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Among the most effective ways to increase sales of an online service i

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Among the most effective ways to increase sales of an online service i  [#permalink]

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New post 24 Oct 2018, 21:00
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Among the most effective ways to increase sales of an online service is to offer some form of free trial for users to experiment with before they purchase the full service. The benefit of such a practice is to encourage sales in individuals who would not buy the product without having tried it first.

Which of the following is best supported by the information given above?


A. The number of people who see the free trial as an acceptable replacement for buying the online service is not greater than the number of people who buy the online service because of their experience within the free trial.

B. Because the cost of offering a free trial can be high, companies are often resistant to offering free trials, especially free trials that offer all features included within the paid version of the online service.

C. In calculating the total number of an online service sold, free trials are generally included as zero-dollar sales rather than as a separate category.

D. The number of sales for a given online service is directly proportional to the number of visitors to the online service's website, a number that tends to increase if a free trial is offered.

E. Online services that are easily adapted to free trial versions sell better than do online services that are not readily distributed as free trials.

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Re: Among the most effective ways to increase sales of an online service i  [#permalink]

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New post 24 Oct 2018, 21:13
Choices B, C, E are irrelevant. So Eliminated.
Now from options A & D, D is talking about no. of visitors to the website but not anything about sales. So Eliminated.

My choice is A
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New post 24 Oct 2018, 21:14
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Among the most effective ways to increase sales of an online service is to offer some form of free trial for users to experiment with before they purchase the full service. The benefit of such a practice is to encourage sales in individuals who would not buy the product without having tried it first.
Understand :
1)AMONG (not only) most eff ways- to inc sales of ONLINE service(not all services) - offer free trial- Goal- exp before then purchase
2)BENEFIT - encourage sales - in whom? who would NOT BUY WITHOUT TRYING FIRST......( the argument has especially mentioned whihc group we are talking about .)

Which of the following is best supported by the information given above?
- Inference ... NOT must be true


A. The number of people who see the free trial as an acceptable replacement for buying the online service is not greater than the number of people who buy the online service because of their experience within the free trial.
- COORECT- the author mentions a BENEFIT ( encourage SALES ) and the goal - increase the likelihood of purchase.
if the ans choice were opposite and the people who who view free trial as a REPLACEMENT for buying , then this directly negates the benefit mentioned by the author and hence makes the PLAN futile. SO this answer is correct.

B. Because the cost of offering a free trial can be high, companies are often resistant to offering free trials, especially free trials that offer all features included within the paid version of the online service.
- WRONG- no mention of COSTS.

C. In calculating the total number of an online service sold, free trials are generally included as zero-dollar sales rather than as a separate category.
- WRONG- Calculating the total no. NOT MENTIONED.

D. The number of sales for a given online service is directly proportional to the number of visitors to the online service's website, a number that tends to increase if a free trial is offered.
-WRONG- NO CORRELATION given between sales and no. of visitors.

E. Online services that are easily adapted to free trial versions sell better than do online services that are not readily distributed as free trials.
- WRONG -NO COMPARISON between two types of online services
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Re: Among the most effective ways to increase sales of an online service i  [#permalink]

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New post 24 Oct 2018, 21:16
I think the answer should be D. Since it talks sales directly related to number of visitors to the website.


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New post 24 Oct 2018, 21:26
Vinodsai1995 wrote:
I think the answer should be D. Since it talks sales directly related to number of visitors to the website.


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My friend lemme tell u something...
CR RC AND SC Are all about MODIFFIERS . One word can push the ans choice into hell.

Option D:

The number of sales for a given online service IS DIRECTLY PROPORTIONAL to the number of visitors to the online service's website, a number that tends to increase if a free trial is offered.

your reasoning may be right that the author does mention about sales and number of visitors... But does it Tell us that the both are DIRECTLY PROPORTIONAL? This is too strong a word my friend.
One increases and then second has to increase...No this may not be true... Look carefully at the argument ...the author just says that BENEFIT is that people will TRY the free trial version ...but does he mention that it will result in sale? NO...
Secondly, this option generalised the argument...the argument specifically talks about people WHO DO NOT BUY WITHOUT FREE TRIAL... There may be millions who don't need a free trial and purchase directly...
Thirdly, the argument NEVER tells us that there IS. A correlation... No he is just giving us a plan and mentioning a benefit and that too within a narrow scope ( a particular group) ...

I suggest you to read EACH AND EVERYWORD and then see if it is mentioned in the passage...

Happy GMATing

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Re: Among the most effective ways to increase sales of an online service i  [#permalink]

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New post 25 Oct 2018, 02:43
I have a problem with A. Let's try to negate it.

Let's imagine that our sales are 0. We start offering free trials. 10 users try our product, and 4 of those 10 buy it later. A is negated (there are indeed more people who got the product for free then those who have chosen to pay for it: 6 v. 4), but our sales still have increased by 4 (from 0 to 4).

Therefore, negating A doesn't ruin the argument. Either there must be a better answer choice, or the question is flawed.
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New post 25 Oct 2018, 20:04
Hi Experts,

Please help in providing a detailed solution of this question.
I am still confused between A and D. I still understand D to be a better option.
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New post 25 Oct 2018, 20:19
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Bunuel wrote:
Among the most effective ways to increase sales of an online service is to offer some form of free trial for users to experiment with before they purchase the full service. The benefit of such a practice is to encourage sales in individuals who would not buy the product without having tried it first.

Which of the following is best supported by the information given above?


A. The number of people who see the free trial as an acceptable replacement for buying the online service is not greater than the number of people who buy the online service because of their experience within the free trial.

B. Because the cost of offering a free trial can be high, companies are often resistant to offering free trials, especially free trials that offer all features included within the paid version of the online service.

C. In calculating the total number of an online service sold, free trials are generally included as zero-dollar sales rather than as a separate category.

D. The number of sales for a given online service is directly proportional to the number of visitors to the online service's website, a number that tends to increase if a free trial is offered.

E. Online services that are easily adapted to free trial versions sell better than do online services that are not readily distributed as free trials.


VERITAS PREP OFFICIAL EXPLANATION:



As with any inference question, your job here is to understand the information given and to choose an answer choice guaranteed by the text. You are told in this stimulus to this question that free trials are meant to increase sales of the full version of an online service by giving users who would not buy the service without trying it first a chance to experiment with it. Choice (A) is the only answer choice that is guaranteed by the text. If the number of people who find that the free trial was a good substitute is bigger than the number of people who are incentivized to buy the full online service because of the free trial, then the ability to experiment before you try the full service would not only be meaningless, it would be counter to the reason that companies offer free trials.

Among the other answers, choice (B) can be eliminated because there is no information about what makes companies more or less likely to offer free trials. Choice (C) can be eliminated because there is no information given about the spread of companies’ free versus paid sales. Choice (D) can be eliminated because there is no information about whether the two values are directly proportional at all. Choice (E) can be eliminated for similar reasons to choice (B). there is no information about the importance of the ease of creating a free trial.
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PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

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Re: Among the most effective ways to increase sales of an online service i  [#permalink]

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New post 25 Oct 2018, 22:51
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alexkozhura wrote:
I have a problem with A. Let's try to negate it.

Let's imagine that our sales are 0. We start offering free trials. 10 users try our product, and 4 of those 10 buy it later. A is negated (there are indeed more people who got the product for free then those who have chosen to pay for it: 6 v. 4), but our sales still have increased by 4 (from 0 to 4).

Therefore, negating A doesn't ruin the argument. Either there must be a better answer choice, or the question is flawed.


We are looking for the conclusion of the argument. Negating the option is used when we are looking for an assumption.
Anyway, since we are looking for the conclusion, negating the correct option is equivalent to negating the conclusion here.

(A) The number of people who see the free trial as an acceptable replacement for buying the online service is not greater than the number of people who buy the online service because of their experience within the free trial.

There are two scenarios: "No free trial" vs "Give free trial"
The argument says that "give free trial" gets more business.

"Give free trial" works in two ways -
One, there are people who would have bought the product in "no free trial" scenario but after using the free trial, they don't feel the need to buy it anymore. For example, think of a video game. User X would have bought it but he played the game in the trial version and was satisfied. He doesn't need to buy it anymore. So this will decrease the potential sale.
Two, there are people who wouldn't buy the product in "no free trial" scenario. But they see the free trial and enjoy their experience with it so they buy it. This increases the sale.

Since the argument is telling us that "give free trial" gets more business, we know that the second point trumps over first. This is what (A) is saying - that second point has more impact (people) than the first.

The comparison is not between people who buy and those who don't after checking the free trial (as you suggested)
It is between those who would have bought without free trial but did not with free trial and those who would not have bought without free trial but did after free trial.
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Re: Among the most effective ways to increase sales of an online service i  [#permalink]

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New post 25 Oct 2018, 22:54
adstudy wrote:
Hi Experts,

Please help in providing a detailed solution of this question.
I am still confused between A and D. I still understand D to be a better option.


I have explained (A) above.
Note that (D) is certainly incorrect.

(D) The number of sales for a given online service is directly proportional to the number of visitors to the online service's website ...

We cannot conclude any relation between sales and visitors to website, much less a directly proportional one. The argument doesn't tell us anything about this. We need to find the conclusion. The conclusion should have no new information.
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New post 25 Oct 2018, 23:12
VeritasKarishma

Dear Karishma,

Thank you for your explanation, and for pointing out that it's not an assumption question. Good point.

However, nowhere in A do we find any indication that we are talking about customers who would have bought the product without a free trial. Here's the sentence:

The number of people who see the free trial as an acceptable replacement for buying the online service is not greater than the number of people who buy the online service because of their experience within the free trial.


I don't think there's any indication in this sentence that we talk here about customers who would have bought the product without a free trial.

I usually try to translate a complicated argument into a simple real-world example. Wikipedia would be a good analogy here. Wikipedia offers the same service to everyone. Most use Wikipedia for free; some people (I'm sure that the number is less than 1%) donate to Wikipedia. But even though the proportion of people who donate to Wikipedia is waaaaaay less than 50%, Wikipedia still manages to thrive on donation only. (Of course Wikipedia is a non-profit, but the analogy still works). However, if Wikipedia charged for its services something (even $1 per year), its number of users would collapse and so would its business model.

Could you please point out the flaw in my thinking?
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Re: Among the most effective ways to increase sales of an online service i  [#permalink]

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New post 26 Oct 2018, 02:26
alexkozhura wrote:
VeritasKarishma

Dear Karishma,

Thank you for your explanation, and for pointing out that it's not an assumption question. Good point.

However, nowhere in A do we find any indication that we are talking about customers who would have bought the product without a free trial. Here's the sentence:

The number of people who see the free trial as an acceptable replacement for buying the online service is not greater than the number of people who buy the online service because of their experience within the free trial.


I don't think there's any indication in this sentence that we talk here about customers who would have bought the product without a free trial.

I usually try to translate a complicated argument into a simple real-world example. Wikipedia would be a good analogy here. Wikipedia offers the same service to everyone. Most use Wikipedia for free; some people (I'm sure that the number is less than 1%) donate to Wikipedia. But even though the proportion of people who donate to Wikipedia is waaaaaay less than 50%, Wikipedia still manages to thrive on donation only. (Of course Wikipedia is a non-profit, but the analogy still works). However, if Wikipedia charged for its services something (even $1 per year), its number of users would collapse and so would its business model.

Could you please point out the flaw in my thinking?


Hey alexkozhura,

Yes, I understand the problem you are facing, but the implication I mention is in the word choice - acceptable replacement

Think of what I mean by this - I find that black tea is an acceptable replacement of green tea.
What would this imply? That I have green tea but if required, black tea can replace it.
If I don't intend to have green tea, this statement makes no sense. Why would I need something to "replace" it then? Only if I plan to "have" it, would I "replace" it.

In the same way, "the number of people who see the free trial as an acceptable replacement for buying the online service" are those who would have bought the online service but now, since the free trial is available, they see it as an acceptable replacement of the service. Otherwise, where is the point of the free trial being a replacement?
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Re: Among the most effective ways to increase sales of an online service i  [#permalink]

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New post 26 Oct 2018, 23:34
AdityaHongunti wrote:
Vinodsai1995 wrote:
I think the answer should be D. Since it talks sales directly related to number of visitors to the website.


Sent from my iPhone using GMAT Club Forum mobile app


My friend lemme tell u something...
CR RC AND SC Are all about MODIFFIERS . One word can push the ans choice into hell.

Option D:

The number of sales for a given online service IS DIRECTLY PROPORTIONAL to the number of visitors to the online service's website, a number that tends to increase if a free trial is offered.

your reasoning may be right that the author does mention about sales and number of visitors... But does it Tell us that the both are DIRECTLY PROPORTIONAL? This is too strong a word my friend.
One increases and then second has to increase...No this may not be true... Look carefully at the argument ...the author just says that BENEFIT is that people will TRY the free trial version ...but does he mention that it will result in sale? NO...
Secondly, this option generalised the argument...the argument specifically talks about people WHO DO NOT BUY WITHOUT FREE TRIAL... There may be millions who don't need a free trial and purchase directly...
Thirdly, the argument NEVER tells us that there IS. A correlation... No he is just giving us a plan and mentioning a benefit and that too within a narrow scope ( a particular group) ...

I suggest you to read EACH AND EVERYWORD and then see if it is mentioned in the passage...

Happy GMATing

Posted from my mobile device
Thanks buddy for the suggestions.


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Re: Among the most effective ways to increase sales of an online service i &nbs [#permalink] 26 Oct 2018, 23:34
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