LakerFan24
can any moderator chetan2u, mikemcgarry, GMATNinjaTwo, ziyuen, carcass answer if this is a legit question one can find on the GMAT? i'm having a hard time correlating the "high quality image" with a boost in sales
Dear
LakerFan24,
I'm happy to respond.
My friend, this is something very important appreciate about the old GMAT paper tests--they contain official GMAT material, material that, by psychometric standards, is just as valid as the material on today's tests. See:
GMAT Paper Tests for PracticeIt's also very important to appreciate another subtlety. It's true that specialized knowledge of the topic is not necessary--here, we can't have specialized knowledge of the department stores of Montalia, because Montalia is a fictional place! Nevertheless, students hear this and mistakenly believe that
all outside knowledge is irrelevant. That is 100% false. See:
GMAT Critical Reasoning and Outside KnowledgeIn order to do well on the GMAT CR, it's vitally important to have a "street sense" about economics---what makes some stores successful and others not? What makes some managers effectives and others not? What makes some employees productive and others not? One has to have an excellent real-world sense of the business world. If you don't have this, you need to read the business news daily until you develop it.
Some stores in the real world, such as Dollar Stores, are concerned with selling cheap merchandise at cheap prices---decor is typically not a concern, so sometimes some such stores are labeled as "low-quality." That image apparently doesn't trouble that store's customer base, but may keep away customers more concerned with environment. These stores are nothing more than places to buy stuff for low prices, purely utlitarian: no one would have any other reason to go there.
Other stores in the real world, luxury stores, sell high quality items at very high prices. Typical, the indoor & outdoor presentation of such stores is impeccable--clean, tasteful, refined. The clients who shop at these stores expect this high image as part of their shopping experience. People concerned with bargains would avoid such stores because everything's expensive. These stores are not merely places to get goods: shopping is a form of entertainment for the upper class. A group of wealthy friends may spend an entire afternoon circulating in such an environment, sometimes buying, sometimes eating or sipping latte and talking, etc. Luxury stores have a vested interest in creating an appealing experience for wealthy people, an experience these wealthy people will habitually repeat. For some wealthy people, such shopping trips are their primary form of entertainment and primary social outlet.
All that is real world knowledge one should have, either from one's own experience as a shopper or from one's study of the business world.
Choice (A) says, "
Since most customers associate shopping carts with low-quality discount stores, Jerrod’s high quality image would likely suffer if shopping carts were introduced."
It's unclear whether this association between shopping carts and low quality is borne out in real life, but for the sake of this argument we will assume this is true. Jerrod's, like any high quality luxury store, depends on creating a complete experience for the shopper. If some shoppers store to get the feeling that the shopping carts detract from the high-quality environment, perhaps they will no longer want to spend leisure time there on a habitual basis, and they will take their considerable wealth with them when they depart. Of course, the bargain-hunters who don't care about image still wouldn't come to Jerrod's, because everything is still too expensive. Thus, compromising the high quality image will result in a loss of income.
You don't necessarily need to know this fact, but as a kind of corroboration of this view, I will point out that the name of this fictional store, Jarrod's, is obviously a play on the name of
Harrods, a famous 5-acre luxury store in London. If you are ever in London, spend an afternoon walking around inside Harrods, and you will see much of what I describe above.
The business executive who looks at his company as if it's in a vacuum will fail. Much in the same way, the student who views GMAT CR questions as if they are in a vacuum will perpetually struggle. In the modern electronic business world, everything's connected, and one loses out for neglecting that connection.
Does all this make sense?
Mike