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In many surveys, American consumers have expressed a

• 60% [3]
• 40% [2]
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Director
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In many surveys, American consumers have expressed a [#permalink]

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26 Mar 2005, 04:13
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In many surveys, American consumers have expressed a willingness to spend up to 10 percent more for products that are ecologically sound. Encouraged by such surveys, Bleach-O Corporation promoted a new laundry detergent, Bleach-O Green, as safer for the environment. Bleach-O Green cost 5 percent more than typical detergents. After one year, Bleach-O Green had failed to capture a significant share of the detergent market and was withdrawn from sale.
Which of the following questions is LEAST likely to be relevant in determining the reasons for the failure of Bleach-O Green?
(A) How effective as a detergent was Bleach-O Green?
(B) How many other detergents on the market were promoted as safe for the environment?
(C) How much more did Bleach-O Green cost to manufacture than ordinary detergents?
(D) To what extent did consumers accept the validity of Bleach-O Green advertised and promoted to consumers?
(E) How effectively was Bleach-O Green advertised and promoted to consumers?
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VP
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26 Mar 2005, 05:20
Vithal wrote:
In many surveys, American consumers have expressed a willingness to spend up to 10 percent more for products that are ecologically sound. Encouraged by such surveys, Bleach-O Corporation promoted a new laundry detergent, Bleach-O Green, as safer for the environment. Bleach-O Green cost 5 percent more than typical detergents. After one year, Bleach-O Green had failed to capture a significant share of the detergent market and was withdrawn from sale.
Which of the following questions is LEAST likely to be relevant in determining the reasons for the failure of Bleach-O Green?
(A) How effective as a detergent was Bleach-O Green?
(B) How many other detergents on the market were promoted as safe for the environment?
(C) How much more did Bleach-O Green cost to manufacture than ordinary detergents?
(D) To what extent did consumers accept the validity of Bleach-O Green advertised and promoted to consumers?
(E) How effectively was Bleach-O Green advertised and promoted to consumers?

I also go C for this.

Now that the argument has talked about what does Bleach-O Green cost, we need not care about its manufacturing cost. We just need know its sales price.
Director
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26 Mar 2005, 06:07
here is where I was stuck...doesn't the cost of manufacturing determine the lifetime of the detergent? say, the new detergent costs 1 cent to manufacture vs $4 it would take to manufacture the ordinary detergent - I do not see a reason why the company would pull it out of the market. Please highlight the flaw in my reasoning? Director Joined: 18 Feb 2005 Posts: 673 Followers: 1 Kudos [?]: 6 [0], given: 0 Show Tags 26 Mar 2005, 06:45 Whys isnt it D The argument says that the people wanted a detergent that would save env..and are willing to buy even if it costs a few cents/$ more.

So it should have been related to what was advertised and what it delivered taking the people's confidence for a ride.

Is my thinking tangential to the argument?
Director
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26 Mar 2005, 07:31
gmat2me2 wrote:
Whys isnt it D

The argument says that the people wanted a detergent that would save env..and are willing to buy even if it costs a few cents/\$ more.

So it should have been related to what was advertised and what it delivered taking the people's confidence for a ride.

Is my thinking tangential to the argument?

the question asks for LEAST likely to be relevant
Director
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26 Mar 2005, 10:06
C) cost of manufacturing is the least relevant information
26 Mar 2005, 10:06
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