Find all School-related info fast with the new School-Specific MBA Forum

It is currently 25 Oct 2014, 22:27

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.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Pricing is the most influential medium of communication that

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Intern
Intern
avatar
Joined: 17 Oct 2012
Posts: 1
Followers: 0

Kudos [?]: 0 [0], given: 2

Re: Pricing is the most influential medium of communication that [#permalink] New post 10 Jan 2013, 18:38
carcass wrote:
The passage is primarily concerned with:
1. Analyzing the various advantages and disadvantages of various pricing strategies. nothing is mentioned into the passage about vantages and disadvantages
2. Describing the various aspects of pricing process nope
3. Explaining the importance of humanizing the process of price fixing this is the correct answer
4. Identifying steps to adapt pricing strategy to changing trends. no trends
5. Discussing about the changing trends in consumer behavior with regards to unfair pricing nope

By using the phrase ‘running the numbers’ the author is referring to what practice?
1. Running complex equations on a computer to generate a number to fix the price. no mentioned
2. Making calculations for optimizing profits. no mentioned
3. Making decisions solely based on calculations ignoring unquantifiable variables that may have a greater impact.this is a consequence
4. Using traditional methods for calculation and price fixing. correct, is the technique per se
5. Running simulations on statistical data to fix price. nope

The author of the passage is LEAST likely to make which of the following recommendations to Businessmen.
1. Instead of using pricing for profits, businessmen should use pricing to increase consumer satisfaction. in the right direction toward the customers
2. They should avoid hidden costs and simplify the terms of use of their service for better understanding. idem
3. Businessmen should look at value creation for the consumer too along with traditional strategies for price fixing. the passage say that classic approach is incorrect and here the businessmen should use it ?? correct
4. They should use pricing as an effective means for communicating with customers. idem
5. They should try to position themselves so that they may be able to influence the perceived level of fairness of the price of their product. idem in the last sentence

According to the passage, which of the following describes present day consumer most accurately?
1. Consumers sometimes use modern tools to criticize products and service. nope the passage says: disseminate information about a firm’s prices, exploiting social media platforms to publicize policies that they believe are unfair NOT sometimes
2. Consumers raise their voices against products or services which they feel are unjust. correct
3. They sometimes force companies to lower prices. nope 4. They use social media to strongly oppose price increases. nope
5. They sometimes threaten to stop using product. nope




C,C,C,C

for By using the phrase ‘running the numbers’ the author is referring to what practice?
1. Running complex equations on a computer to generate a number to fix the price. no mentioned
2. Making calculations for optimizing profits. no mentioned
3. Making decisions solely based on calculations ignoring unquantifiable variables that may have a greater impact.this is a consequence look here , unquatifying variable mean coustomer satisfaction


4. Using traditional methods for calculation and price fixing. correct, is the technique per se 5. Running simulations on statistical data to fix price. nope
Director
Director
avatar
Joined: 03 Aug 2012
Posts: 914
Concentration: General Management, General Management
GMAT 1: 630 Q47 V29
GMAT 2: 680 Q50 V32
GPA: 3.7
Followers: 13

Kudos [?]: 239 [0], given: 318

Premium Member CAT Tests
Re: Pricing is the most influential medium of communication that [#permalink] New post 11 Jan 2013, 21:05
Old thread without an OA :)

BTW my take is C,D,C,B

E-gmat can you post the OA for this golden thread !!!.

Rgds,
Saurabh
_________________

Rgds,
TGC!
_____________________________________________________________________
I Assisted You => KUDOS Please
_____________________________________________________________________________

Manager
Manager
User avatar
Joined: 04 Oct 2011
Posts: 225
Location: India
Concentration: Entrepreneurship, International Business
GMAT 1: 440 Q33 V13
GMAT 2: 0 Q0 V0
GPA: 3
Followers: 0

Kudos [?]: 27 [0], given: 44

Re: Pricing is the most influential medium of communication that [#permalink] New post 15 Jan 2013, 01:14
IMO

1 E
2 D
3 C
4 D

Waiting for OA :)
_________________

GMAT - Practice, Patience, Persistence
Kudos if u like :)

Intern
Intern
avatar
Joined: 15 Aug 2012
Posts: 47
Followers: 1

Kudos [?]: 19 [0], given: 2

Re: Pricing is the most influential medium of communication that [#permalink] New post 28 Jan 2013, 05:32
The passage is primarily concerned with: (D)
1. Analyzing the various advantages and disadvantages of various pricing strategies. only disadvantage of traditional & adv of other strategies is mentioned
2. Describing the various aspects of pricing process - only 1 aspect of pricing v.i.z price fixing is discussed
3. Explaining the importance of humanizing the process of price fixing - this talks only about 1 strategy, there are other strategies as well
4. Identifying steps to adapt pricing strategy to changing trends. correct, the author talks about how present day consumer would react to traditional pricing strategies and how to adopt to such consumers
5. Discussing about the changing trends in consumer behavior with regards to unfair pricing - only portion of the passage

By using the phrase ‘running the numbers’ the author is referring to what practice? (D)
1. Running complex equations on a computer to generate a number to fix the price. OFS
2. Making calculations for optimizing profits.Inconsistent, traditional strategies are used for maximum profits
3. Making decisions solely based on calculations ignoring unquantifiable variables that may have a greater impact. OFS
4. Using traditional methods for calculation and price fixing. correct
5. Running simulations on statistical data to fix price. OFS

The author of the passage is LEAST likely to make which of the following recommendations to Businessmen. (A)
1. Instead of using pricing for profits, businessmen should use pricing to increase consumer satisfaction. Correct
2. They should avoid hidden costs and simplify the terms of use of their service for better understanding. Opposite, mentioned in passage
3. Businessmen should look at value creation for the consumer too along with traditional strategies for price fixing. Opposite, mentioned in passage
4. They should use pricing as an effective means for communicating with customers.Opposite, mentioned in passage
5. They should try to position themselves so that they may be able to influence the perceived level of fairness of the price of their product. Opposite, mentioned in passage

According to the passage, which of the following describes present day consumer most accurately? (B)
1. Consumers sometimes use modern tools to criticize products and service. nope the passage says: disseminate information about a firm’s prices, exploiting social media platforms to publicize policies that they believe are unfair NOT sometimes
2. Consumers raise their voices against products or services which they feel are unjust. correct
3. They sometimes force companies to lower prices. OFS, the consumers force companies to lower only if the rise is unjustified
4. They use social media to strongly oppose price increases. OFS, consumers use SM to oppose unjust policies not price increase
5. They sometimes threaten to stop using product. OFS, Consumers don't hesitate not threaten to stop using the product
Senior Manager
Senior Manager
User avatar
Status: Final Lap
Joined: 25 Oct 2012
Posts: 294
Concentration: General Management, Entrepreneurship
GPA: 3.54
WE: Project Management (Retail Banking)
Followers: 2

Kudos [?]: 105 [0], given: 85

Re: Pricing is the most influential medium of communication that [#permalink] New post 28 Jan 2013, 06:07
I got

1- A
2- D
3- E
4- B

Where is the OA plz ?! :?
_________________

KUDOS is the good manner to help the entire community.

"If you don't change your life, your life will change you"

Senior Manager
Senior Manager
avatar
Joined: 08 Jun 2010
Posts: 454
Followers: 0

Kudos [?]: 30 [0], given: 39

Re: Pricing is the most influential medium of communication that [#permalink] New post 02 Feb 2013, 00:08
easy passage but very hard questions.

this is to show that we need to pratice answerring question more.
Intern
Intern
avatar
Joined: 24 Sep 2012
Posts: 41
Followers: 0

Kudos [?]: 3 [0], given: 76

Re: Pricing is the most influential medium of communication that [#permalink] New post 18 Feb 2013, 21:04
Hello,
My answers B B C D.
Regards,
Pritish
Expert Post
Verbal Forum Moderator
Verbal Forum Moderator
User avatar
Status: Preparing for the another shot...!
Joined: 03 Feb 2011
Posts: 1425
Location: India
Concentration: Finance, Marketing
GPA: 3.75
Followers: 129

Kudos [?]: 648 [0], given: 62

GMAT ToolKit User Premium Member
Re: Pricing is the most influential medium of communication that [#permalink] New post 20 Feb 2013, 09:52
Expert's post
Manager
Manager
avatar
Joined: 21 Aug 2012
Posts: 170
Followers: 0

Kudos [?]: 10 [0], given: 7

Re: Pricing is the most influential medium of communication that [#permalink] New post 24 Feb 2013, 02:07
Everyone has varying answers ... My take is CCAB ... please post OAs ...
Intern
Intern
avatar
Status: Mr
Joined: 28 Jan 2013
Posts: 2
Location: India
Concentration: General Management, International Business
GMAT Date: 06-11-2013
WE: Information Technology (Other)
Followers: 0

Kudos [?]: 5 [0], given: 0

Re: Pricing is the most influential medium of communication that [#permalink] New post 25 Feb 2013, 01:01
My ANS::

1. 2
2. 3
3. 4
4. 4

Thanks
Rahul
Intern
Intern
User avatar
Joined: 20 Feb 2011
Posts: 34
Location: United States
GMAT 1: 560 Q45 V23
WE: Information Technology (Consulting)
Followers: 0

Kudos [?]: 8 [0], given: 42

GMAT ToolKit User
Re: Pricing is the most influential medium of communication that [#permalink] New post 25 Jul 2013, 14:48
Where are the official answers ?

I got them as

1) c - . Pricing instead should be strategically used to create shared value for both the company as well as the customers. The key step towards such pricing would be to humanize the process by focusing on consumer relations and not solely on the transactions. [These lines in Para 2 highlight the crux of the passage.]

2) c,d - The traditional approach for fixing the price by ‘running the numbers’ . [to me both look similar, as eventually you are making a decision based on calculations only. ]

3) c - Businessmen should look at value creation for the consumer too along with traditional strategies for price fixing. [At No point author advises to use both strategies at the same time, but rather strongly speaks of shedding the traditional approach]

4) b - Consumers raise their voices against products or services which they feel are unjust. [Author re-enforces this point with the use of Bank Of America example.]
_________________

And many strokes, though with a little axe, hew down and fell the hardest-timbered oak. - William Shakespeare

Intern
Intern
avatar
Joined: 17 Jun 2012
Posts: 18
Concentration: Finance, Marketing
GMAT 1: 750 Q50 V41
GMAT 2: Q V
GMAT 3: Q V
WE: Corporate Finance (Commercial Banking)
Followers: 2

Kudos [?]: 24 [0], given: 29

Re: Pricing is the most influential medium of communication that [#permalink] New post 11 Aug 2013, 04:55
My answers--
1. 3
2. 4
3. 3
4. 4

Somebody from e-GMAT kindly post the OAs...
Manager
Manager
avatar
Joined: 25 Sep 2012
Posts: 215
Followers: 0

Kudos [?]: 61 [0], given: 156

GMAT ToolKit User Reviews Badge CAT Tests
Re: Pricing is the most influential medium of communication that [#permalink] New post 12 Aug 2013, 03:42
My answers are 3322
I don't think we are going to get OA's
SVP
SVP
User avatar
Joined: 06 Sep 2013
Posts: 1794
Location: United States
Concentration: Finance
GMAT 1: 710 Q48 V39
WE: Corporate Finance (Investment Banking)
Followers: 16

Kudos [?]: 202 [0], given: 310

GMAT ToolKit User
Re: Pricing is the most influential medium of communication that [#permalink] New post 16 Oct 2013, 12:00
carcass wrote:
The passage is primarily concerned with:
1. Analyzing the various advantages and disadvantages of various pricing strategies. nothing is mentioned into the passage about vantages and disadvantages
2. Describing the various aspects of pricing process nope
3. Explaining the importance of humanizing the process of price fixing this is the correct answer
4. Identifying steps to adapt pricing strategy to changing trends. no trends
5. Discussing about the changing trends in consumer behavior with regards to unfair pricing nope

By using the phrase ‘running the numbers’ the author is referring to what practice?
1. Running complex equations on a computer to generate a number to fix the price. no mentioned
2. Making calculations for optimizing profits. no mentioned
3. Making decisions solely based on calculations ignoring unquantifiable variables that may have a greater impact.this is a consequence
4. Using traditional methods for calculation and price fixing. correct, is the technique per se
5. Running simulations on statistical data to fix price. nope

The author of the passage is LEAST likely to make which of the following recommendations to Businessmen.
1. Instead of using pricing for profits, businessmen should use pricing to increase consumer satisfaction. in the right direction toward the customers
2. They should avoid hidden costs and simplify the terms of use of their service for better understanding. idem
3. Businessmen should look at value creation for the consumer too along with traditional strategies for price fixing. the passage say that classic approach is incorrect and here the businessmen should use it ?? correct
4. They should use pricing as an effective means for communicating with customers. idem
5. They should try to position themselves so that they may be able to influence the perceived level of fairness of the price of their product. idem in the last sentence

According to the passage, which of the following describes present day consumer most accurately?
1. Consumers sometimes use modern tools to criticize products and service. nope the passage says: disseminate information about a firm’s prices, exploiting social media platforms to publicize policies that they believe are unfair NOT sometimes
2. Consumers raise their voices against products or services which they feel are unjust. correct
3. They sometimes force companies to lower prices. nope
4. They use social media to strongly oppose price increases. nope
5. They sometimes threaten to stop using product. nope


Yes Carcass! I agree with your answer choices. 4/4
Let it rain!!

Cheers
J :)
Intern
Intern
avatar
Joined: 08 Apr 2012
Posts: 12
Followers: 0

Kudos [?]: 3 [0], given: 6

GMAT ToolKit User
Re: Pricing is the most influential medium of communication that [#permalink] New post 17 Oct 2013, 02:17
My take is:
C
D
A
B
Please post OA's.
Manager
Manager
avatar
Joined: 04 Sep 2012
Posts: 144
Followers: 1

Kudos [?]: 23 [0], given: 27

GMAT ToolKit User
Re: Pricing is the most influential medium of communication that [#permalink] New post 17 Oct 2013, 03:55
My Answers are as following :

1.B
2.D
3.C
4.B
_________________

Regards,
Abhinav

GMAT 1 - 580 (Q47 V23) a-tight-slap-on-face-149457.html

GMAT 2 - 670 (Q48 V34) 670-one-month-off-from-office-and-2-months-hard-work-163761.html#p1297561

“If you don't change your life; your life will change you.”

Manager
Manager
avatar
Joined: 04 Sep 2012
Posts: 144
Followers: 1

Kudos [?]: 23 [0], given: 27

GMAT ToolKit User
Re: Pricing is the most influential medium of communication that [#permalink] New post 17 Oct 2013, 03:59
jlgdr wrote:
carcass wrote:
The passage is primarily concerned with:
1. Analyzing the various advantages and disadvantages of various pricing strategies. nothing is mentioned into the passage about vantages and disadvantages
2. Describing the various aspects of pricing process nope
3. Explaining the importance of humanizing the process of price fixing this is the correct answer
4. Identifying steps to adapt pricing strategy to changing trends. no trends
5. Discussing about the changing trends in consumer behavior with regards to unfair pricing nope

By using the phrase ‘running the numbers’ the author is referring to what practice?
1. Running complex equations on a computer to generate a number to fix the price. no mentioned
2. Making calculations for optimizing profits. no mentioned
3. Making decisions solely based on calculations ignoring unquantifiable variables that may have a greater impact.this is a consequence
4. Using traditional methods for calculation and price fixing. correct, is the technique per se
5. Running simulations on statistical data to fix price. nope

The author of the passage is LEAST likely to make which of the following recommendations to Businessmen.
1. Instead of using pricing for profits, businessmen should use pricing to increase consumer satisfaction. in the right direction toward the customers
2. They should avoid hidden costs and simplify the terms of use of their service for better understanding. idem
3. Businessmen should look at value creation for the consumer too along with traditional strategies for price fixing. the passage say that classic approach is incorrect and here the businessmen should use it ?? correct
4. They should use pricing as an effective means for communicating with customers. idem
5. They should try to position themselves so that they may be able to influence the perceived level of fairness of the price of their product. idem in the last sentence

According to the passage, which of the following describes present day consumer most accurately?
1. Consumers sometimes use modern tools to criticize products and service. nope the passage says: disseminate information about a firm’s prices, exploiting social media platforms to publicize policies that they believe are unfair NOT sometimes
2. Consumers raise their voices against products or services which they feel are unjust. correct
3. They sometimes force companies to lower prices. nope
4. They use social media to strongly oppose price increases. nope
5. They sometimes threaten to stop using product. nope


Yes Carcass! I agree with your answer choices. 4/4
Let it rain!!

Cheers
J :)


Agree with carcass on all answers except 1.
The humanizing process is just discussed in one of the paragraphs but the main point seems to be the pricing process .. After reading various replies I agree B is also not the answer but not totally convinced with c As well.

I dont think e-gmat is anymore interested in posting the OAs, so if anyone can post them from the source will be great.

Thanks
Abhinav
_________________

Regards,
Abhinav

GMAT 1 - 580 (Q47 V23) a-tight-slap-on-face-149457.html

GMAT 2 - 670 (Q48 V34) 670-one-month-off-from-office-and-2-months-hard-work-163761.html#p1297561

“If you don't change your life; your life will change you.”

SVP
SVP
User avatar
Joined: 06 Sep 2013
Posts: 1794
Location: United States
Concentration: Finance
GMAT 1: 710 Q48 V39
WE: Corporate Finance (Investment Banking)
Followers: 16

Kudos [?]: 202 [0], given: 310

GMAT ToolKit User
Re: Pricing is the most influential medium of communication that [#permalink] New post 01 Dec 2013, 15:49
egmat wrote:
Here is a new passage - fresh from the oven. Try it out that strategies that we described in our article on Main point and Paragraph summaries.

Pricing is the most influential medium of communication that companies can use with their customers. Prices send unequivocal messages about what the firm believes in, what it thinks of its customers, and how it wants to interact with them.

The traditional approach for fixing the price by ‘running the numbers’ only aims at maximizing short term profits. Using this mechanical and antagonistic approach solely may not be a sustainable long-term strategy since present day consumers disseminate information about a firm’s prices, exploiting social media platforms to publicize policies that they believe are unfair. And they don’t hesitate to abandon companies that cross the line. For example, when Bank of America announced in September 2011 that it would start charging a $5 monthly debit card fee, the public outcry was so intense that the bank soon rescinded the plan. But the damage was done and account closings increased significantly.

Pricing instead should be strategically used to create shared value for both the company as well as the customers. The key step towards such pricing would be to humanize the process by focusing on consumer relations and not solely on the transactions. Attempts should be made to innovatively design pricing models to facilitate a better consumer experience. Recognizing that many of its customers disliked shipping costs and long waits for delivery, Amazon introduced a service, which, for an annual fee, provides two-day shipping on all orders, thereby eliminating the pain of paying associated with each order. This pricing scheme not only rewards high-volume customers but, more strategically, it also helped Amazon change buying behavior by encouraging customers to do more of their shopping with the company.
Promoting transparency and avoiding complicated pricing plans and obscure contractual terms is another vital practice. A firm that is transparent about the way it makes money fosters engagement and builds trust and goodwill among customers. Hidden costs and consumer traps may help for generating short term revenues but are disadvantageous on a long-term basis. Lastly, companies must closely understand and be able to influence the perceived standards of fairness of the price of their product or service.
The passage is primarily concerned with:
1. Analyzing the various advantages and disadvantages of various pricing strategies.
2. Describing the various aspects of pricing process
3. Explaining the importance of humanizing the process of price fixing
4. Identifying steps to adapt pricing strategy to changing trends.
5. Discussing about the changing trends in consumer behavior with regards to unfair pricing

By using the phrase ‘running the numbers’ the author is referring to what practice?
1. Running complex equations on a computer to generate a number to fix the price.
2. Making calculations for optimizing profits.
3. Making decisions solely based on calculations ignoring unquantifiable variables that may have a greater impact.
4. Using traditional methods for calculation and price fixing.
5. Running simulations on statistical data to fix price.

The author of the passage is LEAST likely to make which of the following recommendations to Businessmen.
1. Instead of using pricing for profits, businessmen should use pricing to increase consumer satisfaction.
2. They should avoid hidden costs and simplify the terms of use of their service for better understanding.
3. Businessmen should look at value creation for the consumer too along with traditional strategies for price fixing.
4. They should use pricing as an effective means for communicating with customers.
5. They should try to position themselves so that they may be able to influence the perceived level of fairness of the price of their product.

According to the passage, which of the following describes present day consumer most accurately?
1. Consumers sometimes use modern tools to criticize products and service.
2. Consumers raise their voices against products or services which they feel are unjust.
3. They sometimes force companies to lower prices.
4. They use social media to strongly oppose price increases.
5. They sometimes threaten to stop using product.




Image

Looking for more practice with audio visual responses. Try out the e-GMAT RC free trial. The free trial has 8-9 passages; 4 in the diagnostic and the rest in the main point concept and application file. You also have a beautifully crafted video solution with each passage.

Click Image to start your free trial


Click Image to hear the testimonials from our beta trial users



Image

We will provide official answers once we have a few responses to the questions.

Regards,

Rajat Sadana


Dear E-GMAT and Mr. Sadana
Please provide OA

I'll take it as a Christmas present

Thanks
Cheers
J :)
Manager
Manager
avatar
Joined: 21 Aug 2012
Posts: 170
Followers: 0

Kudos [?]: 10 [0], given: 7

Re: Pricing is the most influential medium of communication that [#permalink] New post 02 Dec 2013, 06:52
IMO CBEB .... such diverse answers ... we really require the OAs ...
Senior Manager
Senior Manager
avatar
Joined: 06 Aug 2011
Posts: 409
Followers: 2

Kudos [?]: 67 [0], given: 82

Re: Pricing is the most influential medium of communication that [#permalink] New post 12 Dec 2013, 22:19
Too old post.. Bt where egmat ppl have gone?? Please provide OA here !

I think.. A D C B ..
_________________

Bole So Nehal.. Sat Siri Akal.. Waheguru ji help me to get 700+ score !

Re: Pricing is the most influential medium of communication that   [#permalink] 12 Dec 2013, 22:19
    Similar topics Author Replies Last post
Similar
Topics:
180. influential sondenso 5 23 Feb 2008, 19:02
For most consumers, the price of automobile insurance vipin7um 3 24 Mar 2006, 17:53
Professor: Members of most species are able to communicate rahulraao 19 11 Oct 2005, 16:15
For most consumers, the price of automobile insurance sgrover 15 21 Sep 2005, 21:47
Professor: Members of most species are able to communicate WinWinMBA 5 26 May 2005, 11:14
Display posts from previous: Sort by

Pricing is the most influential medium of communication that

  Question banks Downloads My Bookmarks Reviews Important topics  

Go to page   Previous    1   2   3    Next  [ 42 posts ] 



GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.