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

 It is currently 12 Feb 2016, 10:29

# EXPECTING SOON:

Interview Invitations from Tuck  |  Join Chat Room for Live Updates

### 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:
VP
Joined: 26 Apr 2004
Posts: 1218
Location: Taiwan
Followers: 2

Kudos [?]: 324 [0], given: 0

Surveys show that every year only 10 percent of cigarette [#permalink]  13 May 2004, 07:53
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
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. If 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)past patterns of smoking and may not carry over to the future
(B)figures for the cigarette industry as a whole and may not hold for a
particular company

the answer is B, but I would like to know why not A, thank you.
Manager
Joined: 07 May 2004
Posts: 183
Location: Ukraine, Russia(part-time)
Followers: 2

Kudos [?]: 11 [0], given: 0

chunjuwu wrote:
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. If 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)past patterns of smoking and may not carry over to the future
(B)figures for the cigarette industry as a whole and may not hold for a
particular company

the answer is B, but I would like to know why not A, thank you.

Because switching did not PAY, no connection to future events here!
VP
Joined: 26 Apr 2004
Posts: 1218
Location: Taiwan
Followers: 2

Kudos [?]: 324 [0], given: 0

Excuse me,

You mean that Choice A is wrong because it involves the idea "future" that doesn't show in the above passage?
Why I cannot say that the patterns of smoking may change in the future as the criticism?

Could you speak more clear? Thank you.
Manager
Joined: 07 May 2004
Posts: 183
Location: Ukraine, Russia(part-time)
Followers: 2

Kudos [?]: 11 [0], given: 0

chunjuwu wrote:
Excuse me,

You mean that Choice A is wrong because it involves the idea "future" that doesn't show in the above passage?
Why I cannot say that the patterns of smoking may change in the future as the criticism?

Could you speak more clear? Thank you.

The argument that consumers will change their tastes in the future is really weak when it comes to explanation of the reasons for not changing their tastes in the past. I think it is really much like an out-of-scope answer.

The reference to the future events does not say anything about "why consumers didn't change their preferences in the PAST?". OUT-OF-SCOPE.
SVP
Joined: 30 Oct 2003
Posts: 1794
Location: NewJersey USA
Followers: 5

Kudos [?]: 58 [0], given: 0

Let me hop in here.

Assume 100000 people smoke and there are 5 companies A,B,C,D,E making cigarettes. If A holds 90% of the market share and 10% is shared equally by B,C,D,E then they each serve 2500 people.
But they are trying to get hold of 10000 (10% of 100000 ) people by spending $250 ( assumng 1 person smokes once and it costs$1 per cigarette)
What they are spending is very little comapred to what they potentially can get.
I forgot to add one more thng. The argument is probably right about company A spending its 10% revenue on advertising. But this is not applicable to B,C,Dand E because they have a lot of ground to cover.

This is what B is saying.
VP
Joined: 26 Apr 2004
Posts: 1218
Location: Taiwan
Followers: 2

Kudos [?]: 324 [0], given: 0

Thank you, anandnk

You mean that in your case it is not worthwhile for company A to spend lots of money on attracting new but few consumers.

But for company B,C,D, it is worthwhile to spend little because their revenue have been low. That is, each company has its condition. Right?

Then, do you think that choice A is out of scope?
SVP
Joined: 30 Oct 2003
Posts: 1794
Location: NewJersey USA
Followers: 5

Kudos [?]: 58 [0], given: 0

I am not sure if A is out of scope because the survey always indicates something about the past or till date unless the survey asks what people are going to do in future.

I just feel B is better than A because of its narrow scope.
Similar topics Replies Last post
Similar
Topics:
While fifteen years ago, only 20 percent of girls between the ages of 1 27 Jul 2015, 07:48
5 A survey by the National Council of Churches showed that in 9 07 May 2011, 00:35
No only smoking cigarettes but also cigar smoking has been 11 10 Nov 2010, 23:30
Scientists have suggested that once every 10 million years 4 22 Feb 2010, 09:39
4 A survey by the National Council of Churches showed that in 10 13 Aug 2007, 14:16
Display posts from previous: Sort by