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# KAKASHKA

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SVP
Joined: 03 Feb 2003
Posts: 1603
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24 Jun 2003, 06:00
The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position. Therefore, either increasing the quality or lowering the price of a given product will increase the likelihood that consumer will select that product rather than a competing one.

Which of the following, if true, would most strengthen the conclusion drawn above?

(A) It is possible to increase both the quality and the price of a product without changing its competitive position.
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
(C) Competing products often try to appeal to different segments of the population of consumers.
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
(E) Consumers' perceptions of the quality of a product are based on the actual quality of the product.
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Manager
Joined: 11 Jun 2003
Posts: 72
Location: Moscow, Russia
Followers: 1

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25 Jun 2003, 01:17
stolyar wrote:
The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position. Therefore, either increasing the quality or lowering the price of a given product will increase the likelihood that consumer will select that product rather than a competing one.

Which of the following, if true, would most strengthen the conclusion drawn above?

(A) It is possible to increase both the quality and the price of a product without changing its competitive position.
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
(C) Competing products often try to appeal to different segments of the population of consumers.
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
(E) Consumers' perceptions of the quality of a product are based on the actual quality of the product.

I would vote for E

Is it right?
Intern
Joined: 07 May 2003
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25 Jun 2003, 07:21
E?
Manager
Joined: 18 Jun 2003
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Location: Hockeytown
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25 Jun 2003, 11:07
Founder
Affiliations: AS - Gold, HH-Diamond
Joined: 04 Dec 2002
Posts: 14633
Location: United States (WA)
GMAT 1: 750 Q49 V42
GPA: 3.5
Followers: 3830

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25 Jun 2003, 21:11
25 Jun 2003, 21:11
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