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In many surveys, American consumers have expressed a

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Manager
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In many surveys, American consumers have expressed a [#permalink]

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New post 22 Jun 2007, 12:26
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In many surveys, American consumers have expressed a willingness to spend up to 10 percent more for products that are ecologically sound. Encouraged by such surveys, Bleach-O Corporation promoted a new laundry detergent, Bleach-O Green, as safer for the environment. Bleach-O Green cost 5 percent more than typical detergents. After one year, Bleach-O Green had failed to capture a significant share of the detergent market and was withdrawn from sale.

Which of the following questions is LEAST likely to be relevant in determining the reasons for the failure of Bleach-O Green?

(A) How effective as a detergent was Bleach-O Green?
(B) How many other detergents on the market were promoted as safe for the environment?
(C) How much more did Bleach-O Green cost to manufacture than ordinary detergents?
(D) To what extent did consumers accept the validity of Bleach-O Green advertised and promoted to consumers?
(E) How effectively was Bleach-O Green advertised and promoted to consumers?

Is the answer B

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New post 22 Jun 2007, 13:46
I would say c. The paragraph just says that Bleach O Green failed to capture a share of the market and nothing about it being profitable. Therefore manufacuring costs have nothing to do with it gaining market share.

Plus you already know that it is 5% more and customers are willing to pay 10% more.

Go with C.

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Re: critical reasoning 1 [#permalink]

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New post 22 Jun 2007, 13:48
(A) How effective as a detergent was Bleach-O Green?
This question is relevant, because if customers were not satisfied with the products, the brand would fail to capture market share.
(B) How many other detergents on the market were promoted as safe for the environment?
Relevant. Who is the detergent competing against? Is the market flooded?
(C) How much more did Bleach-O Green cost to manufacture than ordinary detergents?
Not relevant. We already know that the price is 5% more than regular detergents.
(D) To what extent did consumers accept the validity of Bleach-O Green advertised and promoted to consumers?
Relevant. Did customers view this product as environment friendly?
(E) How effectively was Bleach-O Green advertised and promoted to consumers?
Relevant. Marketing is a pretty big component to capture market share.

My answer is C.

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Re: critical reasoning 1   [#permalink] 22 Jun 2007, 13:48
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