NEW HERE? LEARN MORE
closeclose
Last visit was: 26 Apr 2024, 14:08 It is currently 26 Apr 2024, 14:08
Decision Tracker
My Rewards
New posts
New comers' posts

Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel

As part of a plan to overhaul a car company's lagging sales

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
avatar
subhajeet
Manager
Manager
Joined: 12 Jun 2010
Status:MBA Aspirant
Posts: 79
Own Kudos [?]: 247 [3]
Given Kudos: 1
Location: India
Concentration: Finance, International Business
WE:Information Technology (Investment Banking)
Send PM
As part of a plan to overhaul a car company's lagging sales [#permalink] New post   21 Feb 2012, 23:43
3
Bookmarks
00:00
A
B
C
D
E

Difficulty:

15% (low)

Question Stats:

80% (01:49) correct 20% (02:00) wrong based on 298 sessions
Hide Show timer Statistics
As part of a plan to overhaul a car company's lagging sales due to its image as environmentally irresponsible, consultants recently proposed the release of a new car line. The new line of small, high-mileage and hybrid vehicles would appeal to a set of consumers who would never have previously considered buying from the company. In that way, the company could easily retain the market for its traditional vehicles while tapping into a new market niche and expanding its revenue base.

Which of the following, if true, would most strongly support the consultants' proposal?

(A) The majority of cars currently manufactured by the company are large and are not known for their fuel efficiency.
(B) A reliable survey of the company's previous customers showed that most of them would more strongly consider buying from the company again if it offered hybrid vehicles.
(C) Car sales for all companies have lagged in the last two years, but are expected to increase in the next six months.
(D) A new focus on small, high-mileage, and hybrid vehicles would require research and development investment greater than the company's CEO has made in his tenure to date.
(E) As most car companies develop small, high-mileage, and hybrid vehicles, the profit margins in this competitive arena are expected to shrink.

Can anyone help me why option A is wrong.
ShowHide Answer
Official Answer
B
User avatar
rajeevrks27
Retired Moderator
Joined: 26 Aug 2011
Status:Enjoying the GMAT journey....
Posts: 508
Own Kudos [?]: 974 [0]
Given Kudos: 264
Location: India
GMAT 1: 620 Q49 V24
Send PM
GMAT ToolKit User
Re: Car company's lagging sales [#permalink] New post   22 Feb 2012, 00:36
subhajeet wrote:
As part of a plan to overhaul a car company's lagging sales due to its image as environmentally irresponsible, consultants recently proposed the release of a new car line.

the cars manufactured by the company till now have been environmentally irresponsible , thus could be that they take lot of fuel thus depleting a major resource and also causing more pollution

subhajeet wrote:
The majority of cars currently manufactured by the company are large and are not known for their fuel efficiency.

check out the similarity between above written two sentences, therefore choice A merely repeats the premise in different words
IMO B is the correct answer.
avatar
kdraj
Intern
Intern
Joined: 03 Aug 2011
Posts: 49
Own Kudos [?]: 8 [0]
Given Kudos: 3
Schools: Duke '15 (S) Johnson '15 (S) Tepper '15 (I)
Send PM
Reviews Badge
Re: Car company's lagging sales [#permalink] New post   22 Feb 2012, 04:56
subhajeet wrote:
As part of a plan to overhaul a car company's lagging sales due to its image as environmentally irresponsible, consultants recently proposed the release of a new car line. The new line of small, high-mileage and hybrid vehicles would appeal to a set of consumers who would never have previously considered buying from the company. In that way, the company could easily retain the market for its traditional vehicles while tapping into a new market niche and expanding its revenue base.

Which of the following, if true, would most strongly support the consultants' proposal?

(A) The majority of cars currently manufactured by the company are large and are not known for their fuel efficiency.
(B) A reliable survey of the company's previous customers showed that most of them would more strongly consider buying from the company again if it offered hybrid vehicles.
(C) Car sales for all companies have lagged in the last two years, but are expected to increase in the next six months.
(D) A new focus on small, high-mileage, and hybrid vehicles would require research and development investment greater than the company's CEO has made in his tenure to date.
(E) As most car companies develop small, high-mileage, and hybrid vehicles, the profit margins in this competitive arena are expected to shrink.

Can anyone help me why option A is wrong.


I am confused between A and B. But would go with A in exam circumstances.

The only thing which stops me from choosing B is that it talks about previous customers. Isnt this option assuming that if the previous customers come back to buy the new line of cars, the new customers also will buy them ? I am not sure if any option which makes the reader make additional assumptions is right.
avatar
subhajeet
Manager
Manager
Joined: 12 Jun 2010
Status:MBA Aspirant
Posts: 79
Own Kudos [?]: 247 [0]
Given Kudos: 1
Location: India
Concentration: Finance, International Business
WE:Information Technology (Investment Banking)
Send PM
Re: Car company's lagging sales [#permalink] New post   22 Feb 2012, 05:38
kdraj: I too agree with you, I also had the same reasoning and chose A instead.
avatar
bobbynakka
Intern
Intern
Joined: 15 Nov 2011
Posts: 21
Own Kudos [?]: 7 [0]
Given Kudos: 8
Location: United States
Send PM
Re: Car company's lagging sales [#permalink] New post   22 Feb 2012, 14:31
Quote:
my explanations are highlighted

As part of a plan to overhaul a car company's lagging sales due to its image as environmentally irresponsible, consultants recently proposed the release of a new car line. The new line of small, high-mileage and hybrid vehicles would appeal to a set of consumers who would never have previously considered buying from the company. In that way, the company could easily retain the market for its traditional vehicles while tapping into a new market niche and expanding its revenue base.

Which of the following, if true, would most strongly support the consultants' proposal?

(A) The majority of cars currently manufactured by the company are large and are not known for their fuel efficiency. (There is no discussion about fuel efficieny in the paragraph. You assumed environmentally irresponsible meant fuel, but it could be emmissions and not fuel conservation
(B) A reliable survey of the company's previous customers showed that most of them would more strongly consider buying from the company again if it offered hybrid vehicles. (hybrid vehicles would appeal - says B is the answer
(C) Car sales for all companies have lagged in the last two years, but are expected to increase in the next six months. That has nothing to do with hybrids too general
(D) A new focus on small, high-mileage, and hybrid vehicles would require research and development investment greater than the company's CEO has made in his tenure to date. Too much of reach here
(E) As most car companies develop small, high-mileage, and hybrid vehicles, the profit margins in this competitive arena are expected to shrink. this is about sales not about profits

Can anyone help me why option A is wrong.
User avatar
avohden
Senior Manager
Senior Manager
Joined: 09 Jul 2013
Status:1,750 Q's attempted and counting
Affiliations: University of Florida
Posts: 421
Own Kudos [?]: 2977 [2]
Given Kudos: 630
Location: United States (FL)
Schools: Warrington (A)
GMAT 1: 570 Q42 V28
GMAT 2: 610 Q44 V30
GMAT 3: 600 Q45 V29
GMAT 4: 590 Q35 V35
GPA: 3.45
WE:Accounting (Accounting)
Send PM
Re: As part of a plan to overhaul a car company's lagging sales [#permalink] New post   Updated on: 19 Nov 2013, 10:49
2
Kudos
This question is from GMAT Hacks daily question of the day archive. I'm not sure when this question originally appeared on Jeff Sackmann's site but it reappeared on January 1, 2013. Here is the link to the question from 2013
https://www.gmathacks.com/daily/20130101-gmat-question-of-the-day.html

The Official Explanation is as follows:

Answer: B This is a strengthen question. The proposal involves releasing a new line of small, high-mileage, and hybrid vehicles, which don't appear to have previously been the company's strong suit. The argument assumes that releasing the new line will have the effect of increasing revenue without losing its current customer base. Consider each choice in turn:

(A) This choice suggests that the company has a lot of improvements to make, but it doesn't tell us whether those improvements, as suggested by the consultants, would have the desired impact.
(B) This is correct. The survey (a "reliable" one, so we don't have to worry about sampling issues) addresses the potential concern that the company would lose its previous customers, who were not customers of smaller or hybrid vehicles.(C) This weakens the argument somewhat, suggesting that perhaps this car company's sales lagged only because of industry-wide declines.
(D) This is irrelevant. The argument is concerned with revenue, not with costs.
(E) As with (D), this choice is not relevant to expanding "revenue" base. Profit margins consider both revenue and cost. In order for this choice to be correct, we would need to know that developing this type of vehicle would cause revenues to shrink, not just profits.


Originally posted by avohden on 03 Oct 2013, 22:51.
Last edited by avohden on 19 Nov 2013, 10:49, edited 1 time in total.
User avatar
jlgdr
VP
VP
Joined: 06 Sep 2013
Posts: 1345
Own Kudos [?]: 2391 [1]
Given Kudos: 355
Concentration: Finance
Schools: Wharton '17 (A) HBS '17 (WA$)
Send PM
GMAT ToolKit User
Re: As part of a plan to overhaul a car company's lagging sales [#permalink] New post   14 Oct 2013, 11:24
1
Kudos
subhajeet wrote:
As part of a plan to overhaul a car company's lagging sales due to its image as environmentally irresponsible, consultants recently proposed the release of a new car line. The new line of small, high-mileage and hybrid vehicles would appeal to a set of consumers who would never have previously considered buying from the company. In that way, the company could easily retain the market for its traditional vehicles while tapping into a new market niche and expanding its revenue base.

Which of the following, if true, would most strongly support the consultants' proposal?

(A) The majority of cars currently manufactured by the company are large and are not known for their fuel efficiency.
(B) A reliable survey of the company's previous customers showed that most of them would more strongly consider buying from the company again if it offered hybrid vehicles.
(C) Car sales for all companies have lagged in the last two years, but are expected to increase in the next six months.
(D) A new focus on small, high-mileage, and hybrid vehicles would require research and development investment greater than the company's CEO has made in his tenure to date.
(E) As most car companies develop small, high-mileage, and hybrid vehicles, the profit margins in this competitive arena are expected to shrink.

Can anyone help me why option A is wrong.


Hey all, I have a bit of a hard time understanding this one.
Is there any good analysis made in this question, maybe someone could give it a shot and earn some Kudos from me!

I'll give it a shot but not quite sure about this one, let's see
Stimulus - So it is basically saying that their plan is to get new customers to buy more cars that will be a new line of hybrid and high mileage.
Question- So what would strengthen this?
Answer Choices- A) This one could be, since it means that current customers are different that potential customers. So i'll keep this one
B) Not too sure what this one means, says that current customers would buy again. But in stimulus it says that the new model would appeal to a set of consumers who would never have previously considered buying from the company. So I guess it contradicts somehow. I don't honestly think this is the correct one
C) So what? Out of scope
D) Out of scope, I don't give a heck about R+D
E) Out of scope too, we don't care about profit margins

So IMO it is A
Happy to discuss with anyone
Cheers
J :)

Bumpingggg
avatar
rishabhmudgal
Intern
Intern
Joined: 30 Jun 2014
Posts: 13
Own Kudos [?]: 28 [0]
Given Kudos: 177
Concentration: Strategy, General Management
GMAT 1: 640 Q50 V26
Send PM
GMAT ToolKit User
Re: As part of a plan to overhaul a car company's lagging sales [#permalink] New post   18 Nov 2014, 11:59
IMO b, coz the question stem is asking wat will support the proposal, that the new car will sell. Option A can have both good and negative impacts, such as due to old image ppl wont buy new hybrid cars too.
User avatar
VerbalBot
Non-Human User
Joined: 01 Oct 2013
Posts: 17226
Own Kudos [?]: 848 [0]
Given Kudos: 0
Send PM
Re: As part of a plan to overhaul a car company's lagging sales [#permalink] New post   17 Feb 2020, 22:58
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
GMAT Club Bot
gmatclubot
Re: As part of a plan to overhaul a car company's lagging sales [#permalink]
17 Feb 2020, 22:58
Moderators:
GMATNinja
GMAT Club Verbal Expert
6923 posts
GMATNinjaTwo
GMAT Club Verbal Expert
238 posts
mysterymanrog
CR Forum Moderator
832 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions