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Experia Inc , one of the pioneers in the online retailing in

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Experia Inc , one of the pioneers in the online retailing in [#permalink] New post 22 Feb 2013, 19:14
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00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

100% (03:02) correct 0% (00:00) wrong based on 91 sessions
Here are two Weaken questions, based on the same passage:

Experia Inc , one of the pioneers in the online retailing in the cosmetics business, does not have a physical presence and sells all its products through its website. While evaluating its various marketing channels to make the best use of its funds, the company has discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on the fact whether he/she came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google.

Which of the following most strongly undermines the ability of the company’s plan to increase its profits?
A. An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user
B. The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in case of Google
C. Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales
D. Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.
E. By investing time and money on writing articles in Comimetico, Experia can reduce its customer acquisition costs to half to what they are now.


Which of the following casts the most doubt on the ability of the plan to achieve its objective of increasing the sales of the company?
A. Whereas almost all online retailers advertise their products on Google, there are only a few retailers, especially in the cosmetics business, which use Cosmetico as a marketing channel
B. In the past, it has been seen that in case of customer originating from Cosmetico that such customers become regular customers of the company and make most of their latter purchases by directly visiting the company’s website.
C. The average order size of a customer depends more on the product line of the company than any characteristic of the customer
D. The average monthly costs of advertising at Google is just a small fraction of the average monthly costs of advertising at Cosmetico
E. It has been observed that the customers who come through Google are generally more satisfied with the Experia’s products than customers who come from Cosmetico and the former also praise the Experia’s products on various online forums while the latter do not.

Happy Solving :)

-Chiranjeev
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Last edited by egmat on 07 May 2013, 07:59, edited 2 times in total.
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Re: Experia Inc , one of the pioneers - Two Weaken Questions [#permalink] New post 23 Feb 2013, 03:37
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B for the first one and C for the second one.

Though, for the second is a bit ackward because the conclusion talk about profits and the stem talks about sales but there could not be correlation. So is a bit not related to weaken the argument. My feeling
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Re: Experia Inc , one of the pioneers - Two Weaken Questions [#permalink] New post 23 Feb 2013, 06:03
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yup thanks

For the record I'm a Certified Public Accountant ;)

Quote:
However, I would like to point out that unless and until explicitly stated, in strengthen and weaken answer choices, sales is generally taken to be positively correlated with the profits. So, if an option statement indicates increase in sales, it also indicates increase in costs, unless it also talks about increase in costs.


totally agree :)

For the second one B it is
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Re: Experia Inc , one of the pioneers - Two Weaken Questions [#permalink] New post 23 Feb 2013, 06:21
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egmat wrote:
Here are two Weaken questions, based on the same passage:

Experia Inc , one of the pioneers in the online retailing in the cosmetics business, does not have a physical presence and sells all its products through its website. While evaluating its various marketing channels to make the best use of its funds, the company has discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on the fact whether he/she came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google.

Which of the following most strongly undermines the ability of the company’s plan to increase its profits?
A. An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user
B. The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in case of Google
C. Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales
D. Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.
E. By investing time and money on writing articles in Comimetico, Experia can reduce its customer acquisition costs to half to what they are now.

Which of the following casts the most doubt on the ability of the plan to achieve its objective of increasing the sales of the company?
A. Whereas almost all online retailers advertise their products on Google, there are only a few retailers, especially in the cosmetics business, which use Cosmetico as a marketing channel
B. In the past, it has been seen that in case of customer originating from Cosmetico that such customers become regular customers of the company and make most of their latter purchases by directly visiting the company’s website.
C. The average order size of a customer depends more on the product line of the company than any characteristic of the customer
D. The average monthly costs of advertising at Google is just a small fraction of the average monthly costs of advertising at Cosmetico
E. It has been observed that the customers who come through Google are generally more satisfied with the Experia’s products than customers who come from Cosmetico and the former also praise the Experia’s products on various online forums while the latter do not.

Happy Solving :)

-Chiranjeev


Proposed Plan :- Shifting marketing funds from magazine to Google
Conclusion :- The plan will increase profits for the company.

Prethinking :- The implementation of the proposed plan will have some negative impact on the revenue of the company.

POE :-
question 1
Option A :- OFS - This option Talks about the income group of the magazine and Google. But the argument has already mentioned that the purchase by the customer is regardless of their channel.
Option B :- Correct - if the company may loose many potential customers then the revenues will fall.
Option C :- Opposite - This option strengthens the conclusion
Option D :- Opposite - This option in a way strengthens the conclusion
Option E :- OFS - other mechanisms(writing in comimetico) is out side the scope of passage.

question 2 :-
Option A :- Opposite - this strengthens the conclusion by stating that Google is the more preferred channel for this type of business.
Option B :- Correct - If the plan is implemented then the company may loose its long term clients
Option C :- OFS - talks about the order size does and it has already been mentioned in the passage that customer purchase is independent of the channel
Option D :- Opposite - This option strengthens the conclusion
Option E :- Opposite - This option strengthens the conclusion.

IMO :- B, B
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Re: Experia Inc , one of the pioneers - Two Weaken Questions [#permalink] New post 23 Feb 2013, 03:54
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carcass wrote:
B for the first one and C for the second one.

Though, for the second is a bit ackward because the conclusion talk about profits and the stem talks about sales but there could not be correlation. So is a bit not related to weaken the argument. My feeling


Hi Carcass,

Thanks for pointing out the discrepancy. The objective of the plan has been removed from the passage since the objective is mentioned in each of the question stems.

However, I would like to point out that unless and until explicitly stated, in strengthen and weaken answer choices, sales is generally taken to be positively correlated with the profits. So, if an option statement indicates increase in sales, it also indicates increase in profits, unless it also talks about increase in costs.

Also, would you like to review your answer choice to the 2nd question, in light of the current change?

Thanks :)

Chiranjeev
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Last edited by egmat on 23 Feb 2013, 08:25, edited 1 time in total.
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Re: Experia Inc , one of the pioneers in the online retailing in [#permalink] New post 04 Mar 2013, 01:25
egmat wrote:
Here are two Weaken questions, based on the same passage:

Experia Inc , one of the pioneers in the online retailing in the cosmetics business, does not have a physical presence and sells all its products through its website. While evaluating its various marketing channels to make the best use of its funds, the company has discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on the fact whether he/she came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google.

Which of the following most strongly undermines the ability of the company’s plan to increase its profits?
A. An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user
B. The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in case of Google
C. Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales
D. Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.
E. By investing time and money on writing articles in Comimetico, Experia can reduce its customer acquisition costs to half to what they are now.

Which of the following casts the most doubt on the ability of the plan to achieve its objective of increasing the sales of the company?
A. Whereas almost all online retailers advertise their products on Google, there are only a few retailers, especially in the cosmetics business, which use Cosmetico as a marketing channel
B. In the past, it has been seen that in case of customer originating from Cosmetico that such customers become regular customers of the company and make most of their latter purchases by directly visiting the company’s website.
C. The average order size of a customer depends more on the product line of the company than any characteristic of the customer
D. The average monthly costs of advertising at Google is just a small fraction of the average monthly costs of advertising at Cosmetico
E. It has been observed that the customers who come through Google are generally more satisfied with the Experia’s products than customers who come from Cosmetico and the former also praise the Experia’s products on various online forums while the latter do not.

Happy Solving :)

-Chiranjeev


Which of the following most strongly undermines the ability of the company’s plan to increase its profits?
A. An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user - Income of visitor OFS
B. The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in case of Google -
Lets take an example - for 10 $ spent on experia attracts 5 visitors and 10 visitors for the same sum in google.
from the conversion ratio if 2 of 10 visitors thru google become its customers then 4 (several times - twice can be the minimum)of 5 customers become their customers through cosmetico. - correct


C. Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales
- Previous year stats may not be applicable to the current year. Also this strengthens the argument
D. Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.
- The company is interested in increasing the profits and not the geography of their presence
E. By investing time and money on writing articles in Comimetico, Experia can reduce its customer acquisition costs to half to what they are now.
- New terminology - Customer acquisition cost - No information about the same in the passage
- Also Investing time is going to cost the company and no information is given relevant to that






Which of the following casts the most doubt on the ability of the plan to achieve its objective of increasing the sales of the company?
A. Whereas almost all online retailers advertise their products on Google, there are only a few retailers, especially in the cosmetics business, which use Cosmetico as a marketing channel - OFS

B. In the past, it has been seen that in case of customer originating from Cosmetico that such customers become regular customers of the company and make most of their latter purchases by directly visiting the company’s website.
- For those who have already become loyal customers, Experia need not spend money in cosmetico. Every single time, cosmetico provides experia with new customers. This over a long term is more profitable. Even though it cites a past fact, I chose this option

C. The average order size of a customer depends more on the product line of the company than any characteristic of the customer
- This also casts doubt on the company`s plans to shift more funds to google. But this is very generic. I felt B more compulsive in weakening than C.
D. The average monthly costs of advertising at Google is just a small fraction of the average monthly costs of advertising at Cosmetico
- Strengthens the argument
E. It has been observed that the customers who come through Google are generally more satisfied with the Experia’s products than customers who come from Cosmetico and the former also praise the Experia’s products on various online forums while the latter do not.
- Strengthens the argument
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Re: Experia Inc , one of the pioneers in the online retailing in [#permalink] New post 26 Mar 2013, 07:44
IMO B, B.

Although I felt both the questions were very similar. 8-)
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Re: Experia Inc , one of the pioneers in the online retailing in [#permalink] New post 27 Mar 2013, 13:41
B & B

Any idea when the OA will be posted?
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Re: Experia Inc , one of the pioneers in the online retailing in [#permalink] New post 31 Mar 2013, 09:02
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Hi,

As I can see, most of you have gotten both the questions right :)

OA are B and B.

Thanks,
Chiranjeev
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Re: Experia Inc , one of the pioneers in the online retailing in   [#permalink] 31 Mar 2013, 09:02
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