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Health club membership has increased dramatically over the

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Director
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Health club membership has increased dramatically over the [#permalink] New post 27 Jan 2005, 13:29
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Health club membership has increased dramatically over the last five years. In order to take advantage of this increase, Fitness Express plans to open more of the same types of classes available during the week, while continuing its already very extensive advertising in newspapers and on the radio.

Which of the following, if true, provides most support for the view that Fitness Express cannot increase membership to its gyms by adopting the plan outlined above?

A. Although it fills all of the classes it opens, Fitness Express’s share of all health club memberships has declined over the last five years.
B. Fitness Express’ number of classes offered to their clients has declined slightly over the last year.
C. Advertising has made the name of Fitness Express widely known, but few customers know that Fitness Express health clubs also off acupuncture and shiatsu treatments.
D. Fitness Express’s health clubs is one of three clubs that have together accounted for 88% of health club memberships.
E. Despite a slight decline in membership price, sales of Fitness Express memberships have fallen in the last five years.
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 [#permalink] New post 27 Jan 2005, 14:23
I will go with (E) this is the only one which indiacates that whatever approach they had in past the membership has declined and hence, the same approach will be of no use in future.
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 [#permalink] New post 27 Jan 2005, 14:55
(A) - it fills all classes it opens. It has opened new classes, so membership cannot decrease.

(B) - number of classes has declined last year. So? they have increased the number of classes - membership cannot go down if the number of classes has declined over the last year. There's no information available as to what was the occupancy last year

(C) - there are other exotic classes available, which folks aren't aware of. So? How will this go against increasing their membership?

(D) - they're part of a consortium that hold 88% of the market share - there's no information available on how this information correlates with their increase in membership

(E) - their sales have fallen in the last 5 years - how's it necessary that sales will fall this year as well? After all, they've added new classes and are advertising aggresively.

I haven't been able to infer the correct answer. Please post your answers with explainations.
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 [#permalink] New post 27 Jan 2005, 15:41
(A) and (E) sound similar but considering (A) further states that Fitness Express currently fills all its classes, then i will go with (E)
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 [#permalink] New post 27 Jan 2005, 16:24
answer is E.

"Health club membership has increased dramatically over the last five years" doesn't mean Fitness Express's membership increase too. If marketing expense stays high and sales goes down, the plan definitely won't work.

This question is a clone of OG
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Re: CR - Health club membership [#permalink] New post 27 Jan 2005, 20:38
Yes this is a hard one. I don't have an answer as well. But if I was forced to choose I'd probably choose (D), for the following reason:

A. Although it fills all of the classes it opens, Fitness Express’s share of all health club memberships has declined over the last five years.
That's why the plan to advertise more and open more classes will work.

B. Fitness Express’ number of classes offered to their clients has declined slightly over the last year.
Again that's why they should open more classes.

C. Advertising has made the name of Fitness Express widely known, but few customers know that Fitness Express health clubs also off acupuncture and shiatsu treatments.
That's why it should advertise more about these unknown classes.

D. Fitness Express’s health clubs is one of three clubs that have together accounted for 88% of health club memberships.
If they already have very large of market share they may have already got all the members that they could get. There might not be many people that can be attracted to them who are not yet one of their members.

E. Despite a slight decline in membership price, sales of Fitness Express memberships have fallen in the last five year.
That's why they need to do more advertising and adopt other means to attract customers, such as open more classes.
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 [#permalink] New post 29 Jan 2005, 13:12
DLMD wrote:
answer is E.

"Health club membership has increased dramatically over the last five years" doesn't mean Fitness Express's membership increase too. If marketing expense stays high and sales goes down, the plan definitely won't work.

This question is a clone of OG


OA is (E)

DLMD, you are right. This IS a clone of OG. Just have to read carefully!!!
  [#permalink] 29 Jan 2005, 13:12
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