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In the United States financing of marketing research by

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Manager
Joined: 08 Oct 2010
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In the United States financing of marketing research by [#permalink]

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25 Oct 2010, 01:58
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Difficulty:

65% (hard)

Question Stats:

56% (02:59) correct 44% (02:47) wrong based on 39 sessions

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In the United States financing of marketing research by private firms remained steady as a percentage of sales during the period between 1968 and 1978 (after correcting for inflation). But slowdowns in the growth of marketing productivity also occurred during that period, a fact that refutes the notion that the growth of marketing productivity is directly proportional to the amount invested in marketing research.

Which of the following, if true for the United States, most weakens the argument above?

(A) Federal funds, which constituted a significant portion of the support for marketing research
from 1968 to 1978, fell annually and substantially during that period.
(B) The inflation that occurred between 1968 and 1978, was more severe than leading economists had expected.
(C) Marketing executives generally favor investing an appreciably larger portion of corporate funds in short-term product development than in basic research.
(D) The advertisers who worked in marketing from 1968 to 1978 were, as a group more, experienced in their jobs than were those who worked in the marketing industry during the
previous ten-year period
(E) Corporate financing of marketing research increased, in several of the years immediately following 1978 (after correcting for inflation).
[Reveal] Spoiler: OA
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Manager
Joined: 16 Oct 2010
Posts: 85
Location: United States
Concentration: Finance, Entrepreneurship
GMAT 1: 700 Q49 V35
WE: Information Technology (Investment Banking)
Re: financing of marketing research [#permalink]

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25 Oct 2010, 03:39
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feruz77 wrote:
In the United States financing of marketing research by private firms remained steady as a percentage of sales during the period between 1968 and 1978 (after correcting for inflation). But slowdowns in the growth of marketing productivity also occurred during that period, a fact that refutes the notion that the growth of marketing productivity is directly proportional to the amount invested in marketing research.

Which of the following, if true for the United States, most weakens the argument above?

(A) Federal funds, which constituted a significant portion of the support for marketing research
from 1968 to 1978, fell annually and substantially during that period.
(B) The inflation that occurred between 1968 and 1978, was more severe than leading economists had expected.
(C) Marketing executives generally favor investing an appreciably larger portion of corporate funds in short-term product development than in basic research.
(D) The advertisers who worked in marketing from 1968 to 1978 were, as a group more, experienced in their jobs than were those who worked in the marketing industry during the
previous ten-year period
(E) Corporate financing of marketing research increased, in several of the years immediately following 1978 (after correcting for inflation).

This is an example of a causal argument.
Premise-The investment in market research has been steady by the private firms during a perticular period still the market productivity has gone down in that preriod.
Author's Conclusion - The notion that the investment in market reasearch in proportional to the market productivity did not hold true for that period.

Here, we need to bring in one more cause which can support the dilution in market productivity so that the conclusion can not stand valid.
The first choice introduces a new cause that shortened the funds invested into market research keeping the investments from private firms steady and hence the notion that martket research is a direct function of investment holds true (because the total funds invested into market research are lesser so the diminising market productivity is expected accroding to the notion that productivity is proportional to investment in research => that notion still holds true contary to the author's conclusion). And at the same time, the autor's conclustion is undermined.
Hence the correct answer is (A)
Manager
Joined: 07 Jun 2009
Posts: 207
Re: financing of marketing research [#permalink]

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25 Oct 2010, 11:37
I go for A too..
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Senior Manager
Joined: 23 May 2010
Posts: 426
Re: financing of marketing research [#permalink]

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26 Oct 2010, 20:33
syog wrote:
feruz77 wrote:
In the United States financing of marketing research by private firms remained steady as a percentage of sales during the period between 1968 and 1978 (after correcting for inflation). But slowdowns in the growth of marketing productivity also occurred during that period, a fact that refutes the notion that the growth of marketing productivity is directly proportional to the amount invested in marketing research.

Which of the following, if true for the United States, most weakens the argument above?

(A) Federal funds, which constituted a significant portion of the support for marketing research
from 1968 to 1978, fell annually and substantially during that period.
(B) The inflation that occurred between 1968 and 1978, was more severe than leading economists had expected.
(C) Marketing executives generally favor investing an appreciably larger portion of corporate funds in short-term product development than in basic research.
(D) The advertisers who worked in marketing from 1968 to 1978 were, as a group more, experienced in their jobs than were those who worked in the marketing industry during the
previous ten-year period
(E) Corporate financing of marketing research increased, in several of the years immediately following 1978 (after correcting for inflation).

This is an example of a causal argument.
Premise-The investment in market research has been steady by the private firms during a perticular period still the market productivity has gone down in that preriod.
Author's Conclusion - The notion that the investment in market reasearch in proportional to the market productivity did not hold true for that period.

Here, we need to bring in one more cause which can support the dilution in market productivity so that the conclusion can not stand valid.
The first choice introduces a new cause that shortened the funds invested into market research keeping the investments from private firms steady and hence the notion that martket research is a direct function of investment holds true (because the total funds invested into market research are lesser so the diminising market productivity is expected accroding to the notion that productivity is proportional to investment in research => that notion still holds true contary to the author's conclusion). And at the same time, the autor's conclustion is undermined.
Hence the correct answer is (A)

good explanation ! ..I have highlighted the most important word in the first sentence ...PRIVATE investment ...
but productivity is PRIVATE plus FEDERAL ......

(A) Federal funds, which constituted a significant portion of the support for marketing research
from 1968 to 1978, fell annually and substantially during that period

option a A clearly explains the reason of low marketing productivity .....

By the way I picked D ...
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Joined: 16 Nov 2010
Posts: 1663
Location: United States (IN)
Concentration: Strategy, Technology
Re: financing of marketing research [#permalink]

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04 Apr 2011, 01:26
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Joined: 12 Oct 2009
Posts: 265
Re: financing of marketing research [#permalink]

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04 Apr 2011, 16:06
A for sure
Re: financing of marketing research   [#permalink] 04 Apr 2011, 16:06
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