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  3. Manufacturers sometimes discount the price of a product to retailers for a promo

Manufacturers sometimes discount the price of a product to retailers for a promo

游客2024-01-12  47
问题 Manufacturers sometimes discount the price of a product to retailers for a promotion period when the product is advertised to consumers. Such promotions often result in a dramatic increase in amount of product sold by the manufacturers to retailers. Nevertheless, the manufacturers could often make more profit by not holding the promotions.
Which of the following, if true, most strongly supports the claim above about the manufacturers’ profit?
选项 A、The amount of discount generally offered by manufacturers to retailers 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, not sufficiently long for consumers to become used to the sale price.
C、For products that are not newly introduced, the purpose of such promotions is to keep the products in the minds of consumers and to attract consumers who are currently using competing products.
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.
答案 D
解析 Which of the answer choices provides the strongest evidence for the claim that the manufacturers could indeed make more profit by not holding promotions?
To promote a product during a period when it is advertised to consumers, manufacturers sometimes sell the product to retailers at a discounted price. This often results in a large boost in manufacturers’ sales to retailers. However, we are told that manufacturers could make more profit by not offering the promotions.
The manufacturers’ total profits on the product increase during the period of reduced-price sales to retailers; note that the price reduction results in a dramatic increase in the volume of sales to retailers.
Nevertheless, it is possible that this temporary increase in sales volume would reduce future sales volume to retailers at non-discounted prices. In such a case, it would be more likely that the manufacturers’ overall profits on the product would be reduced.
A    It is reasonable for manufacturers to calculate the minimum needed to draw attention to a product if they wished to minimize the costs of the product promotion. However, this information gives little if any support for the claim that manufacturers could make more profit by not discounting prices to retailers.
B    The argument does not provide any information to suggest that the length of the promotion affects manufacturers’ profits. According to the passage, many promotions last a short time, so consumers do not come to routinely expect a lower price on a product and thereby avoid purchasing it at the higher post-promotion price. However, this new information gives little if any support for the claim that manufacturers could make more profit by not discounting prices to retailers.
C    This choice implies that the manufacturer would risk making less overall profit, not more, if these promotions were not held.
D    Correct. The retailer profits by purchasing large volumes of the product at a manufacturer’s discounted price and selling it to consumers at the higher post-promotion price. It follows that the increase in sales at the discount might in fact detract from non-discount sales. As noted above, this gives the strongest support for the claim about the manufacturers’ profits.
E    This suggests that sales promotions are essential for manufacturers to compete in relevant markets. However, it gives little if any support for the claim made about manufacturers’ profits.
The correct answer is D.
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