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# Considering the current economy, the introduction of a new

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Senior Manager
Joined: 16 Dec 2011
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Considering the current economy, the introduction of a new  [#permalink]

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17 May 2013, 01:04
2
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15% (low)

Question Stats:

79% (01:30) correct 21% (01:41) wrong based on 82 sessions

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5. Considering the current economy, the introduction of a new brand of cereal is unlikely to expand total sales of cereal, but rather will just cause some existing buyers of cereal to switch brands. So it makes no sense for the Coolidge Corporation to introduce another brand of cereal, since they will only hurt sales of the brands of cereal they already produce.

Which of the following, if true, would most seriously weaken the argument above?

(A) Total sales of cereal will increase as the total population increases.
(B) Many new brands of cereal sell extremely well for the first year of their existence.
(C) Coolidge Corporation currently produces fewer brands of cereal than do its competitors.
(D) Some cereal buyers regularly switch from brand to brand, even when no new brands have been introduced.
(E) Research indicates that the new brand will attract more buyers of competitors’ cereals than buyers of other Coolidge brands.
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Re: Considering the current economy, the introduction of a new  [#permalink]

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17 May 2013, 03:21
2
5)Considering the current economy, the introduction of a new brand of cereal is unlikely to expand total sales of cereal, but rather will just cause some existing buyers of cereal to switch brands. So it makes no sense for the Coolidge Corporation to introduce another brand of cereal, since they will only hurt sales of the brands of cereal they already produce.

Which of the following, if true, would most seriously weaken the argument above?
(A) Total sales of cereal will increase as the total population increases. -
Exaggerated. Moreover this option TRIES to negate the premise "the introduction of a new brand of cereal is unlikely to expand total sales of cereal". GMAT never considers an option correct if it negates the author's premise. Thus INCORRECT.
(B) Many new brands of cereal sell extremely well for the first year of their existence. - Out of scope because this option does not talk about the new brand of Coolidge Corporation. Thus INCORRECT
(C) Coolidge Corporation currently produces fewer brands of cereal than do its competitors. - If Coolidge produces only 5 brands & its competitors produces 10 brands. If Coolidge introduces new brand it may not hurt the sales of its competitors because maybe sale of its competitors is insignificant in comparison to Coolidge. INCORRECT
(D) Some cereal buyers regularly switch from brand to brand, even when no new brands have been introduced. - Irrelevant, same as option B. INCORRECT
(E) Research indicates that the new brand will attract more buyers of competitors’ cereals than buyers of other Coolidge brands.
- BINGO, this option clearly state that introduction of new brand will affect BOTH. Thus it weakens the conclusion that introduction of new brand will affect ONLY Coolidge. CORRECT

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Re: Considering the current economy, the introduction of a new  [#permalink]

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21 May 2013, 21:54
2
Zarrolou wrote:
5) Considering the current economy, the introduction of a new brand of cereal is unlikely to expand total sales of cereal, but rather will just cause some existing buyers of cereal to switch brands. So it makes no sense for the Coolidge Corporation to introduce another brand of cereal, since they will only hurt sales of the brands of cereal they already produce.

Which of the following, if true, would most seriously weaken the argument above?

(A) Total sales of cereal will increase as the total population increases.
(B) Many new brands of cereal sell extremely well for the first year of their existence.
(C) Coolidge Corporation currently produces fewer brands of cereal than do its competitors.
(D) Some cereal buyers regularly switch from brand to brand, even when no new brands have been introduced.
(E) Research indicates that the new brand will attract more buyers of competitors’ cereals than buyers of other

Coolidge brands.

Explanation:

Conclusion of the argument is: Coolidge Corporation should not introduce another brand of cereal so as not to hurt sales of its own existing brands of cereal.

The evidence shown here is: Introduction of new brand of cereal will not expand total sales but cause existing customers to switch brands.

The underlying assumption here is that the new brand of cereal will attract only the existing customers of Coolidge Corporation and no (or hardly any) customer of competitor’s brands of cereal will switch to buy the new brand of cereal of Coolidge Corporation.

The question is asking for a statement to weaken the conclusion. This can be done if the underlying assumption can be proved wrong.

A) Even if the total sales increase, we cannot conclude whether the new brand of cereal will benefit Coolidge Corporation. Wrong.
B) If customers just change from one brand to another brand of cereal of Coolidge Corporation, the total customer base of Coolidge Corporation will remain unchanged and thus the new brand of cereal will not give any advantage to the company. Wrong.
C) May it be fewer brands of cereal that Coolidge Corporation has, this fact does not prove that a new brand of cereal will attract the customers from the company’s competitors. Wrong.
D) Irrespective of introduction of a new brand, if switching brands is usual phenomenon, we cannot say whether introduction of a new brand by Coolidge Corporation will be advantageous for the company. Wrong.
E) Correct. Here the statement proves that the underlying assumption is wrong.

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Re: Considering the current economy, the introduction of a new  [#permalink]

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19 May 2013, 13:08
1
Question 5

Premise 1 :- Total sales of cereals is unlikely to increase considering the current market situation.

Premise 2 :- Intruduction of a new brand of cereal will not fetch new customers in the total cereal market while few existing customers would switch to the new brand

Conclusion :- For Coolidge corporation, plan of Introducing new cereal brand will not boost its total sale as only few of its existing customers would switch to a new brand, resulting in decline in sales of company's other brands.

lets assume that Total Number of cereal customers is 100 and in which 25 customers are of Coolidge corporation's and remaining 75 are of its competitor's.
Author assumes or indirectly states that new cereal brand will fetch customers from the group of 25 customers.
If we establish that the new cereal brand will fetch customers also from the group of 75 customers thereby increasing companies overall customer base, then we can weaken the conclusion.

A) Incorrect - As per premise 1, Given the current market situation, total sales of cereals will not increase at all even if population increases

B) Incorrect - This choice does not comment on whether new customers would come from group 75

C) Incorrect - Nope

D) Incorrect - Here too we are not getting desired information

E) Correct :- This choice states that coolidge corporation will earn some new customers from its competitors. Hence the sales and customer base of coolidge corporation will increase

Narenn
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Re: Considering the current economy, the introduction of a new  [#permalink]

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11 Aug 2018, 10:38
1

Kindly add Timer to the question.

Thanks!
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Considering the current economy, the introduction of a new  [#permalink]

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12 Aug 2018, 04:59
gmat1393 wrote:

Kindly add Timer to the question.

Thanks!

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Considering the current economy, the introduction of a new   [#permalink] 12 Aug 2018, 04:59
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