A product that is endorsed by a big name celebrity has a : GMAT Critical Reasoning (CR)
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# A product that is endorsed by a big name celebrity has a

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Intern
Joined: 29 Dec 2011
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A product that is endorsed by a big name celebrity has a [#permalink]

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01 Nov 2012, 21:41
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55% (hard)

Question Stats:

62% (03:03) correct 38% (02:09) wrong based on 258 sessions

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A product that is endorsed by a big name celebrity has a clear competitive edge in marketing and as a result that product can generally command a high price. **Because endorsement by big name celebrities tends to be short-lived** (usually less than a few years) and companies want to make large profits while they still can, many companies charge the maximum possible price for such a product during the time it is associated with the celebrity. ** But large profits on the celebrity-associated product will give competitors a strong incentive to quickly match their own products in terms of celebrity appeal. ** Consequently, the strategy to maximize overall profit from a celebrity-associated product is to charge less than the greatest possible price.

In the argument above, the two portions in boldface play which of the following roles?

(A) The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.

(B) The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy.

(C) The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.

(D) The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.

(E) The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect; the second is presented to explain the appeal of that strategy.
[Reveal] Spoiler: OA
If you have any questions
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Manager
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Re: A product that is endorsed by a big name celebrity has a [#permalink]

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01 Nov 2012, 22:35
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This is a repost and you can see some explanations here:

To your question about how to interpret different pieces of premises, go to this forum threat:
my-story-570-q49-v19-760-q50-v42-80323-20.html#p612286

Scroll down and dowlnoad the Word document "Explanation of common terms often encountered in the 'dreaded' BoldFace Questions.doc"

I found it very helpful. Hopefully, it helps you, too.
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Re: A product that is endorsed by a big name celebrity has a [#permalink]

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07 Nov 2012, 23:32
elegan wrote:
A product that is endorsed by a big name celebrity has a clear competitive edge in marketing and as a result that product can generally command a high price. **Because endorsement by big name celebrities tends to be short-lived** (usually less than a few years) and companies want to make large profits while they still can, many companies charge the maximum possible price for such a product during the time it is associated with the celebrity. ** But large profits on the celebrity-associated product will give competitors a strong incentive to quickly match their own products in terms of celebrity appeal. ** Consequently, the strategy to maximize overall profit from a celebrity-associated product is to charge less than the greatest possible price.

In the argument above, the two portions in boldface play which of the following roles?

(A)

The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.

(B)

The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy.

(C)

The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.

(D)

The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.

(E)

The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect; the second is presented to explain the appeal of that strategy.

Hello,
Can you give me pointers on how we can answer this one? Seems that knowing the difference between consideration and assumption would help. In case formatting does not come out right, bolded text is found within the **asterisks**
Thanks.

First bold face statement : Because endorsement by big name celebrities tends to be short-lived

Effect of endorsements by celebrities is short term on the customers. Hence companies go for maximum possible price for that product to maximize profits while the effect lasts. This explains the appeal of a certain strategy, in this case endorsements by a celebrity. So this is explanation of a certain strategy.
Second bold face statement : But large profits on the celebrity-associated product will give competitors a strong incentive to quickly match their own products in terms of celebrity appeal.

An endorsement by a celebrity for a certain product gives an incentive to the competitor to endorse their products by a celebrity. Since the competitors copy the same strategy to maximize their profits, this calls into question the strategy of the company in the first place. Hence the second statement calls into question the wisdom of adopting the strategy of using celebrity endorsements for their products.

Choice B fits the bill.

Hope this helps
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Re: A product that is endorsed by a big name celebrity has a [#permalink]

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16 Nov 2014, 07:46
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Re: A product that is endorsed by a big name celebrity has a [#permalink]

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06 Mar 2016, 19:30
elegan wrote:
A product that is endorsed by a big name celebrity has a clear competitive edge in marketing and as a result that product can generally command a high price. **Because endorsement by big name celebrities tends to be short-lived** (usually less than a few years) and companies want to make large profits while they still can, many companies charge the maximum possible price for such a product during the time it is associated with the celebrity. ** But large profits on the celebrity-associated product will give competitors a strong incentive to quickly match their own products in terms of celebrity appeal. ** Consequently, the strategy to maximize overall profit from a celebrity-associated product is to charge less than the greatest possible price.

In the argument above, the two portions in boldface play which of the following roles?

(A) The first is an assumption that forms the basis for a course of action that the argument criticizes; the second presents the course of action endorsed by the argument.

(B) The first is a consideration raised to explain the appeal of a certain strategy; the second is a consideration raised to call into question the wisdom of adopting that strategy.

(C) The first is an assumption that has been used to justify a certain strategy; the second is a consideration that is used to cast doubt on that assumption.

(D) The first is a consideration raised in support of a strategy the argument endorses; the second presents grounds in support of that consideration.

(E) The first is a consideration raised to show that adopting a certain strategy is unlikely to achieve the intended effect; the second is presented to explain the appeal of that strategy.

wow..took me just little over 3 minutes to crack it..
the statements definitely do not agree with each other..
so D and E are out right away.

between A, B and C:
A - the argument does not criticize anything..plus, the second statement - the argument doesn't endorse this action..the argument doesn't endorse any of the two.. so A is out.
C - assumption - well..assumptions are not stated..so this is dubious..more likely the first is a fact/strategy that the argument seeks to explain why it is not a good one. second part though is correct. so C is out
B - yes, this is smth that the argument seeks to explain...and the second part is a consideration that explains why the first one is not ok.
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Re: A product that is endorsed by a big name celebrity has a [#permalink]

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06 Mar 2016, 20:32
Assumption is unstated premise, so it cannot be boldfaced - A and C out. From B,D,E only B fits best

B
Re: A product that is endorsed by a big name celebrity has a   [#permalink] 06 Mar 2016, 20:32
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