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D)If AutoMart has already lowered prices—a key driver of demand—and still experienced declining sales, this suggests that neither increasing production nor enhancing marketing will solve the problem. The decline in sales points to a more fundamental issue, such as insufficient demand or market saturation.
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Answer is option D
As despite reducing the price along with the statement of the statement, company was unable to increase the sales if it tries to lower the price again, it won’t be able to increase sale as per it IT.
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Answer is D. If there was decline in sales despite reducing the price, marketing and more production cannot increase the sales this year.

Option A talks about the decrease of market share. But according to the plan, AutoMart can still increase the sales
Option B is ambiguous because of the word slightly.
Option C says that marketing is required.
Option E supports the plan.
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(A) Market share may get affected due to new players in the market but AutoMart can still increase the sale. - Incorrect.
(B) This does not directly address whether sales will increase or not. - Incorrect.
(C) This some how tells that sales may get increase due to enhanced marketing efforts. - Incorrect.
(D) After reducing the price also if sales are not increasing then new production units may not achieve desired goal even though marketing is enhanced as demand itself appears to be weak or low. - Correct.
(E) Again this option may lead to increase of sales. - Incorrect.
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Marketing strategy won’t lead increase in sales if customers don’t recognise the auto mart car. Option C
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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 Prizes

Production 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.

 


This question was provided by GMAT Club
for the 12 Days of Christmas Competition

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in this question option b is the best option as it is what is supported by the passage others are not relevent to the passage
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Another instance which emphasises the need the read the question statement fully and carefully.

We have to support the statement that Automart cannot increase the sales
in other words show that Automarts Plan will not likely result in increase in sales.

A. going in other direction. says they sell every car
B. irrelevant
C. irrelevant, if anything is going in reverse direction
D. yes, this casts a fair doubt that sales will not increase
E. irr, or goes in reverse dir
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answer is option D
Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year.
...Despite past efforts to reduce price (which is a type of marketing strategy) the sales have declined hence inc production and marketing might not improve sales
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(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.
  • If AutoMart is already selling all the hybrid cars it produces, increasing production may not lead to increased sales unless demand also increases.
  • The decline in market share suggests that competitors may be capturing more of the market, which calls into question the effectiveness of simply increasing production or marketing.
  • This option strongly supports the idea that the plan may not lead to increased sales.
    (This is a strong contender.)
[hr]
(B)The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year.
  • A decrease in inventory suggests that hybrid cars are being sold efficiently, but it does not indicate whether increasing production or marketing will result in increased sales.
  • This information does not directly support the view that the plan will fail.
    (This is not a strong contender.)
[hr]
(C)AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer.
  • This statement highlights a potential marketing issue: consumers do not associate the hybrid car brand with AutoMart.
  • While this suggests that AutoMart’s marketing could be better targeted, it does not directly undermine the strategy of increasing production and enhancing marketing.
    (This is not a strong contender.)
[hr]
(D)Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year.
  • This indicates that lowering prices—a strategy aimed at increasing sales—did not work. It suggests that there might be a deeper issue, such as low demand or increased competition.
  • This strongly supports the idea that simply increasing production or marketing may not result in higher sales.
    (This is a strong contender.)
[hr]
(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 that AutoMart's hybrid cars are contributing significantly to the growth in the hybrid car market.
  • This does not support the view that AutoMart's strategy will fail; rather, it suggests success in the market.
    (This is not a strong contender.)
[hr]
Comparison of (A) and (D):
  • (A) focuses on market share and indicates that despite selling all its cars, AutoMart's competitive position is weakening.
  • (D) provides evidence of declining sales even with a price reduction, directly undermining the idea that increasing production or marketing would lead to higher sales.
(D) is stronger because it directly addresses declining sales, which is a clear indicator that the outlined plan might not work.

Bunuel
12 Days of Christmas 2024 - 2025 Competition with $40,000 of Prizes

Production 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.

 


This question was provided by GMAT Club
for the 12 Days of Christmas Competition

Win $40,000 in prizes: Courses, Tests & more

 

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A. If AutoMart has sold every car it produced, increasing production could allow sales to grow. However, the decreasing market share suggests that competitors are growing faster, potentially limiting AutoMart’s ability to increase sales even with this plan. This option weakly undermines the plan but does not fully explain why the outlined actions won’t succeed. Incorrect

B. A decrease in inventory could indicate strong demand, meaning that AutoMart’s plan to increase production might be effective. This does not undermine the plan and is irrelevant to the argument. Incorrect

C. So what? As long as brand is recognized it doesn't matter much whether consumers know the manufacturer - at least in this context, it doesn't undermine the plan. Incorrect

D. A decline in sales despite price reductions indicates that factors other than price or production are limiting sales—such as market saturation or waning consumer interest. If lower prices have failed, increasing production and marketing are unlikely to succeed. This option strongly undermines the view that AutoMart’s plan will lead to increased sales. Correct

E. If AutoMart is a key player in the growing hybrid market, this suggests potential for further growth. This option supports the idea that increasing production and marketing could be effective. Thus, this does not undermine the plan. Incorrect

Answer D.
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D

Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year.
This usually happens because the quality of the Automart hybrid cars are not very great, So even after decreasing the price they were not able to secure any sales,

So even if they produce more cars or even if they market the cars more, as the quality still stays low, The outlined plan wont be effective, which means they wont see any increase in sales with this plan.
Bunuel
12 Days of Christmas 2024 - 2025 Competition with $40,000 of Prizes

Production 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.

 


This question was provided by GMAT Club
for the 12 Days of Christmas Competition

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Option A is irrelevant as decrease in market share is not related to the success of its marketing plan

Option B strenthens the argument as inventory is decreasing.Its marketing plan has bee sucess to some extent
Option C address the weakness as it matketing plan may not work as prople are not aware of yhe manufacturer whicj might affect its marketing activity effectiveness. Is the correct answer
Option D The argument is related to marketing not price

Option Ethe argument is not related to performance of its hybrid brand
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Production 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.
We are NOT concerned with market share but are concerned with increase in sales of hybrid cars. It may be possible to increase sales of hybrid cars by increasing their production and enhancing marketing efforts for this vehicle
Incorrect

(B) The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year.
The demand for AutoMart hybrid cars might have gone down but it may be possible to increase sales of hybrid cars by increasing their production and enhancing marketing efforts for this vehicle
Incorrect

(C) AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer.
The argument is NOT concerned with awareness of consumers that AutoMart is the manufacturer
Incorrect

(D) Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year.
It may be possible that sales of hybrid cars will decline despite of increasing their production and enhancing marketing efforts for this vehicle since reducing the price of its hybrid cars could not increase sales of these vehicles
Correct

(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.
Since 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, it may be possible to increase sales of hybrid cars by increasing their production and enhancing marketing efforts for this vehicle
Incorrect

IMO D
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The answer for this question would be D because the question is concerned about why the sales for AutoMart would decrease.

Production 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.

Option A says that it had sold the hybrid cars but we are looking for an option that would talk about the decline in sales and not decreased market share of AutoMart

Option B has the word slightly - we need an option that would be the most seriously weakening the sales of AutoMart

Option C again points out to few

Option D most seriously weakens the argument as on top of reducing the prices of the cars, its sales have declined

Option E - is strengthening the argument which cannot be the answer
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Option D
(D) "Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year."

This statement directly addresses the concern that AutoMart might not be able to increase its sales even if it increases production and marketing efforts. The decline in sales despite a price reduction suggests that there might be underlying issues affecting demand for AutoMart's hybrid cars, making the plan to increase production and marketing potentially ineffective.



Elimination reasons for rest:

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 statement indicates that AutoMart is successfully selling its cars, but the decline in market share could be due to increased competition or market shifts, not necessarily a problem with production or marketing efforts. It doesn’t directly address whether increasing production and marketing would solve these issues or not.

B) "The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year."

This statement suggests inventory control is being managed effectively, but it doesn’t directly relate to whether increasing production and marketing efforts will increase sales. It focuses more on supply logistics rather than addressing potential demand issues.

C) "AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer."

While brand recognition is important, this doesn’t directly indicate whether AutoMart’s efforts to boost sales through increased production and marketing will succeed. It points more to an awareness issue rather than addressing the effectiveness of the production plan.

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 that AutoMart is part of a growing market, but it does not address whether AutoMart can increase its sales specifically by adopting the proposed plan. It implies success in the broader market but doesn’t directly relate to the specific effectiveness of increasing production and marketing for AutoMart.
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Bunuel
12 Days of Christmas 2024 - 2025 Competition with $40,000 of Prizes

Production 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.

 


This question was provided by GMAT Club
for the 12 Days of Christmas Competition

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The answer is clearly D.
It shows that the sales are declining even after using techniques like reducing price. Increasing inventory won't help with sales thus not helping gain profit.
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