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Director
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The value of a product is determined by the ratio of its [#permalink]
 08 Jun 2004, 01:35
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0% (00:00) correct
 0% (00:00) wrong based on 0 sessions
18. 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.
Please explain your answer if possible.
OA will follow.
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Senior Manager
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I guess E is the answer.
The author assumes that consumers are capable of differentiating between, shall we say, products' various qualities; such savvy will obviously make them choose better-quality products. Therefore, if consumers base their perception of quality on the actual quality of products, increasing the quality of a product will increase the likelihood that consumers will select that product over a competing one.
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GMAT Club Legend
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yes ob, clearly E
_________________
Best Regards,
Paul
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SVP
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Some one among those who posted before me is going to score 750+
(E) should be it. ( it is the assumption )
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Senior Manager
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(E) it is.
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SVP
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With no scrolling down my final answer is E.
Also anandnk, please reflect your thoughts about folks answering after you. This is a logical reasoning section. You want us to infer something.
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Manager
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Another vote for E!
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Director
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OA is E
Thanks for your explanations
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