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# GamesWorld Inc. is a video game manufacturing company | CR

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Intern
Joined: 06 Apr 2017
Posts: 20
Location: India
GMAT 1: 640 Q47 V31
GamesWorld Inc. is a video game manufacturing company | CR  [#permalink]

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24 Jun 2018, 03:06
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2
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Difficulty:

55% (hard)

Question Stats:

61% (01:48) correct 39% (01:32) wrong based on 123 sessions

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GamesWorld Inc. is a video game manufacturing company that is very close to meeting its customer expectations. It follows a subscription model under which every video game that it produces is accessible to every customer. Its goal is to exceed customer satisfaction. In its survey, last year, it found out that most of its customers prefer E10+ rated games more than E, EC, T, and A rated games put together.

Based on the information above, which of the following actions is GamesWorld most likely to take in near future to meet its goals?

A.) Since the profits generated by E, EC, T, and A rated games are higher than E10+ rated games, GamesWorld is not likely to change its product mix.
B.) Since the number of games GamesWorld produces annually is constant, it is likely to start manufacturing a higher proportion E10+ rated games in the near future.
C.) For a similar price, GamesWorld will create a new subscription model that will allow customers who just like E10+ games to access the same.
D.) GamesWorld will likely stop manufacturing E, EC, T and A rated games for some time.
E.) To produce more games, GamesWorld will try and divert some research and development money from E10+ games to E, EC, T, and A rated games.
Intern
Joined: 08 Jul 2016
Posts: 38
Location: Singapore
GMAT 1: 570 Q43 V25
GMAT 2: 640 Q42 V36
WE: Underwriter (Insurance)
Re: GamesWorld Inc. is a video game manufacturing company | CR  [#permalink]

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27 Jun 2018, 09:49
Dear Expert,

Can you please dissect the argument and explain the inference?
Intern
Joined: 08 Jul 2016
Posts: 38
Location: Singapore
GMAT 1: 570 Q43 V25
GMAT 2: 640 Q42 V36
WE: Underwriter (Insurance)
Re: GamesWorld Inc. is a video game manufacturing company | CR  [#permalink]

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27 Jun 2018, 09:50
can we please have the original explanation of this question?
Senior Manager
Joined: 14 Dec 2017
Posts: 471
Re: GamesWorld Inc. is a video game manufacturing company | CR  [#permalink]

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27 Jun 2018, 10:34
1
nishitraj wrote:
GamesWorld Inc. is a video game manufacturing company that is very close to meeting its customer expectations. It follows a subscription model under which every video game that it produces is accessible to every customer. Its goal is to exceed customer satisfaction. In its survey, last year, it found out that most of its customers prefer E10+ rated games more than E, EC, T, and A rated games put together.

Based on the information above, which of the following actions is GamesWorld most likely to take in near future to meet its goals?

A.) Since the profits generated by E, EC, T, and A rated games are higher than E10+ rated games, GamesWorld is not likely to change its product mix.
B.) Since the number of games GamesWorld produces annually is constant, it is likely to start manufacturing a higher proportion E10+ rated games in the near future.
C.) For a similar price, GamesWorld will create a new subscription model that will allow customers who just like E10+ games to access the same.
D.) GamesWorld will likely stop manufacturing E, EC, T and A rated games for some time.
E.) To produce more games, GamesWorld will try and divert some research and development money from E10+ games to E, EC, T, and A rated games.

Question Type: Conclusion/Inference

Premise 1: Gamesworld Inc is close to meeting its customers expectations & the goal of the company is to exceed Customer satisfaction. The subscription model for its customers is to provide access to all games that the company produces.

Premise 2: In a survey, it was found that E10+ games are more preferred by its customers over the other games it produces.

Analysis: The goal of the company is to exceed customer satisfaction & it is already close to meeting its customers expectations. According to the survey most of the company's customers prefer E10+ games, hence we can say that the popularity of the E10+ games has in a way contributed to higher number of satisfied customers. The subscription model of the company provides access to all games, hence the customers have freedom to choose which ever game they prefer to play.

If the company wants to meet its goal of exceeding customer satisfaction, it needs to keep the current business model undisturbed & add on services which the customer prefers, in this case is more E10+ games.

A.) Since the profits generated by E, EC, T, and A rated games are higher than E10+ rated games, GamesWorld is not likely to change its product mix. - Incorrect. This action does not guarantee that it will meet its goals, as the company is not taking any steps towards improving customer satisfaction.

B.) Since the number of games GamesWorld produces annually is constant, it is likely to start manufacturing a higher proportion E10+ rated games in the near future. - Correct. Exactly the action the company should take to provide more games which the customer prefers, games that have a higher chance of leading to increased customer satisfaction.

C.) For a similar price, GamesWorld will create a new subscription model that will allow customers who just like E10+ games to access the same. - Incorrect. Counter productive as that means limited access to customers.

D.) GamesWorld will likely stop manufacturing E, EC, T and A rated games for some time. - Incorrect. This action will disturb the current model, because there could be customers who prefer both E10+ games & other category games as well.

E.) To produce more games, GamesWorld will try and divert some research and development money from E10+ games to E, EC, T, and A rated games. - Incorrect. Counterproductive, as it will lead to lesser development in its most popular games category.

Thanks,
GyM
_________________
Re: GamesWorld Inc. is a video game manufacturing company | CR &nbs [#permalink] 27 Jun 2018, 10:34
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# GamesWorld Inc. is a video game manufacturing company | CR

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