It is currently 17 Dec 2017, 23:20

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.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

After several years of declining product sales, the online

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

3 KUDOS received
SVP
SVP
User avatar
S
Joined: 14 Apr 2009
Posts: 2145

Kudos [?]: 1664 [3], given: 8

Location: New York, NY
After several years of declining product sales, the online [#permalink]

Show Tags

New post 14 Jun 2013, 13:24
3
This post received
KUDOS
12
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  75% (hard)

Question Stats:

57% (02:04) correct 43% (01:57) wrong based on 412 sessions

HideShow timer Statistics

After several years of declining product sales, the online nutrition site NutriShake revamped its marketing strategy. Before this change, NutriShake was focused on search engine optimization strategies to boost its rankings in search results on a big interet search engine. The new marketing strategy attempted to penetrate further into customers' referral networks by making use of Pay-per-Click ads on a business social network. After the marketing strategy shift, revenue from product sales increased.

In assessing whether the improvement in product sales can properly be attributed to the marketing strategy change, it would be most helpful to find out which of the following?.

(A) What proportion of the total revenue of NutriShake is generated by product sales?

(B) Has the number of unique visitors to the NutriShake online site increased substantially in the last two years?

(C) Among all the types of social networks that provide an opportunity for Nutrishake to advertise, which type accounts for the largest proportion of the nutrition company's product sales?

(D) Do any marketing partners of NutriShake have a standing order with the NutriShake for a fixed amount of advertising per month?

(E) Among the social networks that NutriShake is implementing its marketing strategy, are there more types of business social networks or more types of entertainment social networks?
[Reveal] Spoiler: OA

Kudos [?]: 1664 [3], given: 8

2 KUDOS received
Verbal Forum Moderator
User avatar
Joined: 15 Jun 2012
Posts: 1124

Kudos [?]: 3613 [2], given: 123

Location: United States
Premium Member
Re: Declining Product Sales [#permalink]

Show Tags

New post 15 Jun 2013, 01:01
2
This post received
KUDOS
IMO, B is correct.

ANALYZE THE STIMULUS:

Fact: product sales declined several years. ==> NutriShake changed the marketing strategy
Fact: Old Strategy: focus on search engine optimization ==> Purpose: customers will purchase products DIRECTLY on Nutrishake website after they use searching tools
Fact: New Strategy: focus on referral networks, such as business social network ==> Purpose: customers will purchase products INDIRECTLY via intermediate websites
Fact: Product sales increased
Conclusion: The marketing strategy change (new strategy) improved product sales

In order to evaluate this conclusion, we need to determine whether the number of customers who go directly to Nutrishake website increased? if the number increased ==> the search engine optimization strategy might help boost the product sales.

ANALYZE EACH ANSWER:

(A) What proportion of the total revenue of NutriShake is generated by product sales?
Wrong. We only compare old marketing strategy with new marketing strategy

(B) Has the number of unique visitors to the NutriShake online site increased substantially in the last two years?
Correct. As stated above.

(C) Among all the types of social networks that provide an opportunity for Nutrishake to advertise, which type accounts for the largest proportion of the nutrition company's product sales?
Wrong. Out of scope. We don't talk about which type of account.

(D) Do any marketing partners of NutriShake have a standing order with the NutriShake for a fixed amount of advertising per month?
Wrong. Out of scope. We just compare two strategies of Nutrishake (after vs before). Nothing about partners.

(E) Among the social networks that NutriShake is implementing its marketing strategy, are there more types of business social networks or more types of entertainment social networks?
Wrong. Out of scope. We don't talk about more types of business social networks

Hope it helps.
_________________

Please +1 KUDO if my post helps. Thank you.

"Designing cars consumes you; it has a hold on your spirit which is incredibly powerful. It's not something you can do part time, you have do it with all your heart and soul or you're going to get it wrong."

Chris Bangle - Former BMW Chief of Design.

Kudos [?]: 3613 [2], given: 123

VP
VP
User avatar
Status: Far, far away!
Joined: 02 Sep 2012
Posts: 1121

Kudos [?]: 2408 [0], given: 219

Location: Italy
Concentration: Finance, Entrepreneurship
GPA: 3.8
GMAT ToolKit User
Re: Declining Product Sales [#permalink]

Show Tags

New post 15 Jun 2013, 01:10
pqhai wrote:
IMO, B is correct.

ANALYZE THE STIMULUS:

Fact: product sales declined several years. ==> NutriShake changed the marketing strategy
Fact: Old Strategy: focus on search engine optimization ==> Purpose: customers will purchase products DIRECTLY on Nutrishake website after they use searching tools
Fact: New Strategy: focus on referral networks, such as business social network ==> Purpose: customers will purchase products INDIRECTLY via intermediate websites
Fact: Product sales increased
Conclusion: The marketing strategy change (new strategy) improved product sales



How can you infer so much pqhai?

We are not able to connect the first strategy to the direct purchase of the product from the site; and the second strategy to the indirect purchase.

The text does not say anything about this difference, hence we cannot "make it up". The passage does not take into consideration the difference direct/indirect purchase, it does not mention it at all: both strategies could be based or not on it (we cannot say).
_________________

It is beyond a doubt that all our knowledge that begins with experience.

Kant , Critique of Pure Reason

Tips and tricks: Inequalities , Mixture | Review: MGMAT workshop
Strategy: SmartGMAT v1.0 | Questions: Verbal challenge SC I-II- CR New SC set out !! , My Quant

Rules for Posting in the Verbal Forum - Rules for Posting in the Quant Forum[/size][/color][/b]

Kudos [?]: 2408 [0], given: 219

Manager
Manager
User avatar
Joined: 10 Apr 2013
Posts: 123

Kudos [?]: 37 [0], given: 17

Re: Declining Product Sales [#permalink]

Show Tags

New post 15 Jun 2013, 04:15
It should be E.

Adopting a "two way approach",

1. In case answer to E option is Yes, then the improvement in product sales can properly be attributed to the marketing strategy change
2. In case answer to E option is No, then the improvement in product sales cannot properly be attributed to the marketing strategy change

Kudos [?]: 37 [0], given: 17

1 KUDOS received
Manager
Manager
avatar
Joined: 04 Apr 2013
Posts: 149

Kudos [?]: 58 [1], given: 36

Re: Declining Product Sales [#permalink]

Show Tags

New post 15 Jun 2013, 04:18
1
This post received
KUDOS
how can we assume last 2 years? Please clarify

May be marketing shift happened only 1 month ago. Previous 1 year 11 months nutrishake was on old strategy.

Say for example on old marketing strategy: - Number of new visitors from Jan 2008- Jan 2010 is around 10000
Number of new visitors from Feb 2010 - Jan 2012 is around 19000.

Now on new marketing strategy, new visitors from Jan 2012 - Feb 2012 is just 100.

As B reads, new visitors increased in last 2 years and that is true but may not because of new marketing strategy.
_________________

Maadhu

MGMAT1 - 540 ( Trying to improve )

Kudos [?]: 58 [1], given: 36

1 KUDOS received
VP
VP
User avatar
Status: Far, far away!
Joined: 02 Sep 2012
Posts: 1121

Kudos [?]: 2408 [1], given: 219

Location: Italy
Concentration: Finance, Entrepreneurship
GPA: 3.8
GMAT ToolKit User
Re: Declining Product Sales [#permalink]

Show Tags

New post 15 Jun 2013, 04:22
1
This post received
KUDOS
maaadhu wrote:
how can we assume last 2 years? Please clarify

May be marketing shift happened only 1 month ago. Previous 1 year 11 months nutrishake was on old strategy.

Say for example on old marketing strategy: - Number of new visitors from Jan 2008- Jan 2010 is around 10000
Number of new visitors from Feb 2010 - Jan 2012 is around 19000.

Now on new marketing strategy, new visitors from Jan 2012 - Feb 2012 is just 100.

As B reads, new visitors increased in last 2 years and that is true but may not because of new marketing strategy.


I completely agree with you maaadhu.

(B) Has the number of unique visitors to the NutriShake online site increased substantially in the last two years?

The text has no time reference at all.

I would not eliminate D so easily

(D) Do any marketing partners of NutriShake have a standing order with the NutriShake for a fixed amount of advertising per month?

If someone else is advertising NutriShake, then we cannot be sure that the new strategy is responsable for the increase.
As a matter of fact, this partner could have done a better job lately as far as we know, and HIS campain could be responsable for the increase.
_________________

It is beyond a doubt that all our knowledge that begins with experience.

Kant , Critique of Pure Reason

Tips and tricks: Inequalities , Mixture | Review: MGMAT workshop
Strategy: SmartGMAT v1.0 | Questions: Verbal challenge SC I-II- CR New SC set out !! , My Quant

Rules for Posting in the Verbal Forum - Rules for Posting in the Quant Forum[/size][/color][/b]

Kudos [?]: 2408 [1], given: 219

Board of Directors
User avatar
G
Joined: 01 Sep 2010
Posts: 3432

Kudos [?]: 9545 [0], given: 1203

Re: Declining Product Sales [#permalink]

Show Tags

New post 15 Jun 2013, 08:37
Zarrolou wrote:
maaadhu wrote:
how can we assume last 2 years? Please clarify

May be marketing shift happened only 1 month ago. Previous 1 year 11 months nutrishake was on old strategy.

Say for example on old marketing strategy: - Number of new visitors from Jan 2008- Jan 2010 is around 10000
Number of new visitors from Feb 2010 - Jan 2012 is around 19000.

Now on new marketing strategy, new visitors from Jan 2012 - Feb 2012 is just 100.

As B reads, new visitors increased in last 2 years and that is true but may not because of new marketing strategy.


I completely agree with you maaadhu.

(B) Has the number of unique visitors to the NutriShake online site increased substantially in the last two years?

The text has no time reference at all.

I would not eliminate D so easily

(D) Do any marketing partners of NutriShake have a standing order with the NutriShake for a fixed amount of advertising per month?

If someone else is advertising NutriShake, then we cannot be sure that the new strategy is responsable for the increase.
As a matter of fact, this partner could have done a better job lately as far as we know, and HIS campain could be responsable for the increase.


But we care about of custormers on social networks (this is the strategy) : have single customer partner (or a few or a million, we do not know for sure) for a fixed amount doesn't help to evaluate if the strategy achives its goal or not.

Moreover, the reference time is not a disciminant in an absolute value because is reasonable to infer that from the previous one and this strategy a certain time-frame is passed......
_________________

COLLECTION OF QUESTIONS AND RESOURCES
Quant: 1. ALL GMATPrep questions Quant/Verbal 2. Bunuel Signature Collection - The Next Generation 3. Bunuel Signature Collection ALL-IN-ONE WITH SOLUTIONS 4. Veritas Prep Blog PDF Version 5. MGMAT Study Hall Thursdays with Ron Quant Videos
Verbal:1. Verbal question bank and directories by Carcass 2. MGMAT Study Hall Thursdays with Ron Verbal Videos 3. Critical Reasoning_Oldy but goldy question banks 4. Sentence Correction_Oldy but goldy question banks 5. Reading-comprehension_Oldy but goldy question banks

Kudos [?]: 9545 [0], given: 1203

Verbal Forum Moderator
User avatar
Joined: 15 Jun 2012
Posts: 1124

Kudos [?]: 3613 [0], given: 123

Location: United States
Premium Member
Re: Declining Product Sales [#permalink]

Show Tags

New post 15 Jun 2013, 09:54
Zarrolou wrote:
pqhai wrote:
IMO, B is correct.

ANALYZE THE STIMULUS:

Fact: product sales declined several years. ==> NutriShake changed the marketing strategy
Fact: Old Strategy: focus on search engine optimization ==> Purpose: customers will purchase products DIRECTLY on Nutrishake website after they use searching tools
Fact: New Strategy: focus on referral networks, such as business social network ==> Purpose: customers will purchase products INDIRECTLY via intermediate websites
Fact: Product sales increased
Conclusion: The marketing strategy change (new strategy) improved product sales



How can you infer so much pqhai?

We are not able to connect the first strategy to the direct purchase of the product from the site; and the second strategy to the indirect purchase.

The text does not say anything about this difference, hence we cannot "make it up". The passage does not take into consideration the difference direct/indirect purchase, it does not mention it at all: both strategies could be based or not on it (we cannot say).


Hi Zarrolou

Thank you for asking. That's a great question.

Fist of all, my reasoning is: this is the online store ==> Technically, there are two ways of doing this kind of business (1) You sell directly to customers through your website (2) You sell through intermediate website / agent.

Amazon, for example, has a lot of other companies who are selling their products on Amazon's website. The prices on Amazon are almost identical to the prices on the sellers' own website. If you were a customers, should you buy products on Amazon or go to seller's website? I think "pay-as-click" on Amazon is more convenient and saves your time.

So I think the two strategies are different, and they cannot be interchangeable. Anyway, that's just my own opinion.

Last but not least, I love this question so much cause I have a similar business. I never want my customers to buy products on Amazon or Ebay. :) cause I cannot increase prices, but still have to pay commission for those websites.
_________________

Please +1 KUDO if my post helps. Thank you.

"Designing cars consumes you; it has a hold on your spirit which is incredibly powerful. It's not something you can do part time, you have do it with all your heart and soul or you're going to get it wrong."

Chris Bangle - Former BMW Chief of Design.

Kudos [?]: 3613 [0], given: 123

VP
VP
User avatar
Status: Far, far away!
Joined: 02 Sep 2012
Posts: 1121

Kudos [?]: 2408 [0], given: 219

Location: Italy
Concentration: Finance, Entrepreneurship
GPA: 3.8
GMAT ToolKit User
Re: Declining Product Sales [#permalink]

Show Tags

New post 15 Jun 2013, 09:59
pqhai wrote:
Hi Zarrolou

Thank you for asking. That's a great question.

Fist of all, my reasoning is: this is the online store ==> Technically, there are two ways of doing this kind of business (1) You sell directly to customers through your website (2) You sell through intermediate website / agent.

Amazon, for example, has a lot of other companies who are selling their products on Amazon's website. The prices on Amazon are almost identical to the prices on the sellers' own website. If you were a customers, should you buy products on Amazon or go to seller's website? I think "pay-as-click" on Amazon is more convenient and saves your time.

So I think the two strategies are different, and they cannot be interchangeable. Anyway, that's just my own opinion.

Last but not least, I love this question so much cause I have a similar business. I never want my customers to buy products on Amazon or Ebay. :) cause I cannot increase prices, but still have to pay commission for those websites.


That's not what pay per click means pquai. I did run a website so I know what I am talking about.

Pay-per-click means that you pay for every consumer that clicks on your ad, and then is redirected to your website, so the purchase will take place on YOUR website anyway.
The old method is called also pay-per-View, and you pay for everytime your ad is displayed, redardless of weather a consumer clicks it or not.

And then last but not least, do you think that a GMAT question should be based on this knowledge?
_________________

It is beyond a doubt that all our knowledge that begins with experience.

Kant , Critique of Pure Reason

Tips and tricks: Inequalities , Mixture | Review: MGMAT workshop
Strategy: SmartGMAT v1.0 | Questions: Verbal challenge SC I-II- CR New SC set out !! , My Quant

Rules for Posting in the Verbal Forum - Rules for Posting in the Quant Forum[/size][/color][/b]

Kudos [?]: 2408 [0], given: 219

Verbal Forum Moderator
User avatar
Joined: 15 Jun 2012
Posts: 1124

Kudos [?]: 3613 [0], given: 123

Location: United States
Premium Member
Re: Declining Product Sales [#permalink]

Show Tags

New post 15 Jun 2013, 10:17
Zarrolou wrote:
pqhai wrote:
Hi Zarrolou

Thank you for asking. That's a great question.

Fist of all, my reasoning is: this is the online store ==> Technically, there are two ways of doing this kind of business (1) You sell directly to customers through your website (2) You sell through intermediate website / agent.

Amazon, for example, has a lot of other companies who are selling their products on Amazon's website. The prices on Amazon are almost identical to the prices on the sellers' own website. If you were a customers, should you buy products on Amazon or go to seller's website? I think "pay-as-click" on Amazon is more convenient and saves your time.

So I think the two strategies are different, and they cannot be interchangeable. Anyway, that's just my own opinion.

Last but not least, I love this question so much cause I have a similar business. I never want my customers to buy products on Amazon or Ebay. :) cause I cannot increase prices, but still have to pay commission for those websites.


That's not what pay per click means pquai. I did run a website so I know what I am talking about.

Pay-per-click means that you pay for every consumer that clicks on your ad, and then is redirected to your website, so the purchase will take place on YOUR website anyway.
The old method is called also pay-per-View, and you pay for everytime your ad is displayed, redardless of weather a consumer clicks it or not.

And then last but not least, do you think that a GMAT question should be based on this knowledge?


Zarrolou.

Wow, you're such an e-commerce expert. My knowledge about E-commerce is too small to explain clearly. However, I just feel B is closer to the right answer, so I chose it.

As you know, I don't think GMAT will test specific knowledge such as e-business, science, .... Gmat never asks us to understand what terminologies are. Gmat also advises not to use our own knowledge into the test. The logic is more important.

Best regards.
_________________

Please +1 KUDO if my post helps. Thank you.

"Designing cars consumes you; it has a hold on your spirit which is incredibly powerful. It's not something you can do part time, you have do it with all your heart and soul or you're going to get it wrong."

Chris Bangle - Former BMW Chief of Design.

Kudos [?]: 3613 [0], given: 123

Intern
Intern
avatar
Status: RusTinPeace
Joined: 11 Aug 2012
Posts: 35

Kudos [?]: 6 [0], given: 43

WE: Sales (Commercial Banking)
Re: Declining Product Sales [#permalink]

Show Tags

New post 15 Jun 2013, 10:58
Zarrolou wrote:
pqhai wrote:
Hi Zarrolou

Thank you for asking. That's a great question.

Fist of all, my reasoning is: this is the online store ==> Technically, there are two ways of doing this kind of business (1) You sell directly to customers through your website (2) You sell through intermediate website / agent.

Amazon, for example, has a lot of other companies who are selling their products on Amazon's website. The prices on Amazon are almost identical to the prices on the sellers' own website. If you were a customers, should you buy products on Amazon or go to seller's website? I think "pay-as-click" on Amazon is more convenient and saves your time.

So I think the two strategies are different, and they cannot be interchangeable. Anyway, that's just my own opinion.

Last but not least, I love this question so much cause I have a similar business. I never want my customers to buy products on Amazon or Ebay. :) cause I cannot increase prices, but still have to pay commission for those websites.


That's not what pay per click means pquai. I did run a website so I know what I am talking about.

Pay-per-click means that you pay for every consumer that clicks on your ad, and then is redirected to your website, so the purchase will take place on YOUR website anyway.
The old method is called also pay-per-View, and you pay for everytime your ad is displayed, redardless of weather a consumer clicks it or not.

And then last but not least, do you think that a GMAT question should be based on this knowledge?



@Zarrolou Exactly my point.
@GmatPill Could somebody please explain the Official Version. ??

Kudos [?]: 6 [0], given: 43

Board of Directors
User avatar
G
Joined: 01 Sep 2010
Posts: 3432

Kudos [?]: 9545 [0], given: 1203

Re: Declining Product Sales [#permalink]

Show Tags

New post 15 Jun 2013, 11:26
pqhai wrote:
Zarrolou wrote:
pqhai wrote:
Hi Zarrolou

Thank you for asking. That's a great question.

Fist of all, my reasoning is: this is the online store ==> Technically, there are two ways of doing this kind of business (1) You sell directly to customers through your website (2) You sell through intermediate website / agent.

Amazon, for example, has a lot of other companies who are selling their products on Amazon's website. The prices on Amazon are almost identical to the prices on the sellers' own website. If you were a customers, should you buy products on Amazon or go to seller's website? I think "pay-as-click" on Amazon is more convenient and saves your time.

So I think the two strategies are different, and they cannot be interchangeable. Anyway, that's just my own opinion.

Last but not least, I love this question so much cause I have a similar business. I never want my customers to buy products on Amazon or Ebay. :) cause I cannot increase prices, but still have to pay commission for those websites.


That's not what pay per click means pquai. I did run a website so I know what I am talking about.

Pay-per-click means that you pay for every consumer that clicks on your ad, and then is redirected to your website, so the purchase will take place on YOUR website anyway.
The old method is called also pay-per-View, and you pay for everytime your ad is displayed, redardless of weather a consumer clicks it or not.

And then last but not least, do you think that a GMAT question should be based on this knowledge?




Wow, you're such an e-commerce expert. My knowledge about E-commerce is too small to explain clearly. However, I just feel B is closer to the right answer, so I chose it.

As you know, I don't think GMAT will test specific knowledge such as e-business, science, .... Gmat never asks us to understand what terminologies are. Gmat also advises not to use our own knowledge into the test. The logic is more important.

Best regards.



Is not completely true, ther are rare cases when you can eliminate 1 or two answer choices based on you knowledge, in conjunction with what is stated in the stimulus or in the passage.

Especially in RC with tough passage in natural science or medicine this is true. Simply because the passages that you may encounter during the exam are excerpts from realialble sources in that field. So you can pick the right answer thanks to you knowledge.

So that statement is not true in an absolute sense. Just to point out.

But basically you must rely only on the given information
_________________

COLLECTION OF QUESTIONS AND RESOURCES
Quant: 1. ALL GMATPrep questions Quant/Verbal 2. Bunuel Signature Collection - The Next Generation 3. Bunuel Signature Collection ALL-IN-ONE WITH SOLUTIONS 4. Veritas Prep Blog PDF Version 5. MGMAT Study Hall Thursdays with Ron Quant Videos
Verbal:1. Verbal question bank and directories by Carcass 2. MGMAT Study Hall Thursdays with Ron Verbal Videos 3. Critical Reasoning_Oldy but goldy question banks 4. Sentence Correction_Oldy but goldy question banks 5. Reading-comprehension_Oldy but goldy question banks

Kudos [?]: 9545 [0], given: 1203

Manager
Manager
avatar
Joined: 22 Dec 2012
Posts: 114

Kudos [?]: 20 [0], given: 57

Re: Declining Product Sales [#permalink]

Show Tags

New post 19 Jun 2013, 21:57
(A) What proportion of the total revenue of NutriShake is generated by product sales? - Irrelevant, the argument talks about strategy

(B) Has the number of unique visitors to the NutriShake online site increased substantially in the last two years? - Relevant to the new model. If this number is not very high, then the new strategy might fall flat on its face.

(C) Among all the types of social networks that provide an opportunity for Nutrishake to advertise, which type accounts for the largest proportion of the nutrition company's product sales? - Talks about social networks. This is out of scope. We are interested in business social networks.

(D) Do any marketing partners of NutriShake have a standing order with the NutriShake for a fixed amount of advertising per month? - This focusses on marketing partners instead of the effect of advertising strategy on the consumers of this product.

(E) Among the social networks that NutriShake is implementing its marketing strategy, are there more types of business social networks or more types of entertainment social networks? - Out of scope.

Kudos [?]: 20 [0], given: 57

SVP
SVP
User avatar
S
Joined: 14 Apr 2009
Posts: 2145

Kudos [?]: 1664 [0], given: 8

Location: New York, NY
Re: Declining Product Sales [#permalink]

Show Tags

New post 20 Jun 2013, 09:55
Quote:
@Zarrolou Exactly my point.
@GmatPill Could somebody please explain the Official Version. ??


Reference original question: http://www.gmatpill.com/gmat-practice-t ... stion/2577

So you should recognize this as a "BEFORE/AFTER" CR example. We call this Framework #1 - in which you have a scenario and then you introduce a variable and wonder whether that variable is responsible for a certain result.

In this case, we have a company operating as usual. Then they introduce a new variable - a marketing strategy change. And they experience a different result: increased sales.

The question they wonder about is: "Is the marketing strategy responsible for that increase in sales?"

In other words, which of the following would be most helpful to know in assessing whether marketing strategy was responsible for increase in sales?

Well, it would be most helpful to know what COULD have increased sales --- BESIDES the marketing strategy.

Alternatively, it would also be helpful to know if there was anything supremely unique about this marketing strategy that would demand that we assign the sole responsibility of the increased sales to the marketing strategy.

So in terms of prethinking - you need to ask yourself these 2 questions before looking at the answer choices.

1. Was there something super special about the marketing strategy?
2. Did nothing else change? Did everything else stay the same?

Look for keywords: DECREASE / INCREASE / SAME

Image
Image

Kudos [?]: 1664 [0], given: 8

1 KUDOS received
SVP
SVP
User avatar
S
Joined: 14 Apr 2009
Posts: 2145

Kudos [?]: 1664 [1], given: 8

Location: New York, NY
Re: Declining Product Sales [#permalink]

Show Tags

New post 20 Jun 2013, 10:00
1
This post received
KUDOS
So as we go through the answer choices, we see that (B) suggests another metric that MAY have changed. Note the keyword: INCREASE

(B) "Has the number of unique visitors to the NutriShake online siteINCREASED substantially in the last two years?"

Also note that no other answer choice has this keyword "INCREASED"

So in assessing whether the marketing strategy was solely responsible for the increased in sales, it would be help to know whether the # of unique visitors changed.

Common sense tell us that if the # of unique visitors changed, that MAY have affected sales---in which case the marketing strategy may not have been solely responsible for the increase in sales.

If # of unique visitors did NOT change, then it would add to our confidence that the marketing strategy was responsible for the increase in sales.

Image
Image
Image

Kudos [?]: 1664 [1], given: 8

Non-Human User
User avatar
Joined: 01 Oct 2013
Posts: 10222

Kudos [?]: 277 [0], given: 0

Premium Member
Re: After several years of declining product sales, the online [#permalink]

Show Tags

New post 18 Jul 2014, 19:12
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

Kudos [?]: 277 [0], given: 0

Senior Manager
Senior Manager
User avatar
B
Joined: 01 Nov 2013
Posts: 340

Kudos [?]: 239 [0], given: 403

GMAT 1: 690 Q45 V39
WE: General Management (Energy and Utilities)
Reviews Badge
Re: After several years of declining product sales, the online [#permalink]

Show Tags

New post 14 Mar 2015, 07:28
GMATPill wrote:
After several years of declining product sales, the online nutrition site NutriShake revamped its marketing strategy. Before this change, NutriShake was focused on search engine optimization strategies to boost its rankings in search results on a big interet search engine. The new marketing strategy attempted to penetrate further into customers' referral networks by making use of Pay-per-Click ads on a business social network. After the marketing strategy shift, revenue from product sales increased.

In assessing whether the improvement in product sales can properly be attributed to the marketing strategy change, it would be most helpful to find out which of the following?.

(A) What proportion of the total revenue of NutriShake is generated by product sales?

(B) Has the number of unique visitors to the NutriShake online site increased substantially in the last two years?

(C) Among all the types of social networks that provide an opportunity for Nutrishake to advertise, which type accounts for the largest proportion of the nutrition company's product sales?

(D) Do any marketing partners of NutriShake have a standing order with the NutriShake for a fixed amount of advertising per month?

(E) Among the social networks that NutriShake is implementing its marketing strategy, are there more types of business social networks or more types of entertainment social networks?


Pre-thinking

Assumption- The product sales increased due to addition of new customers!!!!

The new marketing strategy was to look for new customers because the new marketing strategy was all about finding new customers by penetrating further into customers' referral networks


(A) What proportion of the total revenue of NutriShake is generated by product sales?

Who knows? This is irrelevant to the discussion.The proportion may be 10 % or 99 % . All we are interested in why/how did the product sales increased???

(B) Has the number of unique visitors to the NutriShake online site increased substantially in the last two years?

Yes; That is what the whole new marketing strategy was all about. If the answer to the above question is NO ,then it is highly doubtful that the marketing strategy was responsible for the increase in the product sales. If the answer to the above question is YES,then it is highly likely that the strategy was responsible for the increase in the product sales.


(C) Among all the types of social networks that provide an opportunity for Nutrishake to advertise, which type accounts for the largest proportion of the nutrition company's product sales?

Irrelevant ; Ok even if we know which social network accounts for the largest proportion of product sales then how do we know that the marketing strategy worked or not? All the answer to the above question will tell is that a particular network accounts for high sales but not why ???

(D) Do any marketing partners of NutriShake have a standing order with the NutriShake for a fixed amount of advertising per month?

Irrelevant option; We have no information how many advertisements are required to generate sales.

(E) Among the social networks that NutriShake is implementing its marketing strategy, are there more types of business social networks or more types of entertainment social networks?

We are only interested in business social networks. The question has already been answered in the argument.

So , B it is !!!!

Kudos please...

:-D :-D :-D :-D :-D :-D :-D
_________________

Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time.

I hated every minute of training, but I said, 'Don't quit. Suffer now and live the rest of your life as a champion.-Mohammad Ali

Kudos [?]: 239 [0], given: 403

Director
Director
User avatar
Joined: 07 Aug 2011
Posts: 579

Kudos [?]: 574 [0], given: 75

Concentration: International Business, Technology
GMAT 1: 630 Q49 V27
GMAT ToolKit User
After several years of declining product sales, the online [#permalink]

Show Tags

New post 27 Mar 2015, 00:03
GMATPill wrote:
After several years of declining product sales, the online nutrition site NutriShake revamped its marketing strategy. Before this change, NutriShake was focused on search engine optimization strategies to boost its rankings in search results on a big interet search engine. The new marketing strategy attempted to penetrate further into customers' referral networks by making use of Pay-per-Click ads on a business social network. After the marketing strategy shift, revenue from product sales increased.

In assessing whether the improvement in product sales can properly be attributed to the marketing strategy change, it would be most helpful to find out which of the following?.

(A) What proportion of the total revenue of NutriShake is generated by product sales?

(B) Has the number of unique visitors to the NutriShake online site increased substantially in the last two years?

(C) Among all the types of social networks that provide an opportunity for Nutrishake to advertise, which type accounts for the largest proportion of the nutrition company's product sales?

(D) Do any marketing partners of NutriShake have a standing order with the NutriShake for a fixed amount of advertising per month?

(E) Among the social networks that NutriShake is implementing its marketing strategy, are there more types of business social networks or more types of entertainment social networks?



i am totally set backed with my CR understanding in general and i do not think i need to further work on my foundations as i am able to crack those questions in which answer choices have no ambiguity.
i would have never chosen B even after studying full time with a critical reasoning trainer or any online course.
As for this question i see option E as the best choice . i did not choose B, which is very strong candidate, because of highlighted reason ..
(B) Has the number of unique visitors to the NutriShake online site increased substantially in thelast two years?
as usual my reasoning for rejecting B is , is new marketing strategy implemented 2years back ? it maybe implemented 1year back or maybe just 6month back . who knows that , atleast the passage does speaks about 2year.
_________________

Thanks,
Lucky

_______________________________________________________
Kindly press the Image to appreciate my post !! :-)

Kudos [?]: 574 [0], given: 75

Non-Human User
User avatar
Joined: 01 Oct 2013
Posts: 10222

Kudos [?]: 277 [0], given: 0

Premium Member
Re: After several years of declining product sales, the online [#permalink]

Show Tags

New post 28 Mar 2016, 11:15
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

Kudos [?]: 277 [0], given: 0

VP
VP
avatar
G
Joined: 12 Dec 2016
Posts: 1395

Kudos [?]: 53 [0], given: 1506

Location: United States
GMAT 1: 700 Q49 V33
GPA: 3.64
GMAT ToolKit User Premium Member
Re: After several years of declining product sales, the online [#permalink]

Show Tags

New post 23 Nov 2017, 12:57
this question is from Gmatppill that is a reliable source.
The pattern in this question is interesting and important. This pattern has been used by many well-known sources.
B directly links with the argument.

Kudos [?]: 53 [0], given: 1506

Re: After several years of declining product sales, the online   [#permalink] 23 Nov 2017, 12:57

Go to page    1   2    Next  [ 21 posts ] 

Display posts from previous: Sort by

After several years of declining product sales, the online

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

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®.