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

It is currently 16 Sep 2014, 02:10

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

V 06 #23

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Intern
Intern
avatar
Joined: 29 May 2010
Posts: 7
Followers: 0

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

V 06 #23 [#permalink] New post 29 Sep 2010, 18:57
A negative review of a popular restaurant claimed that the wait staff was rude and the food was overpriced. This review caused sales to drop precipitously which, in turn, forced the original owners to sell the business. The new owners revised the menu and dismissed most of the wait staff. After three months, however, sales had improved by less than 1%.

Which of the following, if true, forms the best basis for at least a partial explanation of why sales at the restaurant have not improved?

The new owners could not determine who were the rudest members of the wait staff.
New menu items offered by the new owners are now more affordable.
The new owners neglected to advertise the fact that the restaurant is now under new management.
The new owners began managing the restaurant during the summer, when sales are unusually high.
Another restaurant with similarly-priced menu items opened across the street.

Can anyone explain why A and E also cannot be options giving 'partial explanation' to the paradox ?
The stimulus says The new owners dismissed most of the wait staff. So some of the rude ones (one of the reasons why sales dropped in the first instance) may have been left behind and causing the same issues? So why not A?
Another restaurant with a menu with similar prices is close by, so since the sales gets distributed, hence the sales of this restaurant 'have not improved' ?

The OA is
[Reveal] Spoiler:
C
which is also a possibility, but why not A and E ?



Thank you
1 KUDOS received
Senior Manager
Senior Manager
User avatar
Status: Time to step up the tempo
Joined: 24 Jun 2010
Posts: 410
Location: Milky way
Schools: ISB, Tepper - CMU, Chicago Booth, LSB
Followers: 7

Kudos [?]: 117 [1] , given: 50

Re: V 06 #23 [#permalink] New post 29 Sep 2010, 20:02
1
This post received
KUDOS
hitmis wrote:
A negative review of a popular restaurant claimed that the wait staff was rude and the food was overpriced. This review caused sales to drop precipitously which, in turn, forced the original owners to sell the business. The new owners revised the menu and dismissed most of the wait staff. After three months, however, sales had improved by less than 1%.

Which of the following, if true, forms the best basis for at least a partial explanation of why sales at the restaurant have not improved?

The new owners could not determine who were the rudest members of the wait staff.
New menu items offered by the new owners are now more affordable.
The new owners neglected to advertise the fact that the restaurant is now under new management.
The new owners began managing the restaurant during the summer, when sales are unusually high.
Another restaurant with similarly-priced menu items opened across the street.

Can anyone explain why A and E also cannot be options giving 'partial explanation' to the paradox ?
The stimulus says The new owners dismissed most of the wait staff. So some of the rude ones (one of the reasons why sales dropped in the first instance) may have been left behind and causing the same issues? So why not A?
Another restaurant with a menu with similar prices is close by, so since the sales gets distributed, hence the sales of this restaurant 'have not improved' ?

The OA is
[Reveal] Spoiler:
C
which is also a possibility, but why not A and E ?



Thank you


Answer is straightforward C.

Option A - invalid since the new customers of the restaurant do not have the knowledge of the rude customers and old customers because of their bad experience are not going to turn up. Net result is the change in the restaurant does not reach the market.

Option E is invalid since only the price is discussed and not the quality of the menu items. Option C offers a stronger reason for the paradox and hence it wins.
_________________

:good Support GMAT Club by putting a GMAT Club badge on your blog :thanks

Intern
Intern
avatar
Joined: 29 May 2010
Posts: 7
Followers: 0

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

Re: V 06 #23 [#permalink] New post 29 Sep 2010, 21:49
Thanks C does make sense since the other two take care of either food prices or rude staff but not both.
Intern
Intern
avatar
Status: Time to work on the applications
Joined: 18 Nov 2010
Posts: 5
Location: United States (IL)
GMAT 1: 720 Q50 V36
Followers: 0

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

Re: V 06 #23 [#permalink] New post 18 Nov 2010, 15:13
I do not agree with C because "New management" doesn't necessarily mean lower prices or a different wait staff. What do you think?
Re: V 06 #23   [#permalink] 18 Nov 2010, 15:13
    Similar topics Author Replies Last post
Similar
Topics:
1 Experts publish their posts in the topic OLD - V06-23 Bunuel 2 29 Aug 2014, 04:44
Experts publish their posts in the topic OLD - V06-06 Bunuel 1 29 Aug 2014, 04:43
Experts publish their posts in the topic OLD - M23-06 Bunuel 1 29 Aug 2014, 04:37
Experts publish their posts in the topic OLD - M06-23 Bunuel 1 29 Aug 2014, 04:28
v06#23 plakhani 5 18 Nov 2010, 15:07
Display posts from previous: Sort by

V 06 #23

  Question banks Downloads My Bookmarks Reviews Important topics  

Moderators: Bunuel, WoundedTiger



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®.