Logical reasoning PrepTest 135 · Section 2 · Question 3

Incorrect. This answer may establish that the banks don't differ and thus they would need to create promotions to attract new customers, but it doesn't discuss whether doing so instead of focusing on existing customers is an ideal business practice.

Correct. Argument or Facts:
Argument

Valid or Flawed:
Flawed

Question Type:
Strengthen

Stimulus Summary:
Existing customers make up the majority of bank business, and they can't take advantage of new customer promos, so these promos are bad business.

Answer Anticipation:
This stimulus compares the impact of a given program on two groups—existing customers, and new customers. It establishes that the program is great for the latter, but useless for the former who make up a majority of the bank's business. From this, it concludes that the new customer promotions aren't good business.

However, the argument never establishes that creating promotions for new customers instead of old ones isn't good for business. Sure, the existing customers make up the majority of the bank's business, but they may be unlikely to change banks because they can't take advantage of the promotion. Without establishing that banks should be focused on creating programs for their existing customers instead of new ones, this argument is flawed. Therefore, any answer that creates a prioritization for the existing customers will strengthen this argument.

Answer Explanation:
This answer prioritizes the existing customers of banks over new customers. This strengthens the argument that it's not ideal business to do the opposite, so this is the correct answer.

Key Takeaway:
Similar to question #1, this question brings up two considerations and sides with one of them. While it does present a reason to do so—the existing customers make up a majority of bank business—it never establishes the criteria by which the conclusion can be drawn, and so the correct answer establishes that criteria.

Incorrect. No one is suggesting this. Also, this answer suggests that existing customers can't be offered a certain promotion, which cuts against the conclusion.

Incorrect. This answer suggests that banks don't need special programs to retain existing customers, and so it might be better business to focus programs on attracting new customers. If anything, this answer weakens the argument.

Incorrect. While this answer is too weak to affect the argument ("Some"; "very successful" doesn't mean they have ideal business practices), if it were stronger, it would cut against the argument by suggesting a focus on new customers might be an ideal move.