GMAT Exam Dumps : Graduate Management Admission Test (2022)

Sales promotions can involve selling a product at a relatively low price or selling the product with a free (or seemingly free) unit of the product, as in "buy one, get one free" campaigns. Research shows that immediately following month-long sales promotions, a postpromotion dip may occur, i.e., sales for the following calendar month may be less than sales for the calendar month preceding the sales promotion.

To increase sales, Storex, a department store, held month-long sales campaigns to promote four of its products. A sales promotion was considered successful if unit sales of the product were at least 10% higher in each of the 2 calendar months immediately following the promotion than In the month preceding it.

Experts have offered explanations for postpromotion dip:

• Explanation I: Many consumers stockpile the product at relatively low cost during the sales promotion.

• Explanation II: "Buy one, get one free" promotions cause some consumers to undervalue the product, making them less likely to buy it following the sales promotion.

• Explanation HI: Many consumers who missed a "buy one, get one free" opportunity may, as a result, develop so-called inaction inertia, i.e., become less likely to buy the product at either the regular or even at a discount price than if the sales promotion had not occurred.

Which one of the following is most strongly supported by the sales data, given the other Information provided?

Despite the fact that the seeds of certain tropical trees fall mostly around the parent tree, the seeds that land farther from the parent trees of these species have the greatest chance of germinating. One hypothesis is that the effect is caused by rodents eating a larger number of seeds beside the parent tree than seeds in places farther away, but studies have shown that this is not so.

Which of the following, If true, would most help explain the effect described above?

For the first time, prospectors have laid claim to rich deposits of gold, silver, and copper in the deep sea, foreshadowing a possible rush to the open oceans for metals and a possible fight with conservationists over exploitation of the sea's dark recesses.