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

It is currently 20 Aug 2014, 04:46

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

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

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
avatar
Joined: 31 May 2006
Posts: 381
Location: Phoenix AZ
Followers: 1

Kudos [?]: 5 [0], given: 0

GMAT Tests User
The value of a product is determined by the ratio of its [#permalink] New post 25 Jul 2006, 19:31
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
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.
Senior Manager
Senior Manager
avatar
Joined: 09 Aug 2005
Posts: 286
Followers: 1

Kudos [?]: 1 [0], given: 0

GMAT Tests User
Re: CR --- Product Quality [#permalink] New post 25 Jul 2006, 19:39
mailtheguru 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.



A - Ok no support tough
B-out of scope
C -weakens
D - Weakens
E-correct - perceived quality has to be same as actual quality otherwise consumers will have a different standard of measure.
SVP
SVP
avatar
Joined: 30 Mar 2006
Posts: 1741
Followers: 1

Kudos [?]: 25 [0], given: 0

GMAT Tests User
 [#permalink] New post 25 Jul 2006, 20:33
Will go with E.

A and E are the only valid ones.

But A doesnot support the conclusion as strongly as E does.

The passage mentions that increasing the quality will help improve the competitive position.
Given the fact that consumers percieve the quality of a product based on the actual quality, improving the quality will help.
Intern
Intern
avatar
Joined: 18 Apr 2006
Posts: 37
Followers: 0

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

 [#permalink] New post 25 Jul 2006, 21:36
I will go with A.

if the quality or price can be changed without affecting the competitive position, then the consumer will be more likely to buy the product.
Director
Director
avatar
Joined: 13 Nov 2003
Posts: 801
Location: BULGARIA
Followers: 1

Kudos [?]: 19 [0], given: 0

GMAT Tests User
 [#permalink] New post 26 Jul 2006, 00:05
IMO A is correct.
If it is posible to increase both the price and the quality of the product without changing its competitive position, then if we have change in one of the parameters then the competitive position will be changed.
So A
Director
Director
avatar
Joined: 26 Sep 2005
Posts: 587
Location: Munich,Germany
Followers: 1

Kudos [?]: 7 [0], given: 0

GMAT Tests User
Re: CR --- Product Quality [#permalink] New post 26 Jul 2006, 04:57
mailtheguru 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.


You could increase the value of a prodict by either lowering the price or increasing quality. A talks about increasing both- it could still add value but perhaps not enough for consumers to buy it at the increased price.

However, if you increase the quality of a product which is in line with the consumers perception (while keeping the price unchanged or at a lower price) then it is bound to add value. therefore, choose E. Hope I'm on the right track here. :(
VP
VP
User avatar
Joined: 14 May 2006
Posts: 1419
Followers: 4

Kudos [?]: 41 [0], given: 0

GMAT Tests User
 [#permalink] New post 26 Jul 2006, 08:01
IMHO, A is incorrect, because the statement may or may not be true....

first of all... how do you judge the quality and increase it by the same amount as price, so ratio stays the same?

second, if you increase the quality and price, then statement may or may not be true, meaning that you would have to increase the quality and price by the same amount so that ratio of value itself doesn't change... as it is stated in A

on the only issue from this seems like... how do you judge the quality, which is answered in E

(B) certain segments... don't need to read further... we care about all consumers
(C) again same as B
(D) completely out of scope

hope this helps and makes sense
Director
Director
User avatar
Joined: 06 May 2006
Posts: 783
Followers: 3

Kudos [?]: 14 [0], given: 0

GMAT Tests User
 [#permalink] New post 26 Jul 2006, 08:41
E by PoE. Between A and E, A seems to be a side-effect, rather than a supporting argument.

However, I did not exactly like the choice E either... IMHO it does not exactly support the conclusion - however, it is the choice that has the least reasons to be eliminated thru PoE...
VP
VP
avatar
Joined: 15 Jul 2004
Posts: 1474
Schools: Wharton (R2 - submitted); HBS (R2 - submitted); IIMA (admitted for 1 year PGPX)
Followers: 15

Kudos [?]: 94 [0], given: 13

GMAT Tests User
Re: CR --- Product Quality [#permalink] New post 26 Jul 2006, 09:02
IMHO, E is right because, if, as E states, the consumers' perceptions is indeed basedon the actual quality of the product, then the consumers would be able to perceive the increased Value (as a result of increasing quality as stated in the stem) quite easily and convincingly - in other words, the customers will be easily able to see the effects of increasing the Value of the product..
Director
Director
avatar
Joined: 17 Jul 2006
Posts: 716
Followers: 1

Kudos [?]: 8 [0], given: 0

GMAT Tests User
 [#permalink] New post 26 Jul 2006, 09:56
By Using POE, I see E is the better answer.

A seems to be not adding value based on ratio factor
B talks about some portion of group
C weakens
D out of topic
Intern
Intern
avatar
Joined: 28 Mar 2005
Posts: 32
Location: India
Followers: 0

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

 [#permalink] New post 26 Jul 2006, 11:43
Hmmm....I seem to disagree with the analysis of points B and C mentioned by u2lover:
----
(B) certain segments... don't need to read further... we care about all consumers
(C) again same as B
(D) completely out of scope
----
If you read further, it is "different segments of the population of consumers" - so here we are in fact talking about the consumer population only...


I do not know whether i am on thinking on the same lines as you guys, but consider this explanation:

I choose C.
Since "Competing products.....try to appeal to different segments of the population of consumers" may suggest that the product would come under 2 sections of consumers....
- one type who would be willing to pay any price for high quality (1st part of argument satisfied) say for e.g. the rich ppl
- and one type who would be interested in lower prices of the product not caring about the quality as such. (2nd part of argument satisfied) say for e.g. the poor ppl...

Thus, in both the cases Higher quality and Lower prices makes the consumer select the product by making the product a hit in different segments.

What say guys?? Is it correct reasoning...or am I missing some point here???
_________________

"Life is like a highway..Enjoyment depends on the lane you drive."

VP
VP
User avatar
Joined: 14 May 2006
Posts: 1419
Followers: 4

Kudos [?]: 41 [0], given: 0

GMAT Tests User
 [#permalink] New post 26 Jul 2006, 12:03
jitu_ch wrote:
Hmmm....I seem to disagree with the analysis of points B and C mentioned by u2lover:
----
(B) certain segments... don't need to read further... we care about all consumers
(C) again same as B
(D) completely out of scope
----
If you read further, it is "different segments of the population of consumers" - so here we are in fact talking about the consumer population only...


I do not know whether i am on thinking on the same lines as you guys, but consider this explanation:

I choose C.
Since "Competing products.....try to appeal to different segments of the population of consumers" may suggest that the product would come under 2 sections of consumers....
- one type who would be willing to pay any price for high quality (1st part of argument satisfied) say for e.g. the rich ppl
- and one type who would be interested in lower prices of the product not caring about the quality as such. (2nd part of argument satisfied) say for e.g. the poor ppl...

Thus, in both the cases Higher quality and Lower prices makes the consumer select the product by making the product a hit in different segments.

What say guys?? Is it correct reasoning...or am I missing some point here???


you may disagree all you want with me... this is why we have discussions :wink:

to your point and my reasoning why C is out of scope you must understand what is the boundary of the argument... which is we are talking about ALL consumers... any given one has got to fit into this category...

now, you are saying some segments do X, others prefer Y... RED FLAG... we are talking about all of them as a whole, we can't separate them on our own, because the argument never said we could!!! #1 mistake on CR is assuming something new or bring new info about the argument... unless the question asks you to do so (strengthen/weaken) you should never use your knowledge or add. info

I am not trying to attack, just have a strong comprehension why C is wrong. hope this helps you

suggestions/questions welcome
Senior Manager
Senior Manager
avatar
Joined: 07 Mar 2006
Posts: 352
Followers: 1

Kudos [?]: 9 [0], given: 1

GMAT Tests User
 [#permalink] New post 26 Jul 2006, 21:45
E, as rightly mentioned by Jaynayak.
Manager
Manager
User avatar
Joined: 27 Jan 2006
Posts: 157
Location: Europe
Followers: 1

Kudos [?]: 2 [0], given: 0

GMAT Tests User
 [#permalink] New post 26 Jul 2006, 21:49
one more E here..
_________________

Stay hungry, Stay foolish

Manager
Manager
avatar
Joined: 15 Nov 2005
Posts: 246
Location: Italy
Followers: 2

Kudos [?]: 7 [0], given: 0

GMAT Tests User
 [#permalink] New post 27 Jul 2006, 01:33
I agree with E I do not like it much but is the best pick
_________________

“If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability.â€

Manager
Manager
avatar
Joined: 12 Jun 2006
Posts: 69
Location: Hyderabad, India
Followers: 1

Kudos [?]: 2 [0], given: 0

 [#permalink] New post 27 Jul 2006, 02:11
Iam also for E.
_________________

Hema

Senior Manager
Senior Manager
avatar
Joined: 31 May 2006
Posts: 381
Location: Phoenix AZ
Followers: 1

Kudos [?]: 5 [0], given: 0

GMAT Tests User
 [#permalink] New post 27 Jul 2006, 07:16
OA is E.

I think old_dream_1976's explanation makes a lot of sense. The theoritical quality of a product need not match the perception of the customers. Making it explicit strengthens the argument.
Manager
Manager
avatar
Joined: 29 Sep 2006
Posts: 96
Followers: 1

Kudos [?]: 2 [0], given: 0

CR Question [#permalink] New post 10 Oct 2006, 08:58
Seven countries signed a treaty binding each of them to perform specified actions on a certain fixed date, with the actions of each conditional on simultaneous action taken by the other countries. Each country was also to notify the six other countries when it had completed its action.
The simultaneous-action provision of the treaty leaves open the possibility that
(A) the compliance date was subject to postponement, according to the terms of the treaty
(B) one of the countries might not be required to make any changes or take any steps in order to comply with the treaty, whereas all the other countries are so required
(C) each country might have a well-founded excuse, based on the provision, for its own lack of compliance
(D) the treaty specified that the signal for one of the countries to initiate action was notification by the other countries that they had completed action
(E) there was ambiguity with respect to the date after which all actions contemplated in the treaty are to be complete
Director
Director
avatar
Joined: 18 Jul 2006
Posts: 532
Followers: 1

Kudos [?]: 23 [0], given: 0

GMAT Tests User
 [#permalink] New post 10 Oct 2006, 09:43
C...?
VP
VP
User avatar
Joined: 25 Jun 2006
Posts: 1176
Followers: 2

Kudos [?]: 36 [0], given: 0

GMAT Tests User
 [#permalink] New post 11 Oct 2006, 17:29
E by POE
  [#permalink] 11 Oct 2006, 17:29
    Similar topics Author Replies Last post
Similar
Topics:
The value of a product is determined by the ratio of its reply2spg 18 24 Jan 2009, 11:24
The value of a product is determined by the ratio of its Amit05 6 03 Jul 2007, 12:22
The value of a product is determined by the ratio of its foolz_rulz 16 18 Jun 2006, 20:20
The value of a product is determined by the ratio of its nakib77 5 17 Dec 2005, 11:41
The value of a product is determined by the ratio of its rahulraao 6 18 Sep 2005, 16:49
Display posts from previous: Sort by

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

  Question banks Downloads My Bookmarks Reviews Important topics  

Go to page    1   2    Next  [ 26 posts ] 



GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.