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505-555 Level|   Business|   Short Passage|                           
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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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Keats
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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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


Thanks
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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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Passage

    ...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
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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JarvisR
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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Question 418 states which would “weaken the conclusions” as in plural conclusions referenced in line 8. Choice A definitely weekend the first conclusion. However the second conclusion in that line states that “studies have reported that price has little or no effect on perceived performance risk”. I don’t see how choice A weakens the second conclusion. Choice seems to be demonstrating exactly what the second conclusion states rather than weakening it.

Posted from my mobile device
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bpdulog
Can someone explain why Q3 is E and not A?

First lets look at the structure of the passage:
Topic: factors affecting y consumers try new products
P1: (the main idea is right in the first sentence) what motivates ppl to try new products
Previous research states sth -> some conclude sth, others report sth else -> Reason to resolve the conflict
P2: another factor - credibility
However, sth
Author's pov: these conflicting findings...
Tone: neutral/indifferent/disinterest

I'm sure B,C,D are easy to be eliminated. Choice A is tempting because it pertains to 'why consumers try new products', but the first part is incorrect because first of all it does not 'challenge' anything, it simply lists down all the research & their findings; secondly the 'implications of previous research' is not mentioned in the passage. Say, if I were to write an outline for this answer, I would begin with introducing the previous research, then their implications and start asking some questions regarding those implications. I would even go further by addressing my point of view that hey I'm not sure your implications are cool enough & blah blah (of course GMAT's tone is mostly neutral, I'm just giving an example :)
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bpdulog
Can someone explain why Q3 is E and not A?

A is Incorrect – Nowhere in the passage have any findings been challenged or questioned, even when there is a conflict between them. Rather the conflict has been explained.

E is correct as the passage discusses the factors as indicated by various researches, that influence a consumer’s decision to try out a new advertised product.
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I am trying to figure out why choice E is not valid on the second question.
The passage says: "source credibility may interact with price in a subtle way to affect consumers’ judgments"
Can it not be inferred that the price is the smaller variable in the equation than the source credibility?
How do you know that this research is telling that price and source credibility are equally responsible?
Choice C would've made a great choice if the passage didn't have the word "subtle".

Does it make sense? Or am I overthinking this?
mikemcgarry GMATNinja ?
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Question 2


sumert
I am trying to figure out why choice E is not valid on the second question.
The passage says: "source credibility may interact with price in a subtle way to affect consumers’ judgments"
Can it not be inferred that the price is the smaller variable in the equation than the source credibility?
How do you know that this research is telling that price and source credibility are equally responsible?
Choice C would've made a great choice if the passage didn't have the word "subtle".

Does it make sense? Or am I overthinking this?
mikemcgarry GMATNinja ?
Take another look at the exact wording of the relevant piece of the passage:
Quote:
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.
From this, we know that the "past research" suggests that two factors (source credibility and price) interact with each other in a "subtle way," and that this interaction affects consumers' judgments about performance risk.

Question #2 asks us what this "past research" suggests about perceived performance risk.

Now take another look at answer choice (E):
Quote:
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.
As explained above, the "past research" shows that source credibility and price interact with each other and that this interaction affects consumers' perception about performance risk. However, it does not suggest that price has less impact than source credibility.

In your analysis, you asked "How do you know that this research is telling that price and source credibility are equally responsible?" We actually don't know that they are equally responsible -- with only the information in the passage, either of the two factors could be more responsible, or they could be equally responsible. However, to eliminate (E) we don't need to prove that they are equally responsible. We just need to show that the "past research" doesn't specifically suggest that price has less impact than the manufacturer's credibility. For this reason, (E) is out.

Let's look at (C):
Quote:
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.
This answer choice closely mirrors the wording in the passage. The word "subtle" in the passage just gives additional information about the exact nature of the interaction between the two factors. The research definitely suggests that consumers' perception of performance risk may be influenced by an interplay between price and the credibility of the manufacturer, so (C) is our answer for question #2.

I hope this helps!
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2:30 mins to read the passage
7 mins to solve overall.
Last question alone took 2 mins to solve
All correct
Still not a great performance from my side
A 30 line passage should take no more than 1:45 to read
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GMATNinja For the question 4, I chose E since I thought that the source credibility for a product is something else (another cause) that reduces a customer's perception of the performance risk associated with purchasing a produce. Hence, this choice could also weaken the conclusion as well. (I assumed that "the more customers were willing to pay for it" means lower performance risk since customer tends to buy a product with lower performance risk.)
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Nonktp
GMATNinja For the question 4, I chose E since I thought that the source credibility for a product is something else (another cause) that reduces a customer's perception of the performance risk associated with purchasing a produce. Hence, this choice could also weaken the conclusion as well. (I assumed that "the more customers were willing to pay for it" means lower performance risk since customer tends to buy a product with lower performance risk.)

Hi Nonktp,

For weakening questions, first try to understand the conclusion that we have to weaken.
Hence refer below statement from passage.

"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."

Now in conclusion we are talking about high price and its effect on consumer perception of performance risk.

Lets look at option D "Researchers found that the higher the source credibility for a product, the more consumers were willing to pay for it."

Source credibility and high price are two different things. Even though source credibility is higher and consumer are willing to pay, we can't conclude on its effect on consumer perception. hence option D is not telling anything.

Look option 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."

Here option A destroys the conclusion completely, if relatively low price and high price have same effect on perception,our conclusion is weakened.

Hope it helps! :)

Now in conclusion we are talking about high price and its effect on consumer perception of performance risk.
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tapasgupta
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"


I believe that there is very subtle meaning difference between C and E.
C talks about the perception of consumer which is clearly stated in the that particular theory whereas E talks about a step ahead, i.e. consumer's concern about buying an expensive product.
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sanjayparihar16 and tapasgupta : My take on the 1st question

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.
--> This is talking about 'price' in general be it 'expensive' or 'less expensive'. So the product being 'expensive' or 'less expensive' does not affect the consumer's view of the product's performance risk.
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.
--> In this answer choice, we really are just talking about consumers being less concerned when that product is 'expensive'. Do we know anything 'about their perception when the product is 'less expensive' from this statement? No. Hence this statement just covers one aspect while ignoring another.
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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.

Hi Experts, help~

The sentence (high price will reduce a consumer’s perception of the performance risk associated with purchasing a particular product)

The phrase (associated with purchasing a particular product) is modifying the noun "perception"?

If i ignore the preposition or phrases altogether. The sentence would become "high price will reduce a consumer’s perception"?

Please help to confirm my understanding. THanks~
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