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# KAKASHKA

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24 Jun 2003, 06:02
The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position. Therefore, either increasing the quality or lowering the price of a given product will increase the likelihood that consumer will select that product rather than a competing one.

Which of the following, if true, would most strengthen the conclusion drawn above?

(A) It is possible to increase both the quality and the price of a product without changing its competitive position.
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
(C) Competing products often try to appeal to different segments of the population of consumers.
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
(E) Consumers' perceptions of the quality of a product are based on the actual quality of the product.
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24 Jun 2003, 14:01
(E)
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24 Jun 2003, 22:36
yes
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24 Jun 2003, 23:41
Why such names for questions?

is it because they are tricky?
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25 Jun 2003, 00:11
yes. I do not understand it. I think it is A.
can one explain plizzz
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25 Jun 2003, 00:57
let me try !

given info:
1. quality / price = value.
2. > value > competitive position

the argument validates the above two. however, the value here is directly related to the quality of the product, and not to the market perception of the quality. Customer demand is based on this perception. Only if they both are linked directly, "consumer will select that product rather than a competing one."

thats why (e) ...
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25 Jun 2003, 02:40
stolyar wrote:
yes. I do not understand it. I think it is A.
can one explain plizzz

Going to apply to business school this year?
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17 Dec 2006, 12:44
I thought of A as an answer first..

E looks to be good, however what's the problem in A...
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17 Dec 2006, 13:25
A actually weakens the argument. BCD are not related to the conclusion.
E is the correct one.
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17 Dec 2006, 14:58
this link might help... same question

http://www.gmatclub.com/phpbb/viewtopic.php?t=30776
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