Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 27 May 2017, 04:18

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Experia Inc , one of the pioneers in the online retailing in

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

### Hide Tags

e-GMAT Representative
Joined: 02 Nov 2011
Posts: 2022
Followers: 2217

Kudos [?]: 7756 [1] , given: 291

Experia Inc , one of the pioneers in the online retailing in [#permalink]

### Show Tags

22 Feb 2013, 20:14
1
KUDOS
Expert's post
00:00

Difficulty:

(N/A)

Question Stats:

100% (02:54) correct 0% (00:00) wrong based on 144 sessions

### HideShow timer Statistics

Here are two Weaken questions, based on the same passage:

Experia Inc , one of the pioneers in the online retailing in the cosmetics business, does not have a physical presence and sells all its products through its website. While evaluating its various marketing channels to make the best use of its funds, the company has discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on the fact whether he/she came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google.

Which of the following most strongly undermines the ability of the company’s plan to increase its profits?
A. An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user
B. The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in case of Google
C. Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales
D. Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.
E. By investing time and money on writing articles in Comimetico, Experia can reduce its customer acquisition costs to half to what they are now.

Which of the following casts the most doubt on the ability of the plan to achieve its objective of increasing the sales of the company?
A. Whereas almost all online retailers advertise their products on Google, there are only a few retailers, especially in the cosmetics business, which use Cosmetico as a marketing channel
B. In the past, it has been seen that in case of customer originating from Cosmetico that such customers become regular customers of the company and make most of their latter purchases by directly visiting the company’s website.
C. The average order size of a customer depends more on the product line of the company than any characteristic of the customer
D. The average monthly costs of advertising at Google is just a small fraction of the average monthly costs of advertising at Cosmetico
E. It has been observed that the customers who come through Google are generally more satisfied with the Experia’s products than customers who come from Cosmetico and the former also praise the Experia’s products on various online forums while the latter do not.

Happy Solving

-Chiranjeev
_________________

| '4 out of Top 5' Instructors on gmatclub | 70 point improvement guarantee | www.e-gmat.com

Last edited by egmat on 07 May 2013, 08:59, edited 2 times in total.
If you have any questions
you can ask an expert
New!
Moderator
Joined: 01 Sep 2010
Posts: 3175
Followers: 857

Kudos [?]: 7317 [1] , given: 1065

Re: Experia Inc , one of the pioneers - Two Weaken Questions [#permalink]

### Show Tags

23 Feb 2013, 04:37
1
KUDOS
B for the first one and C for the second one.

Though, for the second is a bit ackward because the conclusion talk about profits and the stem talks about sales but there could not be correlation. So is a bit not related to weaken the argument. My feeling
_________________
e-GMAT Representative
Joined: 02 Nov 2011
Posts: 2022
Followers: 2217

Kudos [?]: 7756 [0], given: 291

Re: Experia Inc , one of the pioneers - Two Weaken Questions [#permalink]

### Show Tags

23 Feb 2013, 04:54
carcass wrote:
B for the first one and C for the second one.

Though, for the second is a bit ackward because the conclusion talk about profits and the stem talks about sales but there could not be correlation. So is a bit not related to weaken the argument. My feeling

Hi Carcass,

Thanks for pointing out the discrepancy. The objective of the plan has been removed from the passage since the objective is mentioned in each of the question stems.

However, I would like to point out that unless and until explicitly stated, in strengthen and weaken answer choices, sales is generally taken to be positively correlated with the profits. So, if an option statement indicates increase in sales, it also indicates increase in profits, unless it also talks about increase in costs.

Also, would you like to review your answer choice to the 2nd question, in light of the current change?

Thanks

Chiranjeev
_________________

| '4 out of Top 5' Instructors on gmatclub | 70 point improvement guarantee | www.e-gmat.com

Last edited by egmat on 23 Feb 2013, 09:25, edited 1 time in total.
Moderator
Joined: 01 Sep 2010
Posts: 3175
Followers: 857

Kudos [?]: 7317 [1] , given: 1065

Re: Experia Inc , one of the pioneers - Two Weaken Questions [#permalink]

### Show Tags

23 Feb 2013, 07:03
1
KUDOS
yup thanks

For the record I'm a Certified Public Accountant

Quote:
However, I would like to point out that unless and until explicitly stated, in strengthen and weaken answer choices, sales is generally taken to be positively correlated with the profits. So, if an option statement indicates increase in sales, it also indicates increase in costs, unless it also talks about increase in costs.

totally agree

For the second one B it is
_________________
Intern
Joined: 15 Aug 2012
Posts: 47
Followers: 1

Kudos [?]: 34 [1] , given: 2

Re: Experia Inc , one of the pioneers - Two Weaken Questions [#permalink]

### Show Tags

23 Feb 2013, 07:21
1
KUDOS
egmat wrote:
Here are two Weaken questions, based on the same passage:

Experia Inc , one of the pioneers in the online retailing in the cosmetics business, does not have a physical presence and sells all its products through its website. While evaluating its various marketing channels to make the best use of its funds, the company has discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on the fact whether he/she came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google.

Which of the following most strongly undermines the ability of the company’s plan to increase its profits?
A. An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user
B. The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in case of Google
C. Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales
D. Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.
E. By investing time and money on writing articles in Comimetico, Experia can reduce its customer acquisition costs to half to what they are now.

Which of the following casts the most doubt on the ability of the plan to achieve its objective of increasing the sales of the company?
A. Whereas almost all online retailers advertise their products on Google, there are only a few retailers, especially in the cosmetics business, which use Cosmetico as a marketing channel
B. In the past, it has been seen that in case of customer originating from Cosmetico that such customers become regular customers of the company and make most of their latter purchases by directly visiting the company’s website.
C. The average order size of a customer depends more on the product line of the company than any characteristic of the customer
D. The average monthly costs of advertising at Google is just a small fraction of the average monthly costs of advertising at Cosmetico
E. It has been observed that the customers who come through Google are generally more satisfied with the Experia’s products than customers who come from Cosmetico and the former also praise the Experia’s products on various online forums while the latter do not.

Happy Solving

-Chiranjeev

Proposed Plan :- Shifting marketing funds from magazine to Google
Conclusion :- The plan will increase profits for the company.

Prethinking :- The implementation of the proposed plan will have some negative impact on the revenue of the company.

POE :-
question 1
Option A :- OFS - This option Talks about the income group of the magazine and Google. But the argument has already mentioned that the purchase by the customer is regardless of their channel.
Option B :- Correct - if the company may loose many potential customers then the revenues will fall.
Option C :- Opposite - This option strengthens the conclusion
Option D :- Opposite - This option in a way strengthens the conclusion
Option E :- OFS - other mechanisms(writing in comimetico) is out side the scope of passage.

question 2 :-
Option A :- Opposite - this strengthens the conclusion by stating that Google is the more preferred channel for this type of business.
Option B :- Correct - If the plan is implemented then the company may loose its long term clients
Option C :- OFS - talks about the order size does and it has already been mentioned in the passage that customer purchase is independent of the channel
Option D :- Opposite - This option strengthens the conclusion
Option E :- Opposite - This option strengthens the conclusion.

IMO :- B, B
Manager
Joined: 25 Dec 2012
Posts: 58
Location: India
Concentration: Strategy, Sustainability
Schools: Fisher '16 (M)
GPA: 4
WE: Information Technology (Consulting)
Followers: 2

Kudos [?]: 9 [0], given: 6

Re: Experia Inc , one of the pioneers in the online retailing in [#permalink]

### Show Tags

04 Mar 2013, 02:25
egmat wrote:
Here are two Weaken questions, based on the same passage:

Experia Inc , one of the pioneers in the online retailing in the cosmetics business, does not have a physical presence and sells all its products through its website. While evaluating its various marketing channels to make the best use of its funds, the company has discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on the fact whether he/she came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google.

Which of the following most strongly undermines the ability of the company’s plan to increase its profits?
A. An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user
B. The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in case of Google
C. Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales
D. Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.
E. By investing time and money on writing articles in Comimetico, Experia can reduce its customer acquisition costs to half to what they are now.

Which of the following casts the most doubt on the ability of the plan to achieve its objective of increasing the sales of the company?
A. Whereas almost all online retailers advertise their products on Google, there are only a few retailers, especially in the cosmetics business, which use Cosmetico as a marketing channel
B. In the past, it has been seen that in case of customer originating from Cosmetico that such customers become regular customers of the company and make most of their latter purchases by directly visiting the company’s website.
C. The average order size of a customer depends more on the product line of the company than any characteristic of the customer
D. The average monthly costs of advertising at Google is just a small fraction of the average monthly costs of advertising at Cosmetico
E. It has been observed that the customers who come through Google are generally more satisfied with the Experia’s products than customers who come from Cosmetico and the former also praise the Experia’s products on various online forums while the latter do not.

Happy Solving

-Chiranjeev

Which of the following most strongly undermines the ability of the company’s plan to increase its profits?
A. An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user - Income of visitor OFS
B. The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in case of Google -
Lets take an example - for 10 \$ spent on experia attracts 5 visitors and 10 visitors for the same sum in google.
from the conversion ratio if 2 of 10 visitors thru google become its customers then 4 (several times - twice can be the minimum)of 5 customers become their customers through cosmetico. - correct

C. Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales
- Previous year stats may not be applicable to the current year. Also this strengthens the argument
D. Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.
- The company is interested in increasing the profits and not the geography of their presence
E. By investing time and money on writing articles in Comimetico, Experia can reduce its customer acquisition costs to half to what they are now.
- New terminology - Customer acquisition cost - No information about the same in the passage
- Also Investing time is going to cost the company and no information is given relevant to that

Which of the following casts the most doubt on the ability of the plan to achieve its objective of increasing the sales of the company?
A. Whereas almost all online retailers advertise their products on Google, there are only a few retailers, especially in the cosmetics business, which use Cosmetico as a marketing channel - OFS

B. In the past, it has been seen that in case of customer originating from Cosmetico that such customers become regular customers of the company and make most of their latter purchases by directly visiting the company’s website.
- For those who have already become loyal customers, Experia need not spend money in cosmetico. Every single time, cosmetico provides experia with new customers. This over a long term is more profitable. Even though it cites a past fact, I chose this option

C. The average order size of a customer depends more on the product line of the company than any characteristic of the customer
- This also casts doubt on the company`s plans to shift more funds to google. But this is very generic. I felt B more compulsive in weakening than C.
D. The average monthly costs of advertising at Google is just a small fraction of the average monthly costs of advertising at Cosmetico
- Strengthens the argument
E. It has been observed that the customers who come through Google are generally more satisfied with the Experia’s products than customers who come from Cosmetico and the former also praise the Experia’s products on various online forums while the latter do not.
- Strengthens the argument
Manager
Status: Waiting
Joined: 11 Dec 2012
Posts: 53
Location: Bahrain
Concentration: Healthcare, General Management
GMAT 1: 640 Q49 V24
GMAT 2: 720 Q49 V40
WE: Sales (Other)
Followers: 6

Kudos [?]: 56 [0], given: 144

Re: Experia Inc , one of the pioneers in the online retailing in [#permalink]

### Show Tags

26 Mar 2013, 08:44
IMO B, B.

Although I felt both the questions were very similar.
Intern
Joined: 30 Jan 2013
Posts: 8
Location: United States
Concentration: Entrepreneurship, International Business
Schools: Foster '15
GMAT Date: 04-13-2013
GPA: 3.92
WE: General Management (Education)
Followers: 0

Kudos [?]: 6 [0], given: 3

Re: Experia Inc , one of the pioneers in the online retailing in [#permalink]

### Show Tags

27 Mar 2013, 14:41
B & B

Any idea when the OA will be posted?
e-GMAT Representative
Joined: 02 Nov 2011
Posts: 2022
Followers: 2217

Kudos [?]: 7756 [0], given: 291

Re: Experia Inc , one of the pioneers in the online retailing in [#permalink]

### Show Tags

31 Mar 2013, 10:02
Hi,

As I can see, most of you have gotten both the questions right

OA are B and B.

Thanks,
Chiranjeev
_________________

| '4 out of Top 5' Instructors on gmatclub | 70 point improvement guarantee | www.e-gmat.com

Director
Joined: 26 Mar 2013
Posts: 944
Followers: 7

Kudos [?]: 202 [0], given: 122

Re: Experia Inc , one of the pioneers in the online retailing in [#permalink]

### Show Tags

18 Feb 2015, 07:40
egmat wrote:
Hi,

As I can see, most of you have gotten both the questions right

OA are B and B.

Thanks,
Chiranjeev

Hi,
I liked the questions as both deals from different perspective. However, I want ot know if it should be tagged under sub 00 question. I think it 650.

Any thoughts

Thanks
Re: Experia Inc , one of the pioneers in the online retailing in   [#permalink] 18 Feb 2015, 07:40
Similar topics Replies Last post
Similar
Topics:
13 #Top150 CR: Joanne: An increasing number of online retailers now allow 8 10 Mar 2017, 06:13
6 An online retailer 5 28 Oct 2015, 14:40
6 Online retail giant Amazon.com has joined the price war of 11 18 Jan 2014, 22:19
69 Joanne: An increasing number of online retailers now allow c 27 21 Sep 2016, 06:07
5 An online news portal is often one of the first sources to 9 14 Sep 2015, 09:41
Display posts from previous: Sort by

# Experia Inc , one of the pioneers in the online retailing in

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

 Powered by phpBB © phpBB Group and phpBB SEO 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®.