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Re: Considering the current economy, the introduction of a new [#permalink]
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Question 5
Answer should be E


Premise 1 :- Total sales of cereals is unlikely to increase considering the current market situation.

Premise 2 :- Intruduction of a new brand of cereal will not fetch new customers in the total cereal market while few existing customers would switch to the new brand

Conclusion :- For Coolidge corporation, plan of Introducing new cereal brand will not boost its total sale as only few of its existing customers would switch to a new brand, resulting in decline in sales of company's other brands.

lets assume that Total Number of cereal customers is 100 and in which 25 customers are of Coolidge corporation's and remaining 75 are of its competitor's.
Author assumes or indirectly states that new cereal brand will fetch customers from the group of 25 customers.
If we establish that the new cereal brand will fetch customers also from the group of 75 customers thereby increasing companies overall customer base, then we can weaken the conclusion.

A) Incorrect - As per premise 1, Given the current market situation, total sales of cereals will not increase at all even if population increases

B) Incorrect - This choice does not comment on whether new customers would come from group 75

C) Incorrect - Nope

D) Incorrect - Here too we are not getting desired information

E) Correct :- This choice states that coolidge corporation will earn some new customers from its competitors. Hence the sales and customer base of coolidge corporation will increase


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Re: Considering the current economy, the introduction of a new [#permalink]
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Hi nightblade354

Kindly add Timer to the question.

Thanks!
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Considering the current economy, the introduction of a new [#permalink]
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gmat1393 wrote:
Hi nightblade354

Kindly add Timer to the question.

Thanks!


Timer added. Good spot.

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Re: Considering the current economy, the introduction of a new [#permalink]
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Re: Considering the current economy, the introduction of a new [#permalink]
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