Question: Director of TalMart: Our company provides a 90-day without-question return policy on all products sold. Each month on an average, our outlets receive requests for returns on almost 20% of the sales made. It is clear that because of the ‘without question’ clause, our customers have no incentive to make wiser selections. If customers made better selections to begin with, then we would not see most of these products being returned.
Which of the following is required for the argument to hold?
- A significant number of customers these days are aware of the return or exchange policy of the stores they make purchases from.
- Not all customers return products even when they are happy with the quality.
- Most of the customers returning the products return them because they later realise that these products are too expensive for them
- Many customers come to the store to exchange the products but end up returning them instead.
- The inherent quality of the products, a factor that the customers cannot successfully gauge at the time of buying, is often a reason for the frequent rate of returns.
Explanation
Let's approach the answer choices.
A: Correct
This option could help explain why customers are comfortable making poor selections, knowing they can return items. If customers are well aware of the return policy, it supports the argument that the lenient policy influences their decision-making.
B: Incorrect
This statement doesn't directly relate to the argument. It suggests that some customers don't return products despite being satisfied, but it doesn't address why others might return products due to the return policy.
C: Incorrect
This statement suggests that the cost is the primary reason for returns. It doesn't directly support the argument that the lenient return policy is causing customers to make poor selections.
D: Incorrect
This option suggests that exchange attempts often lead to returns, but it doesn't necessarily relate to customers making poor initial selections due to the lenient return policy.
E: Incorrect
This statement supports the argument. If customers can't accurately assess product quality when buying and the return policy is lenient, it encourages them to buy products without worrying about their quality.
“Director of TalMart: Our company provides a 90-day without-question”– is a GMAT Critical question. To answer the question, a candidate can either find a piece of evidence that would weaken the argument or have logical flaws in the argument. GMAT critical reasoning tests the logical and analytical skills of the candidates. This topic requires candidates to find the argument's strengths and weaknesses or the logical flaw in the argument. The GMAT CR section contains 10 -13 GMAT critical reasoning questions out of 36 GMAT verbal questions.
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