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

 It is currently 25 Sep 2016, 07:55

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Surveys show that every year only 10 percent of cigarette

Author Message
TAGS:

### Hide Tags

Director
Joined: 29 Jul 2006
Posts: 874
Followers: 3

Kudos [?]: 86 [0], given: 0

Surveys show that every year only 10 percent of cigarette [#permalink]

### Show Tags

30 Jun 2007, 09:37
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 1 sessions

### HideShow timer Statistics

Surveys show that every year only 10 percent of cigarette smokers switch brands. Yet the manufacturers have been spending an amount equal to 10 percent of their gross receipts on cigarette promotion in magazines. It follows from these figures that inducing cigarette smokers to switch brands did not pay, and that cigarette companies would have been no worse off economically if they had dropped their advertising.

Of the following, the best criticism of the conclusion that inducing cigarette smokers to switch brands did not pay is that the conclusion is based on
(A) computing advertising costs as a percentage of gross receipts, not of overall costs
(B) past patterns of smoking and may not carry over to the future
(C) the assumption that each smoker is loyal to a single brand of cigarettes at any one time
(D) the assumption that each manufacturer produces only one brand of cigarettes
(E) figures for the cigarette industry as a whole and may not hold for a particular company

Caught b/w C and E...please give reasons for ur POE
Senior Manager
Joined: 28 Feb 2007
Posts: 306
Followers: 1

Kudos [?]: 40 [0], given: 0

### Show Tags

30 Jun 2007, 10:01
it is C for me.

The given argument relies on C.
what if each smoker smokes more than 1 brand of ciggarettes. and one of this brands is a company's. then every company should keep spending at least to hold its customers.Here promotion may be one of the incentives to make smoker chose this company's brand and not switch to other brand.
Director
Joined: 14 Jan 2007
Posts: 777
Followers: 2

Kudos [?]: 129 [0], given: 0

### Show Tags

30 Jun 2007, 10:23
I am thinking between C and D . Though D looks right in first glance, yet the argument does not rely on this.
C is the best. The answer is lying in the question - What if smokers are smoking brands from different companies.
Director
Joined: 29 Jul 2006
Posts: 874
Followers: 3

Kudos [?]: 86 [0], given: 0

### Show Tags

01 Jul 2007, 11:34
VP
Joined: 03 Apr 2007
Posts: 1366
Followers: 4

Kudos [?]: 542 [0], given: 10

Re: CR - cigarette smokers [#permalink]

### Show Tags

01 Jul 2007, 12:05
conclusion : inducing cigarette smokers to switch brands did not pay
The conclusion is based on the assumption -----

I have observed a pattern for CRs: If two answers are close both are incorrect. In this CR , C and D are close -as in making assumption about "brands" and "manufacturers.

According my POE, I would eliminate C and D.
Among A,B and E.

A- doesnot matter how you allocate the budget for advertising.Not be a reason for the best criticism.
B-cannot be an valid assumption. If the companies believed it was not possible to change consumer habits why would they advertise?

E wins.
Re: CR - cigarette smokers   [#permalink] 01 Jul 2007, 12:05
Similar topics Replies Last post
Similar
Topics:
Surveys show that every year only 10 percent of cigarette 3 18 Jan 2010, 07:37
Surveys show that every year only 10 percent of cigarette 7 24 Jul 2008, 10:04
90 Surveys show that every year only 10 percent of cigarette 36 15 Jul 2008, 09:20
Surveys show that every year only 10 percent of cigarette 7 12 Jul 2007, 11:31
Surveys show that every year only 10 percent of cigarette 6 02 Jan 2007, 12:01
Display posts from previous: Sort by