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quality/price

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VP
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quality/price [#permalink] New post 17 Sep 2007, 16:03
The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position. Therefore, either increasing the quality or lowering the price of a given product will increase the likelihood that consumer will select that product rather than a competing one.

Which of the following, if true, would most strengthen the conclusion drawn above?

(A) It is possible to increase both the quality and the price of a product without changing its competitive position.
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
(C) Competing products often try to appeal to different segments of the population of consumers.
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
(E) Consumers’ perceptions of the quality of a product are based on the actual quality of the product.
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 [#permalink] New post 17 Sep 2007, 17:50
I would go with C, because , the author is trying to promote competitiveness..

Competing products often appeal to different segments, supports the conclustion
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Re: quality/price [#permalink] New post 17 Sep 2007, 17:57
Ravshonbek wrote:
The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position. Therefore, either increasing the quality or lowering the price of a given product will increase the likelihood that consumer will select that product rather than a competing one.

Which of the following, if true, would most strengthen the conclusion drawn above?

(A) It is possible to increase both the quality and the price of a product without changing its competitive position.
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
(C) Competing products often try to appeal to different segments of the population of consumers.
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
(E) Consumers’ perceptions of the quality of a product are based on the actual quality of the product.


I think E.
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Re: quality/price [#permalink] New post 17 Sep 2007, 22:09
Ravshonbek wrote:
The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position. Therefore, either increasing the quality or lowering the price of a given product will increase the likelihood that consumer will select that product rather than a competing one.

Which of the following, if true, would most strengthen the conclusion drawn above?

(A) It is possible to increase both the quality and the price of a product without changing its competitive position.
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
(C) Competing products often try to appeal to different segments of the population of consumers.
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
(E) Consumers’ perceptions of the quality of a product are based on the actual quality of the product.


answer E!
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 [#permalink] New post 18 Sep 2007, 13:00
I think its E.

but why???
Can anyone please explain?
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Re: quality/price [#permalink] New post 18 Sep 2007, 21:03
Ravshonbek wrote:
The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position. Therefore, either increasing the quality or lowering the price of a given product will increase the likelihood that consumer will select that product rather than a competing one.

Which of the following, if true, would most strengthen the conclusion drawn above?

(A) It is possible to increase both the quality and the price of a product without changing its competitive position.
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
(C) Competing products often try to appeal to different segments of the population of consumers.
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
(E) Consumers’ perceptions of the quality of a product are based on the actual quality of the product.


This is def E. We are trying to strengthen the conclusion: either increasing the quality or lowering the price of a given product will increase the likelihood that consumer will select that product rather than a competing one.

Anything that doesn't discuss a customer chosing the product b/c of quality or lowering of price is irrelevant.

A. We are talking about increasing Q and DECREASING P. irrelevant and goes against passage.
B. Does not help us determine whether customers will choose a product if the price or quality is changed.
C. So? this is irrelevant. Nothing is discussed about different segments, we want to know if changing the price or quality will affect how a consumer buys the product over competing brands.
D. Neither of these are discussed in the passage. Even if they were, it doesn't strengthen the conclusion that changing price or quality or both will affect how customers choose between product X and it's competitor.

E. perceptions are based on Quality. Bingo! If customers base their perceptions on the ACTUAL quality of the product, then changing the quality will effect their perceptions. This will have an affect on customers that will likely cause them to CHOOSE brand X over brand Y b/c we can manipulate the ACTUAL quality!
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 [#permalink] New post 26 Sep 2007, 18:14
Interesting . I would have to lean to E ....

Ravshonbek, do you have the OA/OE ?
  [#permalink] 26 Sep 2007, 18:14
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