Multiple choice

B Mart has been losing business to Smart Stores ever since the latter came up in the neighborhood about a year back. Last month the Director of B Mart decided to slash the prices of all the grocery items well below the prices charged by Smart Stores for the same quality and brand. Over the month, the overall sales at B Mart went down further, instead of going up.

Which of the following helps resolve the apparently paradoxical situation?

  1. Groceries provide a small fraction of the overall business of Smart Stores.

  2. Groceries provide a significant fraction of the overall business of B Mart.

  3. People like to buy their groceries along with their other requirements.

  4. B Mart has not advertised the price reductions over local cable TV network.

  5. Smart Stores has announced a reduction in prices of some other items of purchase.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The price reduction is for grocery items only. But people will buy their grocery from the same place from where they buy their other requirements. Why should they then come to B Mart for grocery items only?

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