Quote:
Fashion company executive: The number of competing brands of clothing is increasing much more quickly than is consumer demand for new clothing. As a result, it is becoming ever more difficult for our clothing company to keep consumers focused on our products. To increase our sales, therefore, our company plans to introduce innovative, eye-catching lines of clothing much more frequently.
To evaluate whether the plan described by the executive would be likely to achieve its goal, it would be most useful to know which of the following?
(A) Whether other, competing clothing companies will more frequently introduce new lines of clothing
(B) To what extent consumers' attention tends to be focused on innovative, eye-catching products in other industries
(C) Why the number of competing brands of clothing is increasing more quickly than consumer demand for new clothing
(D) How much more likely most consumers are to buy innovative, eye-catching lines of clothing than they are to buy conventional, familiar clothing
(E) Whether the executive's company is currently selling any innovative and eye-catching lines of clothing
Hi
VeritasKarishma Please suggest on this question. I am taken aback with this question.
In the company when we decide to introduce new product or new strategy, we usually analyze our competitors , understand our existing products , improvements needed, SWOT analysis. Thus how finally we make a conclusion to take the next step.
This goes without saying, ultimate purpose of doing all these methodology is to increase profits that comes indirectly by increasing sales.
In this particular question, What We need to evaluate to determine whether the sales would increase.
The key point to look for : what can have impact on our strategy of introducing clothing much MORE FREQUENTLY.
I like A because: it is important to know whether our competitors are introducing more frequently?
We can keep on hold this option because its not important whether the same strategy can bring results for competitors. Moreover it is only mentioned that brands are increasing but it is not mentioned that they are introcing thir products more frequently, so still can reject this option.
Why I like B:
We can still keep on hold B because it is better to take reference from other indusctries how "MORE FREQUENTLY" stragry works in other industries. But still can be rejected whether it would be applicable to clothing industry. Lets see other optiions if better than B
Why I MOST LIKE E:
I am looking for a strategy of INTRODUCING MORE FREQUENTLY on new/innovating clothing . Let us see HOW IS IT PERFOMING CURRENTLY?
YES; If it is doing good enough then we can continue ahead with introducing more ,
NO: Then means its not our strengthen, our strategy may not work.
Hence E seems better than A or B
Why i REJCTED D:
Rejecr1: conventional, familiar clothing:? I even don't know whether such clothing is with competitors or with me. No information is given about such clothing
Reject2: Only comparison is given. What if new clothing is ONLY BETTER than convention clothing . But both may still be poor performing. Even if both are high end performing, how comparison would help. Without substantial comparison evidence , it is hard to judge based on this information given in D
Hence rejected very strongly..
VeritasKarishma: Please help on my D, E , A and B.
I am still in shock with correct answer D.