medium · GMAT Verbal
Retailer Caspian tested dynamic pricing in 14 of its 70 stores for 5 weeks. Revenue per visitor rose 6%, but customer complaints also rose 4%, and the test excluded holiday periods. The result suggests that rapid price adjustment can capture some otherwise lost margin. Yet the narrow sample and short window make a company-wide rollout premature; a longer test across additional store formats would show whether the gain persists without unacceptable damage to customer trust.
Which new situation most closely follows the principle supported by the passage?
- A restaurant keeps prices permanently fixed because customer trust can never be measured.
- A chain compares total revenue with a competitor’s profit margin and declares its pilot successful.
- A restaurant chain pilots variable menu prices across several formats and seasons before deciding whether to deploy them nationally.
- A retailer launches variable pricing in every market because one urban store raised revenue during a single week of pilot testing.
- A retailer abandons every pricing experiment after receiving any customer complaint.
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