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Surveys show that every year only 10 percent of cigarette

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Senior Manager
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Surveys show that every year only 10 percent of cigarette [#permalink] New post 18 Jan 2010, 06:37
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E

Difficulty:

  5% (low)

Question Stats:

60% (02:54) correct 40% (03:52) wrong based on 5 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. 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.
19. 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
20. Which of the following, if true, most seriously weakens the conclusion that cigarette companies could have dropped advertising without suffering economically?
(A) Cigarette advertisements provide a major proportion of total advertising revenue for numerous magazines.
(B) Cigarette promotion serves to attract first-time smokers to replace those people who have stopped smoking.
(C) There exists no research conclusively demonstrating that increases in cigarette advertising are related to increases in smoking.
(D) Advertising is so firmly established as a major business activity of cigarette manufacturers that they would be unlikely to drop it.
(E) Brand loyalty is typically not very strong among those who smoke inexpensive cigarettes.
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Re: Surveys show that every year only 10 percent [#permalink] New post 18 Feb 2010, 12:14
19. E
Found this from another website:
Argument says that spending 10% of gross receipts is not worth because only 10% change brands.
What if all the/or nearly 10% who changed brands changed to Brand X. It very well payed off for Brand X.
All the other choices can be eliminated based on this reasoning.

20. IMO B
Which of the following, if true, most seriously weakens the conclusion that cigarette companies could have dropped advertising without suffering economically?
(A) Cigarette advertisements provide a major proportion of total advertising revenue for numerous magazines.> irrelevant to cigarette companies
(B) Cigarette promotion serves to attract first-time smokers to replace those people who have stopped smoking. > weaken CORRECT
(C) There exists no research conclusively demonstrating that increases in cigarette advertising are related to increases in smoking. does not weaken, does not strenghen either
(D) Advertising is so firmly established as a major business activity of cigarette manufacturers that they would be unlikely to drop it. irrelevant
(E) Brand loyalty is typically not very strong among those who smoke inexpensive cigarettes.irrelevant
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Re: Surveys show that every year only 10 percent [#permalink] New post 26 Feb 2010, 20:33
SudiptoGmat wrote:
20. Which of the following, if true, most seriously weakens the conclusion that cigarette companies could have dropped advertising without suffering economically?
(A) Cigarette advertisements provide a major proportion of total advertising revenue for numerous magazines.
(B) Cigarette promotion serves to attract first-time smokers to replace those people who have stopped smoking.
(C) There exists no research conclusively demonstrating that increases in cigarette advertising are related to increases in smoking.
(D) Advertising is so firmly established as a major business activity of cigarette manufacturers that they would be unlikely to drop it.
(E) Brand loyalty is typically not very strong among those who smoke inexpensive cigarettes.


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Senior Manager
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Re: Surveys show that every year only 10 percent [#permalink] New post 27 Feb 2010, 04:22
arnaudl wrote:
19. E
Found this from another website:
Argument says that spending 10% of gross receipts is not worth because only 10% change brands.
What if all the/or nearly 10% who changed brands changed to Brand X. It very well payed off for Brand X.
All the other choices can be eliminated based on this reasoning.

20. IMO B
Which of the following, if true, most seriously weakens the conclusion that cigarette companies could have dropped advertising without suffering economically?
(A) Cigarette advertisements provide a major proportion of total advertising revenue for numerous magazines.> irrelevant to cigarette companies
(B) Cigarette promotion serves to attract first-time smokers to replace those people who have stopped smoking. > weaken CORRECT
(C) There exists no research conclusively demonstrating that increases in cigarette advertising are related to increases in smoking. does not weaken, does not strenghen either
(D) Advertising is so firmly established as a major business activity of cigarette manufacturers that they would be unlikely to drop it. irrelevant
(E) Brand loyalty is typically not very strong among those who smoke inexpensive cigarettes.irrelevant


OA EB.
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Cheers,
SD

Re: Surveys show that every year only 10 percent   [#permalink] 27 Feb 2010, 04:22
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