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To attract some customers from its competitors

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To attract some customers from its competitors [#permalink] New post 07 Jul 2013, 00:05
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To attract some customers from its competitors, a certain carpet cleaning company plans to reduce its prices on carpet and upholstery cleaning. The company’s manager believes that if their services are cheaper than those of their competitors many people will use services of their company instead of its business rivals’.

Which of the following statements, if true, most undermines the manager’s reasoning?
(A)Many people are not willing to pay to have their carpets professionally cleaned.
(B)Current fees of the company are already lower than those of its business rivals.
(C)People who are already loyal customers of the company have never used the services of other carpet cleaning companies.
(D)More people hire carpet cleaning companies to take care of their houses now than two years ago.
(E)For many customers, price is not the major criterion for selecting a carpet cleaning company.
[Reveal] Spoiler: OA

Last edited by guerrero25 on 07 Jul 2013, 00:45, edited 1 time in total.
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Re: To attract some customers from its competitors [#permalink] New post 07 Jul 2013, 00:43
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To attract some customers from its competitors, a certain carpet cleaning company plans to reduce its prices on carpet and upholstery cleaning. The company’s manager believes that if their services are cheaper than those of their competitors many people will use services of their company instead of its business rivals’.

Which of the following statements, if true, most undermines the manager’s reasoning?
(A)Many people are not willing to pay to have their carpets professionally cleaned.
-Ok Many people are not willing to pay to have their carpets professionally cleaned but what about those who are willing to pay. No info. Incorrect
(B)Current fees of the company are already lower than those of its business rivals
- If prices are already below its rivals' prices n still the company is still struggling , how can the company get new customers with further price reduction. Correct
(C)People who are already loyal customers of the company have never used the services of other carpet cleaning companies.
- Ok,few customers are loyal but what about other customers who are not loyal. Will they come coz of price reduction? No info. Incorrect
(D)More people hire carpet cleaning companies to take care of their houses now than two years ago. OFS. Incorrect
(E)For many customers, price is not the major criterion for selecting a carpet cleaning company.
- Price is not a MAJOR criterion but still it's a factor that will play a role in selecting services. But we don't extent of impact of new prices. Incorrect
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Re: To attract some customers from its competitors [#permalink] New post 07 Jul 2013, 00:50
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To attract some customers from its competitors, a certain carpet cleaning company plans to reduce its prices on carpet and upholstery cleaning. The company’s manager believes that if their services are cheaper than those of their competitors many people will use services of their company instead of its business rivals’.

Which of the following statements, if true, most undermines the manager’s reasoning?
(A)Many people are not willing to pay to have their carpets professionally cleaned.
Even if this is true, the plan could still attract new customers
(B)Current fees of the company are already lower than those of its business rivals.
IMO CORRECT, "if their services are cheaper than those of their competitors" a reduction would not help the company.
(C)People who are already loyal customers of the company have never used the services of other carpet cleaning companies.
Since we want NEW customers, this info about the loyal ones does not help us.
(D)More people hire carpet cleaning companies to take care of their houses now than two years ago.
Irrelevant to the conclusion.
(E)For many customers, price is not the major criterion for selecting a carpet cleaning company.
Even in this is true, a low price could still attract SOME new customers.
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Re: To attract some customers from its competitors [#permalink] New post 07 Jul 2013, 01:55
guerrero25 wrote:
To attract some customers from its competitors, a certain carpet cleaning company plans to reduce its prices on carpet and upholstery cleaning. The company’s manager believes that if their services are cheaper than those of their competitors many people will use services of their company instead of its business rivals’.

Which of the following statements, if true, most undermines the manager’s reasoning?
(A)Many people are not willing to pay to have their carpets professionally cleaned.
(B)Current fees of the company are already lower than those of its business rivals.
(C)People who are already loyal customers of the company have never used the services of other carpet cleaning companies.
(D)More people hire carpet cleaning companies to take care of their houses now than two years ago.
(E)For many customers, price is not the major criterion for selecting a carpet cleaning company.



IMO B...

CONCLUSION clearly says: company’s manager believes that if their services are cheaper than those of their competitors many people will use services of their company instead of its business rivals’.===>so manager is solely thinking that if price from competetor are low then it will defenetely going to attaract more customers.

option B:Current fees of the company are already lower than those of its business rivals.==>THIS is undermining the conclusion that low price will not effect anything.

(A)Many people are not willing to pay to have their carpets professionally cleaned.===>we are not concerned about the people who are not using this service..hence this misses the context
(B)Current fees of the company are already lower than those of its business rivals.===>correct
(C)People who are already loyal customers of the company have never used the services of other carpet cleaning companies.===>doesn't say anything about new customers....hence misses the point
(D)More people hire carpet cleaning companies to take care of their houses now than two years ago.===>again doesnt say anything whether lowering price will attract the customers or not.
(E)For many customers, price is not the major criterion for selecting a carpet cleaning company.====>it may be not the major criteria...but it might affect somehow....but how much is going to affect we dont know.hence incorrect.
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Re: To attract some customers from its competitors [#permalink] New post 19 Aug 2013, 23:13
Yes i like to use the techniques you told. I want to ask some question about that techniques you told. Do you have used these techniques by yourself or not
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Re: To attract some customers from its competitors [#permalink] New post 19 Aug 2013, 23:16
Yes most of the people believe in low cost services. The carpet company providing low cost cleaning facility is prefered by most of the people. So those companies that provide low rate are good in business
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Re: To attract some customers from its competitors [#permalink] New post 19 Aug 2013, 23:22
Many of the companies have low rate prices and they do good work to facilitate their client in short time. People use facilities of trusted companies.
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Re: To attract some customers from its competitors [#permalink] New post 19 Aug 2013, 23:25
Yes you are right that many of the people do not focus on the price in hiring carpet cleaning company. But it is true that more than 70% people focus on the price that carpet company is offering
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Re: To attract some customers from its competitors [#permalink] New post 19 Aug 2013, 23:27
Thanks for providing such useful information. i agree with you on this issue. I hope you will keep on providing such useful information in the upcoming days.
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Re: To attract some customers from its competitors [#permalink] New post 19 Aug 2013, 23:33
I read your post and i am of the view that some people want to give chance to other companies too. People hire other companies because of the offers they are providing. That's why competition between different companies goes on and people use these opportunities. We are providing such a cheap and quick services. If you want to have our offer then you can get it
Re: To attract some customers from its competitors   [#permalink] 19 Aug 2013, 23:33
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