*CR

[supshalu]

Automobile manufacturers often offer incentive programs through which they discount the price of a car to their dealers for a promotion period when the product is advertised to consumers. Such incentive programs often result in a dramatic increase in the amount of product sold by the automobile manufacturers to dealers but may hurt the manufacturer’s profitability.
Which of the following, if true, most strongly supports an argument for the incentive programs?

A. The amount of discount generally offered by manufacturers to dealers is carefully calculated to represent the minimum needed to draw consumers' attention to the product.
B. For many consumer products, the period of advertising discounted prices to consumers is about a week, which is not sufficiently long for consumers to become used to the sale price.
C. More prestigious auto makers do not use incentive programs because they dilute the company’s brand name.
D. During such a promotion, retailers tend to accumulate in their warehouses inventory bought at discount; they then sell much of it later at their regular price.
E. If a manufacturer fails to offer such promotions but its competitor offers them, that competitor will tend to attract consumers away from the manufacturer's product.

I took D but actual answer is E.Though there is nothing wrong with E ,i preferred D over E.

[venkat_yj]

If we focus on the author's conclusion: "Incentives drive dramatic increase in products sold during promotion period but at the cost of manufacturer's profitability" (Key words- Increased Sales, Promotion Period, impacts Manfuturer's Profitability)

Choice D, seems to weaken the author's argument by talking about retailers misusing the promotion by accumulating inventory instead of selling to customers interested in the promotion.

choice E on the other hand, stays on course to address Sales during promotion period and supports why incentive programs are needed (absence could result in lost sales to competition)

[herjari]

If the car retailer buys more cars than he is supposed to sell with the promotion, then the manufacturer´s profitability will be aritificially lowered.

It is clear that answer E isn´t a clear winner...

[RonPurewal]

Please cite the source (author) of this problem. We cannot reply unless a source is cited (and, if no source is cited, we will have to delete the post!). Thanks.

[direstraits007]

source is 800score Verbal test paper
I also agree that there is no fine distinction in the questions due to which I also chose D.

Thanks.

GeeMate.

[RonPurewal]

this problem is blatant plagiarism. compare it with #69 in the purple OG verbal supplement; it is EXACTLY the same problem, with only a few words changed.

even more incriminating, they forgot to change "retailers" to "car dealers" in the correct answer choice, thus proving conclusively that they copied the OG problem. (they weren't even ambitious enough to rearrange the answer choices!)

[direstraits007]

this problem is blatant plagiarism. compare it with #69 in the purple OG verbal supplement; it is EXACTLY the same problem, with only a few words changed.

even more incriminating, they forgot to change "retailers" to "car dealers" in the correct answer choice, thus proving conclusively that they copied the OG problem. (they weren't even ambitious enough to rearrange the answer choices!)

So Ron, I don't have the Purple Verbal Book...:(
What is the right answer for this problem..D or E ?

Thanks!

GeeMate.

[RonPurewal]

I took D but actual answer is E.Though there is nothing wrong with E ,i preferred D over E.

well, (d) actually weakens the argument for the incentive programs, while (e) strengthens that argument. so there's no question that you'd want (e).

(d)
if this happens, then the programs are actually costing the manufacturers in terms of potential profit: rather than buying the cars at regular price, the dealers are stocking as many as possible at the discount price, so that they can avoid paying the regular price (even in subsequent seasons, when they're still selling off the excess inventory).
hence, WEAKEN

(e)
if this is true, then the manufacturers need to offer the programs in order to maintain their customer base.
therefore, STRENGTHEN