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In many surveys, American consumers have expressed a [#permalink]
11 Feb 2010, 20:39
Question Stats:
54% (01:50) correct
45% (01:11) wrong based on 37 sessions
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 costs 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 After one year, Bleach-O Green had failed to capture a significant share of the detergent market and was withdrawn from sale.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 extend 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? Please explain your choices in your posts.
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Manager
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Bleach-O couldnt capture significant share even though its eco friendly and 5% more than typical detergents and consumers are willing to buy eco friendly products upto 10% more
A ) this could explain that bleach-O didnt do its part as a detergent B) if there are lot other eco friendly detergents, then consumers might prefer those coz they might be cheaper and therby bleach-O might not have got to a significant portion of the market share C) cost of bleach O can be more than other detergents but this doenst explain why bleach O didnt capture significant market share even though it is eco friendly and in the range of consumer buying price. D & E - if consumers didnt believe that bleach-O is effective, then they wouldnt buy this as this would be costly than normal detergents and also might prefer to buy some other product which is eco friendly
C
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Senior Manager
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I would go with B.
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Joined: 11 Dec 2009
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Bleach-O Green failed because it did not capture a significant share of the detergent market. A) How effective as a detergent was Bleach-O Green? If a product doesn't work then this could explain its failure to capture market share B) How many other detergents on the market were promoted as safe for the environment? Could explain failure due to heavy competition C) How much more did Bleach-O Green cost to manufacture than ordinary detergents?Failure in the passage is based on Bleach-O Green's inability to capture significant market share and high or low manufacturing cost will not directly effect market share D) To what extend did consumers accept the validity of Bleach-O Green advertised and promoted to consumers? To what extent did consumers accept the validity of Bleach-O Green's advertisements and promotions?I couldn't understand this question, I think it needs to be reworded. It failed because consumers did not believe in Bleach-O Green's advertisement claims E) How effectively was Bleach-O Green advertised and promoted to consumers? If consumers don't know a product even exists, then this could explain its failure
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BarneyStinson 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 costs 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 extend 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? Please explain your choices in your posts. A. Relevant choice. If the bleach was not working, it would not sell. B. Also relevant choice, if the market was over-saturated with other "similar" products this could be the reason for failure. C. Bingo. Cost of manufacture is irrelevant to market share in the current context. D. Relevant, if consumers didn't think this was really a "green" product why would they pay the premium? E. Relevant, similar to D. If consumers didn't know it existed...
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Manager
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IMO C
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Manager
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D) To what extend did consumers accept the validity of Bleach-O Green advertised and promoted to consumers?
i would say the answer as D if consumers doesn't accept the Bleach-O then they wouldn't buy Bleach-O
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Manager
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sorry the answer has to be C i ignored the least likely part in the question
the price is 5% higher which is less than 10% stated so cost is irrelevant here
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Manager
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please post the OA and source
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Manager
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100% C.
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Senior Manager
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It should be C. Barney, please post the OA.
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Senior Manager
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quote="BarneyStinson"]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 costs 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 extend 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? Please explain your choices in your posts.[/quote] OA is C The reason is already given- we have this mfg info in the text provided (though I missed at first but when re-read then got  )
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crystal C it is.
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+1 C it doesn't matter how much the new detergent costs inside the company; after all, it costs 5% more to the consumers.
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Manager
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Senior Manager
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looks C to be least effective.
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Manager
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C is the only irrelevant item on the menu. since the cost of manufacturer was never a factor for the conclusion
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Manager
Status: Completed GMAT on 22 Nov 2011
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Clearly, C
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