answer D
The plan involves two actions:
1. Increasing production of the hybrid model.
2. Enhancing marketing efforts for this vehicle.
The question asks which statement suggests that this plan will not increase sales.
Evaluating the options:
• (A) AutoMart has sold every hybrid car it has produced, but its market share in the hybrid car segment has decreased over the last year.
• This suggests AutoMart is selling all the cars it produces. A decrease in market share might simply mean competitors are producing and selling even more cars, but this does not directly show that increasing production and marketing won’t work. This doesn’t rule out growth potential for AutoMart if demand exists, so this is not the strongest support for rejecting the plan.
• (B) The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year.
• A decrease in inventory might indicate that AutoMart is already efficiently selling what it produces. However, this does not prove that increasing production and marketing will fail. Irrelevant.
• (C) AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer.
• This could suggest a branding issue, but it does not directly imply that the plan to increase production and marketing will fail. Irrelevant.
• (D) Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year.
• This is a strong counterargument to the plan. If even a price reduction (a strong sales incentive) failed to increase sales, it suggests that demand for AutoMart’s hybrid cars may be saturated or declining. In this case, increasing production and marketing would likely not boost sales.
• (E) AutoMart’s hybrid model is one of three brands that have accounted for the majority of the increase in hybrid car sales over the last year.
• This suggests success in the hybrid segment and does not challenge the effectiveness of increasing production and marketing. Irrelevant.
Why D is correct:
If sales have declined despite a price reduction, it indicates that the issue is likely insufficient demand, and therefore, increasing production and marketing would not help. D most directly challenges the assumption that the plan will lead to increased sales.
Bunuel
12 Days of Christmas 2024 - 2025 Competition with $40,000 of PrizesProduction of hybrid cars has seen significant growth over the last year. To capitalize on this trend, AutoMart plans to increase the production of its hybrid model while also enhancing its marketing efforts for this vehicle.
Which of the following, if true, provides the most support for the view that AutoMart cannot increase its sales of hybrid cars by adopting the plan outlined above?
(A) AutoMart has sold every hybrid car it has produced, but its market share in the hybrid car segment has decreased over the last year.
(B) The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year.
(C) AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer.
(D) Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year.
(E) AutoMart’s hybrid model is one of three brands that have accounted for the majority of the increase in hybrid car sales over the last year.