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Consumers planning to buy recreational equipment tend to buy
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06 Jul 2009, 21:50
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Consumers planning to buy recreational equipment tend to buy higher quality, more expensive equipment when the economy is strong than when it is weak. Hill and Dale is a business that sells high-quality, expensive camping and hiking equipment in Boravia. Although all the signs are that Boravia’s economy is now entering a period of sustained strength, the managers of the business do not expect a substantial increase in sales. Which of the following, if true, would provide the strongest justification for the managers’ judgment? A. A significant proportion of Hill and Dale’s sales are made to customers who enter the store in order to buy one particular item but, once there, find other items to buy as well. B. In Boravia when the economy is strong, those who might otherwise go camping tend to take vacations overseas. C. The economic upturn is likely to allow Boravia’s national parks, where most of the camping and hiking is done, to receive extra funding to improve their visitor facilities. D. Advances in materials technology have led to the development of hiking and camping equipment that is more comfortable and lightweight than before. E. Many people in Boravia not only are committed to preserving the country’s wilderness areas but also are interested in spending some time in them.
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Re: Consumers planning to buy recreational equipment tend to buy
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06 Jul 2009, 22:28
I'll go with option B.
A. A significant proportion of Hill and Dale’s sales are made to customers who enter the store in order to buy one particular item but, once there, find other items to buy as well. -Irrelevant B. In Boravia when the economy is strong, those who might otherwise go camping tend to take vacations overseas. -Correct. If people choose oversees destinations, they may not buy camping products. C. The economic upturn is likely to allow Boravia’s national parks, where most of the camping and hiking is done, to receive extra funding to improve their visitor facilities. -Goes against the manager's judgment. If parks facilities are improved, people may tend to visit these parks (where most of the camping and hiking is done) in higher number. D. Advances in materials technology have led to the development of hiking and camping equipment that is more comfortable and lightweight than before. -Goes against the manager's judgment. If this is the case, an improving economy should mean people buying better equipments E. Many people in Boravia not only are committed to preserving the country’s wilderness areas but also are interested in spending some time in them. -Irrelevant
Re: Consumers planning to buy recreational equipment tend to buy
[#permalink]
07 Jul 2009, 09:44
I would go for C
If the parks receive extra funding to improve their visitor facilities - this means more camping equipment - so few customers to buy the equipment.
C. The economic upturn is likely to allow Boravia’s national parks, where most of the camping and hiking is done, to receive extra funding to improve their visitor facilities.
Re: Consumers planning to buy recreational equipment tend to buy
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07 Jul 2009, 10:24
vannu wrote:
I would go for C
If the parks receive extra funding to improve their visitor facilities - this means more camping equipment - so few customers to buy the equipment.
I doubt. The option C doesn't give enough information about the kind of facilities improvement. There can be other kindda improvement (like easier access, better sanitation, water facility etc), which can even attract more number of tourists then ever before. In that case the sale of camping equipment should increase.
Re: Consumers planning to buy recreational equipment tend to buy
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07 Jul 2009, 17:57
Quote:
vannu wrote: I would go for C
If the parks receive extra funding to improve their visitor facilities - this means more camping equipment - so few customers to buy the equipment.
I doubt. The option C doesn't give enough information about the kind of facilities improvement. There can be other kindda improvement (like easier access, better sanitation, water facility etc), which can even attract more number of tourists then ever before. In that case the sale of camping equipment should increase.
I agree with you. I misinterpreted the facility to equipment.
Re: Consumers planning to buy recreational equipment tend to buy
[#permalink]
09 Jul 2009, 09:00
I'll also go for B bigoyal's reasoning seems perfect; except that D can also be classified as irrelevant.
bigoyal wrote:
I'll go with option B.
A. A significant proportion of Hill and Dale’s sales are made to customers who enter the store in order to buy one particular item but, once there, find other items to buy as well. -Irrelevant B. In Boravia when the economy is strong, those who might otherwise go camping tend to take vacations overseas. -Correct. If people choose oversees destinations, they may not buy camping products. C. The economic upturn is likely to allow Boravia’s national parks, where most of the camping and hiking is done, to receive extra funding to improve their visitor facilities. -Goes against the manager's judgment. If parks facilities are improved, people may tend to visit these parks (where most of the camping and hiking is done) in higher number. D. Advances in materials technology have led to the development of hiking and camping equipment that is more comfortable and lightweight than before. -Goes against the manager's judgment. If this is the case, an improving economy should mean people buying better equipments E. Many people in Boravia not only are committed to preserving the country’s wilderness areas but also are interested in spending some time in them. -Irrelevant
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Re: Consumers planning to buy recreational equipment tend to buy [#permalink]