The value of a product is determined by the ratio of its : GMAT Critical Reasoning (CR)
Check GMAT Club App Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 02 Dec 2016, 12:07

### 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

# The value of a product is determined by the ratio of its

Author Message
TAGS:

### Hide Tags

SVP
Joined: 28 May 2005
Posts: 1723
Location: Dhaka
Followers: 7

Kudos [?]: 320 [0], given: 0

The value of a product is determined by the ratio of its [#permalink]

### Show Tags

17 Dec 2005, 11:41
00:00

Difficulty:

(N/A)

Question Stats:

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

### HideShow timer Statistics

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) Consumersâ€™ perceptions of the quality of a product are based on the actual quality of the product.
_________________

hey ya......

If you have any questions
New!
VP
Joined: 06 Jun 2004
Posts: 1059
Location: CA
Followers: 2

Kudos [?]: 141 [0], given: 0

### Show Tags

17 Dec 2005, 12:06
The higher the ratio of Q/P = higher value = consumer will select that product

(A) It is possible to increase both the quality and the price of a product without changing its competitive position. ==> If price increased more than the quality, the value will be lower and consumer will not select the product

(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands. ==> out of scope

(C) Competing products often try to appeal to different segments of the population of consumers. ==> Out of scope

(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty. ==> Weaken the argument because the equation is either Q increase or P decrease

(E) Consumersâ€™ perceptions of the quality of a product are based on the actual quality of the product. ==> Correct! If actual Q increases and consumers agree with the increase, consumers will likely select that product
Senior Manager
Joined: 03 Nov 2005
Posts: 395
Location: Chicago, IL
Followers: 3

Kudos [?]: 48 [0], given: 17

### Show Tags

17 Dec 2005, 21:10
E.

Key assumptions:

No other factors rathen than value of the product affect likelihood that consumers will choose company's product over its competitors'.

Products' value correspons to the actual quality.

D undermines the key assumption

A,B,C don't affect the argument

E fill in the key assumption
_________________

Hard work is the main determinant of success

Director
Joined: 09 Jul 2005
Posts: 595
Followers: 2

Kudos [?]: 56 [0], given: 0

### Show Tags

18 Dec 2005, 06:47
All except E are aout of scope. E must be the answer.
SVP
Joined: 28 May 2005
Posts: 1723
Location: Dhaka
Followers: 7

Kudos [?]: 320 [0], given: 0

### Show Tags

19 Dec 2005, 03:32
OA is E.
_________________

hey ya......

SVP
Joined: 16 Oct 2003
Posts: 1810
Followers: 4

Kudos [?]: 132 [0], given: 0

### Show Tags

19 Dec 2005, 08:53
Got E as well.
Similar topics Replies Last post
Similar
Topics:
1 The value of a product is determined by the ratio of its 5 23 Jul 2010, 11:20
1 The value of a product is determined by the ratio of its 17 19 Jan 2010, 08:27
The value of a product is determined by the ratio of its 18 24 Jan 2009, 11:24
The value of a product is determined by the ratio of its 6 03 Jul 2007, 12:22
The value of a product is determined by the ratio of its 13 04 Apr 2007, 15:35
Display posts from previous: Sort by