A supermarket chain previously offered a "Buy One, Get One Free" (BOGO) promotion on its premium coffee brand exclusively on weekends, while charging the regular full price on weekdays. Recently, the chain eliminated the weekend BOGO promotion entirely and permanently reduced the regular price of the coffee by 50 percent every day of the week, accurately advertising that customers could now get the promotional per-unit price anytime. In the year following this pricing change, the total number of bags of this premium coffee sold by the chain increased by 20 percent compared to the prior year. Nevertheless, the chain's overall profit derived from this premium coffee dropped substantially, even though the wholesale cost per bag and all associated operational costs remained constant.
Which one of the following, if true, most helps to resolve the apparent discrepancy?
- AAlthough the total number of bags sold increased, the premium coffee constituted a significantly smaller percentage of the supermarket's total coffee sales following the pricing change.
- BThe permanent price reduction successfully attracted many new customers who had never previously purchased the premium coffee, even during the weekend BOGO promotions.
- Prior to the pricing change, a substantial proportion of the supermarket's premium coffee sales occurred on weekdays, when customers purchased the coffee at the regular full price.Cevap
- DUnder the new pricing model, the vast majority of the premium coffee is purchased by customers who buy only one bag at a time, whereas under the old model most customers bought two bags.
- EMany customers who regularly purchased the coffee during the weekend BOGO promotions believed that the promotion offered a better value than a standard 50 percent discount.