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Over the last three years, Saticoy Industries has seen

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Joined: 06 Jan 2015
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Concentration: Operations, Finance
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Over the last three years, Saticoy Industries has seen [#permalink]

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New post 25 Jan 2018, 02:22
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A
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Difficulty:

  95% (hard)

Question Stats:

33% (01:43) correct 67% (01:27) wrong based on 147 sessions

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Over the last three years, Saticoy Industries has seen nearly a 50% decrease in revenue from its website. In an effort to increase its single-visit conversion rate, the percentage of site visits that result in a purchase, Saticoy is redesigning its website so that users will never have to scroll in order to reach a checkout link, a redesign that will reduce the number of words on each page by over 60%.

Which of the following is a reason to believe that Saticoy's plan will not reach its goals?

A)The primary reason for Saticoy's sales decline is a dramatic decrease in the number of visitors to its website each month.
B)Respondents to a recent industry survey cited Saticoy's high prices, compared to its competitors, as the most common reason that they left the site without making a purchase.
C)The decline in Saticoy's single-visit conversion rate has been more severe for mobile visitors than for desktop visitors.
D)Saticoy's primary differentiating feature in the marketplace is its detailed descriptions of products.
E)Two of Saticoy's closest competitors have recently seen their website redesigns result in significantly reduced page traffic

[Reveal] Spoiler:
Official Solution:

A critical theme with Plan/Strategy Critical Reasoning questions is that the goal is the key issue (much like the conclusion in a standard Strengthen/Weaken argument). You must pay attention to the specific goal of the plan, which here is:

In an effort to increase its single-visit conversion rate, the percentage of site visits that result in a purchase...

Note that the goal is not to increase sales, or page traffic, or anything else. The goal is specific to conversion rate. This is why choices A and E, each of which deals with overall page traffic - number of visits - but not with conversion rate, are incorrect.

Recognize, also, that "a better plan does not weaken this plan" - another common theme with Plan/Strategy questions. Choice B fits that mold: while a better plan might be to reduce prices, that doesn't mean that this plan can't also help to increase (even if modestly so) conversion rate.

Choice C is incorrect in that it only sheds more light on the statistics in the premise but doesn't offer a reason why this plan wouldn't work. If it's tempting to you, it likely goes back to your desire for "a better plan" (e.g. a plan that emphasizes mobile conversion rate).

Choice D is correct, as it gives a reason that the plan might not work: if Saticoy reduces the amount of text on each page, it may be losing one of its main selling points, which is its detailed product descriptions - a big driver of Saticoy sales is the very text that it is looking to remove.
[Reveal] Spoiler: OA

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Re: Over the last three years, Saticoy Industries has seen [#permalink]

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New post 25 Jan 2018, 04:56
Its D ..we are talking about conversion rate(people who visited n purchased item) not number of ppl visiting the page.
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New post 27 Jan 2018, 04:29
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For me the answer should be B . If saticoy's prices are higher than its competitors then no matter what measures they take their plan will fail

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New post 27 Jan 2018, 07:40
It is either B) or D)

Not B) because the scenario listed in B) can still lead to an increase in conversion rate.Please note that the words "the most common reason" is NOT THE SAME AS "the only reason".

D) is correct though there could have been a better answer.For D) to be correct we have to assume that reducing 60% of the words leads to a reduction in description.Now how far is that a straightforward assumption I do not know. Some moderator please chip in.....
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Re: Over the last three years, Saticoy Industries has seen [#permalink]

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New post 28 Jan 2018, 03:45
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No one said high prices was the only reason. you have a solution to a problem that doesn't address its major cause. B is definitely a superior answer to D. reducing the number of words by 60% may not necessarily lead to reduction in the description of the product... off the top of my head, ads and reviews could comprise 60% of the words on a page. not a well thought-out question.
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Re: Over the last three years, Saticoy Industries has seen [#permalink]

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New post 28 Jan 2018, 08:28
jaytomrob wrote:
No one said high prices was the only reason. you have a solution to a problem that doesn't address its major cause. B is definitely a superior answer to D. reducing the number of words by 60% may not necessarily lead to reduction in the description of the product... off the top of my head, ads and reviews could comprise 60% of the words on a page. not a well thought-out question.

I agree with the highlighted part of jaytomrob's post. This is an important point that has the potential to make the OA a debatable one.
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Re: Over the last three years, Saticoy Industries has seen   [#permalink] 28 Jan 2018, 08:28
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