Question of The Day05-06-2023

A retail store is targeting higher sales by attracting more customers to the store. They Have upped their marketing budget on activities and promotions.

From this statement, find among the following, which is implicit in the assumptions?

Answer

Correct Answer : b ) Activities and promotions will increase footfall in the store and more customers means more shopping and more business

Explanation :

Considering the given statement - "A retail store is targeting higher sales by attracting more customers to the store. They Have upped their marketing budget on activities and promotions." to be true. By increasing the marketing budget on activities and promotions, we can say that the retail store has achieved the target of higher sales by increasing footfall.

A higher footfall will result in higher conversion into sales.

In option (a) it is said about motivation and efficiency, whereas it cannot be inferred from the sentence as the employees could have been motivated and efficient earlier.

Option (b) is drawing the correct inference as marketing would have resulted in higher footfall and a higher number of customers in the store means higher sales.

Option (c) is drawing the wrong inference as it cannot be said that marketing will impact the negotiating power with vendors.

Option (d) is drawing the wrong inference as the increase in marketing expenditure will not improve product agreement for sure and the reduced loss due to product obsolescence is also not guaranteed.

Hence, Option (b) is correct.

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