Seems like an easy passage with easy questions , but the options ( especially in Q2 and Q4) are really similar .
I'm not really interested in see how many answers I got right/wrong but I'm more interested to see if my reasoning is correct . I would really appreciate it if the E-gmat
team could explain all the options in each question !1.The passage is primarily concerned with:
(a) Analyzing the various advantages and disadvantages of various pricing strategies.
Only analyzes the advantages and disadvantages of one strategy ( in the second paragraph ) . In the other paragraphs only the advantages are mentioned .
(b) Describing the various aspects of pricing process
Does'nt really describe "various aspects" of the pricing process . The passage mainly focuses on showing how price fixing should not merely be used to optimize short term profits.
(c) Explaining the importance of humanizing the process of price fixing
I feel this is the main point . In the second paragraph , the author says what would happen if price fixing is not "humanized " and then the subsequent paragraphs show the benefits of humanizing the process of price fixing .
(d) Identifying steps to adapt pricing strategy to changing trends.
Yes this could be the answer , but I feel this depicts the logical structure more rather than fixating on the main point.
(e) Discussing about the changing trends in consumer behavior with regards to unfair pricing
Too specific . This is dealt with only in the second paragraph .
The next question was a bit difficult because nearly all the options seem correct , so I was a bit lost.2.By using the phrase ‘running the numbers’ the author is referring to what practice?
(a) Running complex equations on a computer to generate a number to fix the price.
Hmmm...does it necessarily have to be "Complex equations " ? I could just run "Simple equations " also right ? Probably not the correct option.
(b) Making calculations for optimizing profits.
This could be the answer but I'm not sure if you can generalize to say "optimize profits" , because profits could be either long term or short term .
(c) Making decisions solely based on calculations ignoring unquantifiable variables that may have a greater impact.
"Running numbers" actually refers to the act of "calculating " and not "Decision making".So this is incorrect.
(d) Using traditional methods for calculation and price fixing.
Seems like a typical GMAT "boring" inference answer . But maybe this answer choice is too boring
(e) Running simulations on statistical data to fix price.
I would pick this answer if this were a real world situation . I would probably pick this as the correct option here as well. 3.The author of the passage is LEAST likely to make which of the following recommendations to Businessmen.
(a) Instead of using pricing for profits, businessmen should use pricing to increase consumer satisfaction.
I feel this is the correct option.
Mentioned in the last paragraph
(c) Businessmen should look at value creation for the consumer too along with traditional strategies for price fixing.
Line 2 of paragraph 2 mentions that traditional methods must not solely be used . In paragraph 3 the author mentions that value creation should be used . So the author implies that both methods should be incorporated.
(d) They should use pricing as an effective means for communicating with customers.
Rephrase of the First Paragraph .
(e) They should try to position themselves so that they may be able to influence the perceived level of fairness of the price of their
Mentioned in the last line of the passage.4.According to the passage, which of the following describes present day consumer most accurately?
(a) Consumers sometimes use modern tools to criticize products and service.
I don't think we can assume "social media" to be a modern tool . Social media could've been there in the past , but it's been used only now.
(b) Consumers raise their voices against products or services which they feel are unjust.
Can "unjust products or services " be equated to "unjust policies " ? Probably not.
(c) They sometimes force companies to lower prices.
Very difficult to pick between (B) and (C) . But I think (C) is correct because there is actually one instance of a Company that lowered the price ( actually the company eliminated the price altogether ).
(d) They use social media to strongly oppose price increases.
The passage says that they use social media to oppose policy that they feel are unjust . So these unjust policy need not imply price increase , it could be other things as well.
(e) They sometimes threaten to stop using product.
There's no mention of a "threat" , there is only a mention of them completely abandoning the company .