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09 May 2018, 02:29
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D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
62% (01:38) correct
38%
(01:51)
wrong
based on 368
sessions
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Not Attempted Yet
Companies can attract a great number of new customers by discounting prices on their products. However, discounted prices usually lead to lower profit margins on sales. Therefore, companies that already have low profit margins and cannot decrease their prices any further will not be able to attract a great number of new customers.
The argument above is flawed because it fails to consider that
A. It is possible to attract some new customers without discounting prices.
B. It is possible for companies to attract a great number of new customers without significantly discounting prices on their products.
C. More customers do not necessarily mean greater profits for the company.
D. A great many new customers may be attracted by means other than price reduction.
E. Many companies have significantly increased their profits without discounting prices on their products.
The argument above is flawed because it fails to consider that
A. It is possible to attract some new customers without discounting prices.
B. It is possible for companies to attract a great number of new customers without significantly discounting prices on their products.
C. More customers do not necessarily mean greater profits for the company.
D. A great many new customers may be attracted by means other than price reduction.
E. Many companies have significantly increased their profits without discounting prices on their products.
09 May 2018, 02:31
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Detail answer - https://www.mbacrystalball.com/blog/201 ... ufficient/
Choice A. It is possible to attract some new customers without discounting prices. The word some in this statement is not strong enough: the argument is concerned with attracting a great number of new customers, which is not the same as some customers. Note that the precision in word usage is sometimes a pitfall in these questions. Every detail counts!
Choice B. It is possible for companies to attract a great number of new customers without significantly discounting prices on their products. The argument above never said anything about discounting prices significantly. It was hinged on the premise that companies unable to reduce their prices by any margin, significant or otherwise, would be unable to attract customers. Therefore adding the word ‘significantly’ does not undermine the statement’s avowal of the necessity of price reduction at any rate for increasing business. This choice fails to address the major flaw in the argument.
Choice C. More customers do not necessarily mean greater profits for the company. The argument is concerned with means of increasing the number of new customers. Whether more customers always mean greater profits is not important. Again, this choice fails to address the major flaw in the argument.
Choice D. A great many new customers may be attracted by means other than price reduction. As we have already determined, the flaw is that the argument assumes that price reduction is the only means of attracting a great number of new customers. Here we correctly reinstate the condition of ‘price reduction’ as sufficient rather than a necessary condition. Furthermore, this statement directly addresses the flaw using proportional language. This is the correct answer.
Choice E. Many companies have significantly increased their profits without discounting prices on their products. The argument is concerned with attracting new customers, not with increasing profits. The fact that some companies may have increased their profits without reducing prices does not necessarily mean that their profits increased due to a greater number of new customers.
Choice D is the correct answer.
Choice A. It is possible to attract some new customers without discounting prices. The word some in this statement is not strong enough: the argument is concerned with attracting a great number of new customers, which is not the same as some customers. Note that the precision in word usage is sometimes a pitfall in these questions. Every detail counts!
Choice B. It is possible for companies to attract a great number of new customers without significantly discounting prices on their products. The argument above never said anything about discounting prices significantly. It was hinged on the premise that companies unable to reduce their prices by any margin, significant or otherwise, would be unable to attract customers. Therefore adding the word ‘significantly’ does not undermine the statement’s avowal of the necessity of price reduction at any rate for increasing business. This choice fails to address the major flaw in the argument.
Choice C. More customers do not necessarily mean greater profits for the company. The argument is concerned with means of increasing the number of new customers. Whether more customers always mean greater profits is not important. Again, this choice fails to address the major flaw in the argument.
Choice D. A great many new customers may be attracted by means other than price reduction. As we have already determined, the flaw is that the argument assumes that price reduction is the only means of attracting a great number of new customers. Here we correctly reinstate the condition of ‘price reduction’ as sufficient rather than a necessary condition. Furthermore, this statement directly addresses the flaw using proportional language. This is the correct answer.
Choice E. Many companies have significantly increased their profits without discounting prices on their products. The argument is concerned with attracting new customers, not with increasing profits. The fact that some companies may have increased their profits without reducing prices does not necessarily mean that their profits increased due to a greater number of new customers.
Choice D is the correct answer.
31 May 2018, 02:23
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aragonn
My Line of reasoning:-
customer may be attracted to items other than discount ,if item has some other unique feature than similar or some other kind of items
Option D ,tells us the same
Hence best option than others...
Ans D
