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Over the past five years, the price gap between name-brand

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Over the past five years, the price gap between name-brand [#permalink] New post 24 Oct 2012, 04:40
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A
B
C
D
E

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Over the past five years, the price gap between name-brand cereals and less expensive store-brand cereals has become so wide that consumers have been switching increasingly to store brands despite the name brands’ reputation for better quality. To attract these consumers back, several manufacturers of name-brand cereals plan to narrow the price gap between their cereals and store brands to less than what it was five years ago.

Which of the following, if true, most seriously calls into question the likelihood that the manufacturers’ plan will succeed in attracting back a large percentage of consumers who have switched to store brands?

A. There is no significant difference among manufacturers of name-brand cereals in the prices they charge for their products.
B. Consumers who have switched to store-brand cereals have generally been satisfied with the quality of those cereals.
C. Many consumers would never think of switching to store-brand cereals because they believe the name brand cereals to be of better quality.
D. Because of lower advertising costs, stores are able to offer their own brands of cereals at significantly lower prices than those charged for name-brand cereals.
E. Total annual sales of cereals—including both name-brand and store-brand cereals—have not increased significantly over the past five years.

OA after some discussion....
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Re: Over the past five years, the price gap between name-brand c [#permalink] New post 24 Oct 2012, 05:03
Jp27 wrote:
Over the past five years, the price gap between name-brand cereals and less expensive store-brand cereals has become so wide that consumers have been switching increasingly to store brands despite the name brands’ reputation for better quality. To attract these consumers back, several manufacturers of name-brand cereals plan to narrow the price gap between their cereals and store brands to less than what it was five years ago.

Which of the following, if true, most seriously calls into question the likelihood that the manufacturers’ plan will succeed in attracting back a large percentage of consumers who have switched to store brands?

A. There is no significant difference among manufacturers of name-brand cereals in the prices they charge for their products.
B. Consumers who have switched to store-brand cereals have generally been satisfied with the quality of those cereals.
C. Many consumers would never think of switching to store-brand cereals because they believe the name brand cereals to be of better quality.
D. Because of lower advertising costs, stores are able to offer their own brands of cereals at significantly lower prices than those charged for name-brand cereals.
E. Total annual sales of cereals—including both name-brand and store-brand cereals—have not increased significantly over the past five years.

OA after some discussion....


CDE can be eliminated. None of these has anything to do with the conclusion/argument. Its between A & B.
IMO B. Only B gives us some reason to make the plan less successful.
A seems to contradict with the First premise of the argument.

Hence B.
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Re: Over the past five years, the price gap between name-brand c [#permalink] New post 24 Oct 2012, 08:41
I think its straight B.
Nothing is said about the quality of store brand cereals in the argument. Hence its the spot where the option should strike so as to weaken.
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Re: Over the past five years, the price gap between name-brand c [#permalink] New post 24 Oct 2012, 09:50
I thought the correct choice is B, the consumers are too familiar with their consumption habits. So, changing habit is very challenges.
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Re: Over the past five years, the price gap between name-brand c [#permalink] New post 24 Oct 2012, 09:53
People were willing to pay a slightly higher price for name brand cereal because they thought that the store brand cereals were of poor quality. If they now feel that store brand cereals are of satisfactory quality, they might nit be willing to pay higher prices even if the difference is small.

Answer should be B

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Re: Over the past five years, the price gap between name-brand c   [#permalink] 24 Oct 2012, 09:53
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