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# KAKASHKA

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SVP
Joined: 03 Feb 2003
Posts: 1603

Kudos [?]: 308 [0], given: 0

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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.

Kudos [?]: 308 [0], given: 0

Manager
Joined: 11 Jun 2003
Posts: 72

Kudos [?]: [0], given: 0

Location: Moscow, Russia

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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?

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Intern
Joined: 07 May 2003
Posts: 18

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25 Jun 2003, 07:21
E?

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Manager
Joined: 18 Jun 2003
Posts: 141

Kudos [?]: 38 [0], given: 0

Location: Hockeytown

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25 Jun 2003, 11:07

Kudos [?]: 38 [0], given: 0

Founder
Joined: 04 Dec 2002
Posts: 15881

Kudos [?]: 29109 [0], given: 5270

Location: United States (WA)
GMAT 1: 750 Q49 V42

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25 Jun 2003, 21:11

Kudos [?]: 29109 [0], given: 5270

25 Jun 2003, 21:11
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# KAKASHKA

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