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Bercedez Meiz, an Italian automobile manufacturer has final plans

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Bercedez Meiz, an Italian automobile manufacturer has final plans  [#permalink]

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New post 10 Sep 2018, 08:03
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E

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  15% (low)

Question Stats:

84% (01:32) correct 16% (01:54) wrong based on 62 sessions

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Bercedez Meiz, an Italian automobile manufacturer has final plans approved for a new model that replaces their current model NL670 belonging to their flagship series. It is predicted to be by far the best in the SUV segment and expected to be launched 16 months from now. Altrix, their marketing partner has suggested that Bercedez Meiz start advertising about the new model to maximize the initial sales of the SUV model. But the company has decided to wait another 12 months before starting to market the new model.


Which of the following, if true, provides Bercedez Meiz with the best reason for postponing advertising the new model?

A. Since the costs of marketing has gone up, Bercedez Meiz has to shell out 10% more than it had in its previous marketing drive.

B. According to the previous statistics Bercedez Meiz has seen a considerable decrease in sales of the current model of cars whenever a new one was advertised.

C. Many customers do not buy models that have been in the market for less than a year.

D. ECW, the rivals of Bercedez Meiz is rumored to be coming up with a similar new model vehicle with better features than Bercedez Meiz’s latest model in the market.


E. The new model that is going to be launched in 16 months would be the most expensive model of its kind in the market.

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Re: Bercedez Meiz, an Italian automobile manufacturer has final plans  [#permalink]

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New post 11 Sep 2018, 04:54
Bercedez Meiz, an Italian automobile manufacturer has final plans approved for a new model that replaces their current model NL670 belonging to their flagship series. It is predicted to be by far the best in the SUV segment and expected to be launched 16 months from now. Altrix, their marketing partner has suggested that Bercedez Meiz start advertising about the new model to maximize the initial sales of the SUV model. But the company has decided to wait another 12 months before starting to market the new model.

Boil it down - the company has decided to wait another 12 months before starting to market the new model.

Which of the following, if true, provides Bercedez Meiz with the best reason for postponing advertising the new model?

A. Since the costs of marketing has gone up, Bercedez Meiz has to shell out 10% more than it had in its previous marketing drive. - Irrelevant - does not explain how waiting for another 12 months is helpful

B. According to the previous statistics Bercedez Meiz has seen a considerable decrease in sales of the current model of cars whenever a new one was advertised. - Correct -- since the launch of the new model is 16 months from now, it makes sense to delay the marketing of the new model to 4 months before its' launch

C. Many customers do not buy models that have been in the market for less than a year. - Irrelevant

D. ECW, the rivals of Bercedez Meiz is rumored to be coming up with a similar new model vehicle with better features than Bercedez Meiz’s latest model in the market. - Irrelevant

E. The new model that is going to be launched in 16 months would be the most expensive model of its kind in the market. - Irrelevant

Answer B
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Re: Bercedez Meiz, an Italian automobile manufacturer has final plans  [#permalink]

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New post 11 Sep 2018, 05:38
Bercedez Meiz, an Italian automobile manufacturer has final plans approved for a new model that replaces their current model NL670 belonging to their flagship series. It is predicted to be by far the best in the SUV segment and expected to be launched 16 months from now. Altrix, their marketing partner has suggested that Bercedez Meiz start advertising about the new model to maximize the initial sales of the SUV model. But the company has decided to wait another 12 months before starting to market the new model.


Which of the following, if true, provides Bercedez Meiz with the best reason for postponing advertising the new model?

A. Since the costs of marketing has gone up, Bercedez Meiz has to shell out 10% more than it had in its previous marketing drive.
Does not help us explain the situation. Irrelevant. Drop it.

B. According to the previous statistics Bercedez Meiz has seen a considerable decrease in sales of the current model of cars whenever a new one was advertised.
Provides a good enough reason. Company would not want to loose on sales of its other models. Contender. Keep it.

C. Many customers do not buy models that have been in the market for less than a year.
Irrelevant to advertising for a model that is yet to be launched. Drop it.

D. ECW, the rivals of Bercedez Meiz is rumored to be coming up with a similar new model vehicle with better features than Bercedez Meiz’s latest model in the market.
Opposite. Drop it.

E. The new model that is going to be launched in 16 months would be the most expensive model of its kind in the market.
Similar to A> Does not help us. Drop it.

Answer: B
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Re: Bercedez Meiz, an Italian automobile manufacturer has final plans &nbs [#permalink] 11 Sep 2018, 05:38
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