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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
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I will go with C
The magazine lost its circulation, which further costs it as a decrease in revenue from advertisement. Reason is given that competitor magazine is low cost.
To regain the market the magazine company management decided to distribute the magazine for free, assuming that advertisement offered to it would compensate the costs. Now we have to find the case in which the plan would not reach the goal.
Lets prethink- It may possible that the retailers of the magazine would not be interested in further selling the magazine and it will Puncher the marketing network of the company leading to the failure of the plan.

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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
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Please explain why option B is wrong.
It very clearly tells us that it is not the price which lead to the decline in circulation but the content. So no matter how much price you decrease, People will still buy competitor's magazine for it has better content.

So the drawback is that it is targeting wrong area.
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
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The plan to combat the situation rests on price reduction of the magazine. Our job is to find out why the present plan will not work. Now "B" identifies an altogether different reason but does not highlight why the present plan will backfire. Hence "B" cannot be a possible answer.
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
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sd.1223 wrote:
Please explain why option B is wrong.
It very clearly tells us that it is not the price which lead to the decline in circulation but the content. So no matter how much price you decrease, People will still buy competitor's magazine for it has better content.

So the drawback is that it is targeting wrong area.

Hi sd.1223,

For reference, here's B again:
(B) One reason NowNews's circulation fell was that its competitor's reporting on cultural events was superior.
I understand your question. You're saying that B is pointing to a drawback in the plan to drop prices because B explains that inferior content led to the drop in circulation. Here's the scoop though: B merely points to a drawback of the current situation, but we can't logically state if/when NowNews became free that inferior content couldn't be offset. Remember the question states: Which of the following most logically completes the argument below? We just don't know that inferior content is a drawback in the free pricing model were enacted.

Compare that to option C:
(C) The newsstands and stores that currently sell NowNews will no longer carry it if it is being given away for free.

Wow, that's a HUGE drawback. This option basically tells us that if NowNews became free, it would lose distribution at the newsstands and stores where it's currently sold. Even if it's free, if its distribution network were gutted, how would that impact the plan to boost circulation? Calling C a drawback is almost rendered an understatement. Therefore, C is definitely the option that MOST logically completes the argument.
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
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Hi GMATNinjaTwo GMATNinja

Can you please help to eliminate option B?

My understanding:

NowNews is still the most popular magazine covering cultural events in Kalopolis
But it has recently suffered a significant drop in advertising revenue because of falling circulation.
Reason for above:
Many readers have begun buying a competing magazine that is 0.5 cents cheaper than NoNews.
So what do NoNews publishers plan to do to increase advertising revenue which is related to higher circulation:
They plan to make it available at no charge.

Now, this proposal has a serious drawback, (why?) The ans to why is OA, ie why will the plan fail?

B says one of reasons for people to buy competitor reporting is that later has better content, so even if NoNows publishers make magazine free, even then people will not but it.
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
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I believe most of the explanations above with answer "C" are making an assumption that if the MRP is set to 0 for the end consumers then the newspaper stands/stores will not be paid by the company/supply chain. It is not explicitly mentioned anywhere about the source of income for such stores and whether it is completely margin dependant. It could be for this plan company are paying stores to keep it. In such scenario, the newspaper stands will keep it and the demand would also increase drastically. Hence i do not believe that stocking the product should be directly correlated to MRP.

However since we also don't know about why end consumers are shifting, quality content is as good as a reason pricing is. And hence if content is the issue, decreasing the price would not work at all.

Unable to understand. Please guide. TIA.
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
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sd.1223 wrote:
Please explain why option B is wrong.
It very clearly tells us that it is not the price which lead to the decline in circulation but the content. So no matter how much price you decrease, People will still buy competitor's magazine for it has better content.

So the drawback is that it is targeting wrong area.


I was also torn between B and C, but in the end went with C, as the argument only wants to increase its circulation through which advertisement revenue would increase. C states that no one would keep the magazine if it is provided for free, which impacts the circulation, so it seemed a better fit than B.
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
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notwithstanding wrote:
Which of the following most logically completes the argument below?

NowNews, although still the most popular magazine covering cultural events in Kalopolis, has recently suffered a significant drop in advertising revenue because of falling circulation. Many readers have begun buying a competing magazine that, at 50 cents per copy, costs less than NowNews at $1.50 per copy. In order to boost circulation and thus increase advertising revenue, NowNews's publisher has proposed making it available at no charge, but this proposal has a serious drawback, since _______.

(B) One reason NowNews's circulation fell was that its competitor's reporting on cultural events was superior.



If I changed one word in option B, it'd become correct. The following version is correct:

The reason NowNews's circulation fell was that its competitor's reporting on cultural events was superior.

The reason the above version is correct is that it now says competitor's superior reporting is THE reason (which means the only reason) why NowNews's circulation fell. By saying so, this changed option rules out the price of the magazine as a reason for falling circulation. In such a case, it seems that we can't boost circulation by lowering the price.

However, the original option B has no impact because it says "ONE" reason for the fall in circulation. Even if there are other reasons for the fall, if we fix one reason (price), the circulation should go up. Thus, the argument makes sense in the face of option B.
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
Option C: the newsstands and stores that currently sell NowNews will no longer carry it if it is being given away for free.

Why are we assuming that there are no other stores where NowNews magazine can be sold?
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
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VP1030 wrote:
Option C: the newsstands and stores that currently sell NowNews will no longer carry it if it is being given away for free.

Why are we assuming that there are no other stores where NowNews magazine can be sold?

Hi VP1030.

The wording of "THE newsstands and stores that currently sell NowNews" communicates that the newsstands and stores mentioned are ALL the newsstands and stores that currently sell NowNews.

What fills the blank has to describe "a serious drawback" of the proposal.

The fact that all the newsstands and stores that currently sell NowNews will no longer carry it if the proposal is implemented is a serious drawback to the proposal, even there are some ther stores that would carry NowNews. After all, even if there are some stores that would carry it, the loss of relationships with all the retailer that sell NowNews currently would almost certainly be detrimental to the circulation of NowNews.
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
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While I do understand how "B" is not a serious drawback as we do not know if the inferior content was enough of a problem that even a free-pricing model could not solve, I still don't see how option C is any better than B.

Option C states - "The newsstands and stores that currently sell NowNews will no longer carry it if it is being given away for free."
There could be a scenario that the company does not rely on newsstands and stores and instead has a different circulation model (like subscription that gets delivered to home or online subscription), and hence it may not cause much of an issue in the publisher's plan. The option also does not mention the number of such newsstands - there could very well be only a few of them which stocked NowNews to begin with.

Because of the above loopholes that the option failed to address, I had marked B as it seemed to be better of the two. Please help!
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
GMATNinja wrote:
adkikani wrote:
Hi GMATNinjaTwo GMATNinja

Can you please help to eliminate option B?

My understanding:

NowNews is still the most popular magazine covering cultural events in Kalopolis
But it has recently suffered a significant drop in advertising revenue because of falling circulation.
Reason for above:
Many readers have begun buying a competing magazine that is 0.5 cents cheaper than NoNews.
So what do NoNews publishers plan to do to increase advertising revenue which is related to higher circulation:
They plan to make it available at no charge.

In this question it is given "This proposal has a serious drawback, since...."

Now, this proposal has a serious drawback, (why?) The ans to why is OA, ie why will the plan fail?

B says one of reasons for people to buy competitor reporting is that later has better content, so even if NoNows publishers make magazine free, even then people will not but it.

Quote:
Which of the following most logically completes the argument below?

NowNews, although still the most popular magazine covering cultural events in Kalopolis, has recently suffered a significant drop in advertising revenue because of falling circulation. Many readers have begun buying a competing magazine that, at 50 cents per copy, costs less than NowNews at $1.50 per copy. In order to boost circulation and thus increase advertising revenue, NowNews's publisher has proposed making it available at no charge, but this proposal has a serious drawback, since _______.

(A) Those Kalopolis residents with the greatest interest in cultural events are regular readers of both magazines.
(B) One reason NowNews's circulation fell was that its competitor's reporting on cultural events was superior.
(C) The newsstands and stores that currently sell NowNews will no longer carry it if it is being given away for free.
(D) At present, 10 percent of the total number of copies of each issue of NowNews are distributed free to students on college campuses in the Kalopolis area.
(E) NowNews's competitor would begin to lose large amounts of money if it were forced to lower its cover price.

(B) is tempting. If the other magazine features superior reporting, maybe people will still buy the competing magazine even if NowNews is free?

Notice that choice (B) says "One reason NowNews's circulation fell..." If, instead, choice (B) said, "The ONLY reason NowNews's circulation fell...", then (B) would definitely pose a serious drawback.

But we are also told that there is a price difference. Perhaps reporting quality is a factor, but maybe customers care more about the price than the reporting quality. Choice (B) certainly works against the plan, but it doesn't necessarily represent a serious drawback or imply that the plan will fail.

Choice (C), on the other hand, definitely represents a serious drawback, so (C) is a better answer.

I hope that helps!


In this question it is given "However, this proposal has a serious drawback, since........" and we are finding "why plan will fail". But in one of the other OG question on "SPEED HUMP" it was given "Identify a potential serious drawback to the plan for installing humps in Ardane" and answer is given on the lines that "which will result in potential drawback"

I am having problem in getting the logic whether we have to find "drawback in implementation" or "drawback of implementation" of the plan.

I will be really thankful for the clarification.
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
notwithstanding wrote:
Which of the following most logically completes the argument below?

NowNews, although still the most popular magazine covering cultural events in Kalopolis, has recently suffered a significant drop in advertising revenue because of falling circulation. Many readers have begun buying a competing magazine that, at 50 cents per copy, costs less than NowNews at $1.50 per copy. In order to boost circulation and thus increase advertising revenue, NowNews's publisher has proposed making it available at no charge, but this proposal has a serious drawback, since _______.

(A) Those Kalopolis residents with the greatest interest in cultural events are regular readers of both magazines.

(B) One reason NowNews's circulation fell was that its competitor's reporting on cultural events was superior.

(C) The newsstands and stores that currently sell NowNews will no longer carry it if it is being given away for free.

(D) At present, 10 percent of the total number of copies of each issue of NowNews are distributed free to students on college campuses in the Kalopolis area.

(E) NowNews's competitor would begin to lose large amounts of money if it were forced to lower its cover price.

NowNews Magazine

Step 1: Identify the Question

This is a fill in the blank question. The word since before the blank indicates that this is a Strengthen the Argument question.

Step 2: Deconstruct the Argument

Drop in circ à Ad rev down

Comp $0.50 vs NN $1.50

Plan: NN=Free

Circ up à Ad rev up

Ó Plan is flawed

Step 3: Pause and State the Goal

On Strengthen questions, the goal is to find a piece of information that would make the conclusion at least a little more likely to be valid.

In this case, note that you are not looking to strengthen the publisher’s plan. Rather, the author of the argument believes that the publisher’s plan is flawed. Your task is to find a reason that supports this claim.

Step 4: Work from Wrong to Right

(A) The fact that some people read both magazines does not provide additional information; the argument already states that total readership for NowNews has dropped.

(B) Even if there are reasons besides price that readership of NowNews fell (such as poorer reporting quality), the publisher’s plan of cutting price to increase circulation could still be effective.

(C) CORRECT. This information seriously calls into question whether the publisher’s plan could work. The plan assumes that giving the magazine away for free will increase circulation. If current distribution channels are no longer available, it will be much more difficult to increase circulation—so this choice strengthens the author’s claim that the plan is flawed.

(D) The fact that some copies of NowNews are currently given away for free does not help to determine whether giving away all copies for free will increase circulation.

(E) The conclusion of the argument is only about advertising revenue for NowNews, so the effects of a similar plan on a competitor are not relevant.


Hi BrentGMATPrepNow, not sure how is this question categorised as inference/conclusion type of question. Could you help? Thanks
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Re: NowNews, although still the most popular magazine covering cultural [#permalink]
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