, this threshold is not static and liable to change if the menu or offer price changes. Moreover, it doesn’t address the increase in sales of 27%. Hence, Wrong.
C. Nearly all who have begun spending $40 or more at Rick’s Café since the offer began are regular patrons who have increased the average amount spent during one meal at Rick’s Café, but have begun visiting less frequently.Nearly all - means almost everyone who begun spending more than $40 since the offer began are regular customers. Secondly, the average amount they have spent for one meal has increased - this means the amount they spent earlier per meal is less than $40. Another aspect is the average meal , which means they have reduced the meal frequency, and therefore spent the $40 to avail the offer. The final phrase, they begun visiting less frequently clearly shows the sales increase doesn’t mean the customer has increased. Hence, correct answer.
D. Since the offer began, most of the people who spend $40 or more at Rick’s Café are people who have never eaten there before and who always spend more than $40 when eating at restaurants.
This option is a strengthener. As it mentions new customers with the capacity to spend more than $40 , will certainly push the sales figure up. Thus, justified the claim made by manager. Hence, Wrong.
E. Most people who received a free appetizer through the offer will continue to eat at Rick’s Café after the offer ends.
This is what every owner of a restaurant aspires for. This option speaks about the futuristic aspect of a business, but actually we are dealing with sales increase per and post offer. Hence, irrelevant and out of scope - Wrong option.
Option C