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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)
    A significant number of customers these days are aware of the return or exchange policy of the stores they make purchases from.
  • b)
    Not all customers return products even when they are happy with the quality.
  • c)
    Most of the customers returning the products return them because they later realise that these products are too expensive for them.
  • d)
    Many customers come to the store to exchange the products but end up returning them instead.
  • e)
    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.
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Director of TalMart: Our company provides a 90-day without-question re...
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?
Argument Analysis
 
 
Pre-Thinking
Conclusion Clarification
N/A
Pre-Thinking Approach
To pre-think assumptions, let’s see how we can falsify this conclusion.  To do so, we will look at the logical structure, focusing on linkages 1 and 2.  We will understand the condition under which the conclusion is falsified.  The assumption then will be that that condition does not exist.  Also note that as we focus on a particular linkage, we will keep the other linkages in mind as well.
Linkage#1
  • Falsification Condition:  Yes, there is a ‘without question’ clause and returns make up 20% of the sales.  But what if that’s not the reason to make unwise selections? TalMart might deal mostly in low value items where customer involvement isn’t high and as a result people don’t spend too much time in choosing items carefully. Or what if customers aren’t even aware of this clause? If this were true, then the intermediate conclusion will be falsified.
    • Assumption 1: There are no other reasons behind ‘unwise’ selections.
    • Assumption 2: A substantial number of customers are aware of the ‘no question’ clause
Linkage#2‘Without questions’ clause means there is no incentive for customers to make wiser selections
  • Falsification Condition:  What if the products sold by TalMart were of a low quality? In that case, returns would occur even if customers selected the products more carefully. 
    • Assumption 3: The high rate of returns is NOT due to inherent problems with the products, which the customers cannot preempt while making purchasing decisions .
With this understanding in mind, let's take a look at the option statements.
Answer Choices
a
A significant number of customers these days are aware of the return or exchange policy of the stores they make purchases from.
Correct
This choice is written along the lines of Assumption 2 in our pre-thinking (per Linkage #1).
B
Not all customers return products even when they are happy with the quality.
Incorrect - No new information
We already know that returns rate is only 20%, so this option doesn’t provide new information.
C
Most of the customers returning the products return them because they later realise that these products are too expensive for them.
Incorrect - Not a must be true
This choice does act as a strengthener as it reinforces the point about making "wiser decisions"; however, it is not a must be true statement as even if price was not a consideration, the customers could make unwise decisions. 
D
Many customers come to the store to exchange the products but end up returning them instead.
Incorrect - Irrelevant
This option tells us how a lot of returns are made but not the reason behind them. We don’t know why customers are coming to the store to exchange the products in the first place.
E
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.
Incorrect - Opposite
This option is a weakener as it is written along the lines of the falsification condition mentioned under Linkage #2.
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Most Upvoted Answer
Director of TalMart: Our company provides a 90-day without-question re...
Explanation:

The argument presented by the Director of TalMart states that because of the without question return policy, customers have no incentive to make wiser selections. In order for this argument to hold, the following must be true:

A significant number of customers these days are aware of the return or exchange policy of the stores they make purchases from.

- This is the correct answer. If customers are aware of the return policy, they may be more likely to make impulse purchases or take risks with their selections, knowing that they can easily return the product if they are not satisfied. This would support the claim that the without question return policy encourages customers to make poor selections.

Not all customers return products even when they are happy with the quality.

- This does not necessarily support or negate the argument presented. If some customers do not return products even when they are happy with the quality, it does not necessarily mean that the return policy is encouraging poor selections.

Most of the customers returning the products return them because they later realise that these products are too expensive for them.

- This statement is specific to the reason why customers return products, but it does not necessarily support or negate the argument presented. Even if customers return products because they are too expensive, it does not necessarily mean that the return policy is encouraging poor selections.

Many customers come to the store to exchange the products but end up returning them instead.

- This statement is specific to the reason why customers return products, but it does not necessarily support or negate the argument presented. Even if customers come to the store to exchange products but end up returning them, it does not necessarily mean that the return policy is encouraging poor selections.

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.

- This statement is specific to the reason why customers return products, but it does not necessarily support or negate the argument presented. Even if the inherent quality of the products is a reason for frequent returns, it does not necessarily mean that the return policy is encouraging poor selections.

Therefore, the correct answer is A.
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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)A significant number of customers these days are aware of the return or exchange policy of the stores they make purchases from.b)Not all customers return products even when they are happy with the quality.c)Most of the customers returning the products return them because they later realise that these products are too expensive for them.d)Many customers come to the store to exchange the products but end up returning them instead.e)The inherent quality of the products, a factor that the customers cannot successfullygauge at the time of buying,is often a reason for the frequent rate of returns.Correct answer is option 'A'. Can you explain this answer?
Question Description
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)A significant number of customers these days are aware of the return or exchange policy of the stores they make purchases from.b)Not all customers return products even when they are happy with the quality.c)Most of the customers returning the products return them because they later realise that these products are too expensive for them.d)Many customers come to the store to exchange the products but end up returning them instead.e)The inherent quality of the products, a factor that the customers cannot successfullygauge at the time of buying,is often a reason for the frequent rate of returns.Correct answer is option 'A'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about 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)A significant number of customers these days are aware of the return or exchange policy of the stores they make purchases from.b)Not all customers return products even when they are happy with the quality.c)Most of the customers returning the products return them because they later realise that these products are too expensive for them.d)Many customers come to the store to exchange the products but end up returning them instead.e)The inherent quality of the products, a factor that the customers cannot successfullygauge at the time of buying,is often a reason for the frequent rate of returns.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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)A significant number of customers these days are aware of the return or exchange policy of the stores they make purchases from.b)Not all customers return products even when they are happy with the quality.c)Most of the customers returning the products return them because they later realise that these products are too expensive for them.d)Many customers come to the store to exchange the products but end up returning them instead.e)The inherent quality of the products, a factor that the customers cannot successfullygauge at the time of buying,is often a reason for the frequent rate of returns.Correct answer is option 'A'. Can you explain this answer?.
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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)A significant number of customers these days are aware of the return or exchange policy of the stores they make purchases from.b)Not all customers return products even when they are happy with the quality.c)Most of the customers returning the products return them because they later realise that these products are too expensive for them.d)Many customers come to the store to exchange the products but end up returning them instead.e)The inherent quality of the products, a factor that the customers cannot successfullygauge at the time of buying,is often a reason for the frequent rate of returns.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Director of TalMart: Our company provides a 90-day without-question return policy on all products sold. 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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)A significant number of customers these days are aware of the return or exchange policy of the stores they make purchases from.b)Not all customers return products even when they are happy with the quality.c)Most of the customers returning the products return them because they later realise that these products are too expensive for them.d)Many customers come to the store to exchange the products but end up returning them instead.e)The inherent quality of the products, a factor that the customers cannot successfullygauge at the time of buying,is often a reason for the frequent rate of returns.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Director of TalMart: Our company provides a 90-day without-question return policy on all products sold. 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