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Much research has been devoted to investigating what motivates consu

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OG 2017 New RC
Line
    Much research has been devoted to investigating
    what motivates consumers to try new products.
    Previous consumer research suggests that both the
    price of a new product and the way it is advertised
(5)
    affect consumers’ perceptions of the product’s
    performance risk (the possibility that the product will
    not function as consumers expect and/or will not
    provide the desired benefits). Some of this research
    has concluded that a relatively high price will reduce
(10)
    a consumer’s perception of the performance risk
    associated with purchasing a particular product,
    while other studies have reported that price has little
    or no effect on perceived performance risk. These
    conflicting findings may simply be due to the nature
(15)
    of product advertisements: a recent study indicates
    that the presentation of an advertised message has a
    marked effect on the relationship between price and
    perceived performance risk.

    Researchers have identified consumers’ perception
(20)
    of the credibility of the source of an advertised
    message—i.e., the manufacturer—as another factor
    affecting perceived performance risk: one study
    found that the greater the source credibility, the lower
    the consumer’s perception of the risk of purchasing
(25)
    an advertised new product. However, past research
    suggests that the relationship between source
    credibility and perceived performance risk may be
    more complex: source credibility may interact with
    price in a subtle way to affect consumers’ judgments
(30)
    of the performance risk associated with an advertised
    product.
(Book Question: 415)
According to the passage, the studies referred to in line 12 reported which of the following about the effect of price on consumers’ perception of the performance risk associated with a new product?

A. Although most consumers regard price as an important factor, their perception of the performance risk associated with a new product is ultimately determined by the manufacturer’s reputation.

B. Price interacts with the presentation of an advertised message to affect perceived performance risk.

C. Price does not significantly affect consumers’ perception of the performance risk associated with a new product.

D. Consumers tend to regard price as more important than the manufacturer’s credibility when they are buying from that manufacturer for the first time.

E. Consumers are generally less concerned about a new product’s performance risk when that product is relatively expensive.

[Reveal] Spoiler:
C

(Book Question: 416)
The “past research” mentioned in line 25 suggests which of the following about perceived performance risk?

A. The more expensive a new product is, the more likely consumers may be to credit advertised claims about that product.

B. The more familiar consumers are with a particular manufacturer, the more willing they may be to assume some risk in the purchase of a new product being advertised by that manufacturer.

C. Consumers’ perception of the performance risk associated with a new product being advertised may be influenced by an interplay between the product’s price and the manufacturer’s credibility.

D. Consumers may be more likely to believe that a product will function as it is advertised to do when they have bought products from a particular manufacturer before.

E. The price of a particular advertised product may have less impact than the manufacturer’s credibility on consumers’ assessment of the performance risk associated with that product.

[Reveal] Spoiler:
C

(Book Question: 417)
The passage is primarily concerned with

A. challenging the implications of previous research into why consumers try new products

B. suggesting new marketing strategies for attracting consumers to new products

C. reconciling two different views about the effect of price on consumers’ willingness to try new products

D. describing a new approach to researching why consumers try new products

E. discussing certain findings regarding why consumers try new products

[Reveal] Spoiler:
E

(Book Question: 418)
Which of the following, if true, would most tend to weaken the conclusions drawn from “some of this research” (see line 8)?

A. In a subsequent study, consumers who were asked to evaluate new products with relatively low prices had the same perception of the products’ performance risk as did consumers who were shown the same products priced more expensively.

B. In a subsequent study, the quality of the advertising for the products that consumers perceived as having a lower performance risk was relatively high, while the quality of the advertising for the products that consumers perceived as having a higher performance risk was relatively poor.

C. In a subsequent study, the products that consumers perceived as having a lower performance risk were priced higher than the highest priced products in the previous research.

D. None of the consumers involved in this research had ever before bought products from the manufacturers involved in the research.

E. Researchers found that the higher the source credibility for a product, the more consumers were willing to pay for it.


[Reveal] Spoiler:
A

[Reveal] Spoiler: Question #1 OA
[Reveal] Spoiler: Question #2 OA
[Reveal] Spoiler: Question #3 OA
[Reveal] Spoiler: Question #4 OA

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Last edited by hazelnut on 12 Oct 2017, 22:32, edited 2 times in total.
Edited the question.

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New post 28 Jul 2016, 08:42
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9 mins.All correct. let me know if there are any queries.
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New post 16 Aug 2016, 07:34
Much research has been devoted to investigating
what motivates consumers to try new products.
Previous consumer research suggests that both the
price of a new product and the way it is advertised
affect consumers’ perceptions of the product’s
performance risk (the possibility that the product will
not function as consumers expect and/or will not
provide the desired benefits). Some of this research
has concluded that a relatively high price will reduce
a consumer’s perception of the performance risk
associated with purchasing a particular product,
while other studies have reported that price has little
or no effect on perceived performance risk. These
conflicting findings may simply be due to the nature
of product advertisements:
a recent study indicates
that the presentation of an advertised message has a
marked effect on the relationship between price and
perceived performance risk.
Researchers have identified consumers’ perception
of the credibility of the source of an advertised
message—i.e., the manufacturer—as another factor
affecting perceived performance risk: one study
found that the greater the source credibility, the lower
the consumer’s perception of the risk of purchasing
an advertised new product. However, past research
suggests that the relationship between source
credibility and perceived performance risk may be
more complex: source credibility may interact with
price in a subtle way to affect consumers’ judgments
of the performance risk associated with an advertised
product.

_____________

**Can anyone please confirm if there is any opinion in this passage? I consider the highlighted part as an opinion by the passage JarvisR MBAPrepCoach @

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Re: Much research has been devoted to investigating what motivates consu [#permalink]

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New post 04 Sep 2016, 10:04
Keats wrote:
Much research has been devoted to investigating
what motivates consumers to try new products.
Previous consumer research suggests that both the
price of a new product and the way it is advertised
affect consumers’ perceptions of the product’s
performance risk (the possibility that the product will
not function as consumers expect and/or will not
provide the desired benefits). Some of this research
has concluded that a relatively high price will reduce
a consumer’s perception of the performance risk
associated with purchasing a particular product,
while other studies have reported that price has little
or no effect on perceived performance risk. These
conflicting findings may simply be due to the nature
of product advertisements:
a recent study indicates
that the presentation of an advertised message has a
marked effect on the relationship between price and
perceived performance risk.
Researchers have identified consumers’ perception
of the credibility of the source of an advertised
message—i.e., the manufacturer—as another factor
affecting perceived performance risk: one study
found that the greater the source credibility, the lower
the consumer’s perception of the risk of purchasing
an advertised new product. However, past research
suggests that the relationship between source
credibility and perceived performance risk may be
more complex: source credibility may interact with
price in a subtle way to affect consumers’ judgments
of the performance risk associated with an advertised
product.

_____________

**Can anyone please confirm if there is any opinion in this passage? I consider the highlighted part as an opinion by the passage JarvisR MBAPrepCoach @

In the highlighted text, the author is trying to resolve the conflict, using the result of another study.
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New post 14 Dec 2016, 00:45
6:30 on the timer.
All correct
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New post 29 Jun 2017, 02:20
Hello GMATNinja, experts, and members

I have been working on RC passages for some time now but my accuracy is stuck between 30% to 50%. I need your advice on how to improve my RC notes and how to increase my accuracy in RC passages.

Passage notes:
Passage 1: Research: What motivates consumers to try new products.

Previous research: *Price and *How it's advertised (*important )
These two shape the perception.

Greater price = lesser perception of risk

While (contrast): other research - Price not that important
Reason: Nature of product ads.

Passage 2: One more factor: Manufacturer
However (contrast)- Past research says this relationship is more complex.


415. C
416. C
417. C
418. B


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New post 08 Jul 2017, 05:11
All correct in 8 minutes. :-D

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New post 26 Jul 2017, 05:36
Experts please advise why answer choice E is incorrect in Question 1.
The meaning of the answer choices C & E are same...
E says consumers are less concerned about risk when the price of product is high which is given in the passage "high price will reduce
a consumer’s perception of the performance risk associated with purchasing a particular product"

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New post 28 Jul 2017, 22:25

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New post 30 Jul 2017, 08:33
JarvisR wrote:
9 mins.All correct. let me know if there are any queries.


could you explain why not E in the first question?

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New post 30 Jul 2017, 08:37
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Good RC, took me around 8 mins to understand and solve

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New post 31 Jul 2017, 18:13
Passage wrote:
    ...provide the desired benefits). Some of this research
    has concluded that a relatively high price will reduce
(10)
    a consumer’s perception of the performance risk
    associated with purchasing a particular product,
    while other studies have reported that price has little
    or no effect on perceived performance risk.
    These
    conflicting findings may simply be due to the nature


Q: According to the passage, the studies referred to in line 12reported which of the following about the effect of price on consumers’ perception of the performance risk associated with a new product?

The study being referred to explains: Price has little or no effect on perceived risk. This means, price may have effect or may not, and if it does have effect, then it is not more than little. That is the effect of price in risk perception is not significant enough to take into consideration.

With this understanding:

tapasgupta wrote:
Experts please advise why answer choice E is incorrect in Question 1.
The meaning of the answer choices C & E are same...
E says consumers are less concerned about risk when the price of product is high which is given in the passage "high price will reduce
a consumer’s perception of the performance risk associated with purchasing a particular product"


Firstly, both C and E do not mean the same.

C. Price does not significantly affect consumers’ perception of the performance risk associated with a new product. This is what we discussed above in passage understanding stage. This is correct
E. Consumers are generally less concerned about a new product’s performance risk when that product is relatively expensive.So where is it mentioned that consumers are generally less concerned when the product is expensive? passage says that consumers are generally less concerned about performance risk, no matter what the price is as price plays little role in building that perception. Study in line 12 doesn't talk about expensive or cheap products.

Secondly, the sentence you referring to "high price will reduce.." is line 9. You are simply looking into wrong line and therefore, wrong study.

I hope I helped :)

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New post 31 Jul 2017, 18:19
achira wrote:
JarvisR wrote:
9 mins.All correct. let me know if there are any queries.


could you explain why not E in the first question?


The study in line 12 says: Price has little or no effect on perceived risk. Price may or may not have effect on perceived risk, and if it does have effect, then it is little. That is the effect of price in risk perception is not significant enough to take into consideration.
This effectively implies that the price of the product, expensive or cheap, doesn't really matter to the consumer. But E contradicts this by saying Expensive products are generally considered less concerning by the consumers.

E says:
Consumers are generally less concerned about a new product’s performance risk when that product is relatively expensive
We can't conclude whether consumers are less concerned when the product is expensive.

Cleared the doubt?
Hope I was of some help :)

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New post 25 Nov 2017, 16:32
I have taken 2mins to read, comprehend and write the point of the passage.

I took
135secs- 1st Q - Wrong
110secs- 2nd Q - Right
80secs-3nd Q - Right
130secs-4th Q -Right

This is how I solved this Qs

Q1: I did this wrong, so below is the analysis of my research.

This is a specific Question. To solve any specific Question, there is a clean two-step process exists IMO
Step1: Know the context: It points out line #12. After reading What I comprehend is that other studies claim that Price has nothing to do with perceived performance risk. Simple and sweet.

Step2: Match step1's comprehension with answer choices
A- Nowhere in the entire passage that I read there is something about reputation, I read something about credibility, but nothing about reputation. Moreover, this is no way related to context given by the Q - Eliminated
B- Note. 'Presentation' is at the end of the passage. No related to the context - Eliminated
D- 'Credibility' game is in the second paragraph. - Eliminated

Devil options: C Vs D:
C-This choice matches my comprehension. - Correct
E- This is a sucker answer for people who won't follow rules. If you read only Line#12, you can directly tell is not that is in context. But Sophomaniac like me read line #11 and ticks this the right answer. BUT this is a right answer to a different Q.

Take away: Even Q gives a clear context to search in the passage, always stick to the context.

Q2: This is Specific Q again
Step1: Reading the line #25 and I can understand that (Source Credibility + Price ) --- Effect--> Consumer's perception
Step2: Hunting time:

A- It is a crap choice because it is mixing the relation by saying Price---Push---Consumer--->Credit the advertised product -Eliminated
B- See this choice tells that knowing manufacturer---> Consumer's perception. Two things to see, there is a Price component missing in the equation and moreover test maker make a trap by implying Familiar = credibility, which is not. Everyone knows apple but not all think it is a credible branch.
C- Well it tells exactly the step1's comprehension - So, it is correct
D- it is some way some as B, familiar --> Consumer's perception -- Eliminated
E- it says that Price ---> Consumer's perception - it is missing the Source credibility component in the equation - Kill it



Q3: Primary purpose Q
This is how I play with Primary purpose Q
A- Poor author is challenging on one - Eliminated
B- No author is not suggesting anything, because I didn't read anything of this sort "Do this, Do that, this is better than that, this is bad".No other did not do that-- Eliminated
C- Reconciling views, NO. The author mentioned all the research finding politely but did not reconcile/merge any finding. _ Eliminated
D - All the passage is filled with boring research finding, no approach is discussed - Eliminated
E - See, frankly speaking, I don't find this choice 100% cool. Because it says the discussing findings WHY consumers try new products. While the whole passage speaks about WHAT effects consumers' perception. But it is better than other choices.

Q4: This is the first time I'm seeing a weaken Q in RC. But I love CR Qs all the time.
Context is line #8: it says that Some researchers concluded that if the product is sold at high price, people will be less skeptic about the product. Like everyone feels safe to invest $1000 for an iPhone.
Strategy in Mind: As it is a weaken Q, I have to prove that High price is not a factor in reducing skepticism of a consumer.

A- It says that consumer responded the same way when showed the same product with high price and low price tags - Correct, it will prove that the High price is not a factor in consumers' perception
B- Who the heck is talking about advertising now, out of context. Kill it and move on because we have a better option already in the queue. So you can be little harsh on choices
C- This is kind of supporting the Line#8 - Old school games played by test makers - ELiminated
D- The first word 'NONE' kind of turned on the Red bulb in my head- Too extreme. Moreover, we are talking about perception, no way buying is in the game- Eliminated
E- This is again pointing to buying, which is out of the context - ELiminated.

I hope this analysis help you. If you find anything wrong above, please correct me, LEARNING MATTERS.
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Re: Much research has been devoted to investigating what motivates consu [#permalink]

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New post 01 Dec 2017, 10:35
Time Taken - 11mins 38secs

Got all the questions correct :-) Although consumed a lot of time :(
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Re: Much research has been devoted to investigating what motivates consu   [#permalink] 01 Dec 2017, 10:35
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