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Over the last three years, Saticoy Industries has seen nearly a 50% de

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Over the last three years, Saticoy Industries has seen nearly a 50% de  [#permalink]

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New post Updated on: 09 May 2018, 01:48
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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

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Originally posted by NandishSS on 25 Jan 2018, 03:22.
Last edited by Bunuel on 09 May 2018, 01:48, edited 1 time in total.
Renamed the topic and edited the question.
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Re: Over the last three years, Saticoy Industries has seen nearly a 50% de  [#permalink]

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New post 03 Apr 2018, 04:49
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premise: SI facing decrease of revenue from its website.
Conclusion : So they redesigning the website, such a way that that users will never have to scroll in order to reach a checkout link. this means previously checkout link was very down the page.
Approach of redesign : reduce the number of words on each page by over 60%.

What to achieve? : Saticoy's plan will not reach its goals. means it will not achieve increase of revenue from its website.

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.--- may be user will increase may be not, may be user will increase but they will not checkout. too much to assume here for this choice to be true.
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. ---- previously S has high prices, and this has not changes yet. could be the answer. definitely better then A.
C)The decline in Saticoy's single-visit conversion rate has been more severe for mobile visitors than for desktop visitors. ---- mobile vs desktop was never the issue for us.
D)Saticoy's primary differentiating feature in the marketplace is its detailed descriptions of products. ---- if this is really an impressive thing then ppl would have some and purchase even before redesigning. now also it will happen in the same manner. means S need to make something else as primary differentiating feature.
E)Two of Saticoy's closest competitors have recently seen their website redesigns result in significantly reduced page traffic --- this has nothing to do with

So B and D both can be the answer in first go. lets try to eliminate one. What was the goal again. let see the following line again "In an effort to increase its single-visit conversion rate" So goal is increase conversion rate. if people come to site for detail description and by removing so much text, it removed its USP, conversion rate will decrease not increase, cause it is the main cause for the sale. While in B, well price is already high. redesign will not impact as everyone know about it.
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Re: Over the last three years, Saticoy Industries has seen nearly a 50% de  [#permalink]

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New post 25 Jan 2018, 05:56
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, 05:29
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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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Re: Over the last three years, Saticoy Industries has seen nearly a 50% de  [#permalink]

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New post 27 Jan 2018, 08:40
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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 nearly a 50% de  [#permalink]

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New post 28 Jan 2018, 04:45
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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 nearly a 50% de  [#permalink]

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New post 28 Jan 2018, 09:28
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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New post 01 Mar 2018, 06:48
D says that the descriptions are the differentiating feature. Can we assume that this feature was giving the success all these days?? it might just be the differentiating feature with no contribution to sales.
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Re: Over the last three years, Saticoy Industries has seen nearly a 50% de  [#permalink]

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New post 09 May 2018, 01:48
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NandishSS wrote:
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


VERITAS PREP 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.
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Re: Over the last three years, Saticoy Industries has seen nearly a 50% de  [#permalink]

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New post 05 Nov 2019, 10:44
Dear experts,
Please clarify the exact reason behind option D being a better choice than option B.

My understanding-
Option B - the statement says that the price difference was the most common reason. We can consider that, say, 80% respondents considered price to be major deterrent. That leaves 20% of the rest to still be influenced by the changes. Hence, there is a chance of positive change in conversion rate

Option D - Primary feature is detailed description. 60% - reduction by more than half. But does it guarantee a reduction in details. There is still a case, that words are replaced by diagrams/charts/tables - this would reduce the number of words and still keep the details intact. Hence, there is a possibility that the conversion rate has not improved
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Over the last three years, Saticoy Industries has seen nearly a 50% de  [#permalink]

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New post 07 Dec 2019, 06:17
Okay, let's take this baby down. Many of the responses in this forum focus on isolated pieces of this question, but I think it might be beneficial to do a full analysis, focusing on the critical-thinking strategies that unlock problems like these. As you study for the GMAT, it is very beneficial to identify patterns and strategies useful for multiple questions, not just one. Here is the full "GMAT Jujitsu" for this question:

Our first item of business is to recognize the problem type. The question stem asks for a reason why "Saticoy's plan will not reach its goals." While this sounds like a traditional "Weaken" question, it is a weaken question with a twist: instead of weakening a conclusion, we are weakening a plan. This changes our strategy a little bit.

There is a large logical gap here, related to the fallacy "Correlation is Not Causation." Even though Saticoy Industries wants to increase its "single-visit conversion rate," there is no evidence that redesigning its website by reducing the number of words on a page will affect this rate. (For example, what if nobody cares where the check-out link is? There is no way to tell given the limited facts in the question!) If we can find an answer that shows such a change won't affect the single-visit conversion rate, we have our answer. Let's analyze each answer choice.

Quote:
A) The primary reason for Saticoy's sales decline is a dramatic decrease in the number of visitors to its website each month.
Answer choice “A” doesn't focus on the correct logical gap. We are trying to find an answer that weakens the link between reducing webpage content and single-visit conversion rate. "Number of visitors" is not the same thing. “A” can be easily eliminated.

Quote:
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.
Answer choice “B” is a beautifully crafted trap. It baits you into focusing on the wrong thing, a logical fallacy I call in my classes a "Distracting Detour." It's kind of like "moving the goalposts." While “B” indicates that Saticoy's high prices affect whether a customer will make a purchase, our job in this problem is to focus on the apparent logical disconnect between reducing the number of words on a webpage and the single-visit conversion rate. Think about it: even if price DOES negatively affect whether a customer will purchase an item, is it possible that reducing website content would still INCREASE the single-visit conversion rate? In fact, if you think about it, with a "single visit" it is possible that visitors to Saticoy's website might not even be aware of price differences across the market. Hinting that an alternative plan might do a better job (such as reducing prices) still doesn't logically undermine the existing plan. You need to focus on the correct logical gap. (Incidentally, the "better-plan-doesn't-weaken-the-existing-plan" fallacy is a common trap in Plan/Strategy questions on the GMAT.)

Quote:
C) The decline in Saticoy's single-visit conversion rate has been more severe for mobile visitors than for desktop visitors.
Answer choice “C” contains interesting context, but doesn't undermine the logical gap. This one is also easy to eliminate.

Quote:
D) Saticoy's primary differentiating feature in the marketplace is its detailed descriptions of products.
Now, at first glance, answer choice “D” is a weak sauce answer. We technically don't know if the proposed 60% content reduction even affects the detailed description of Saticoy's products. However -- and this is crucial for those of you taking the GMAT -- "Strengthen" and "Weaken" questions on the GMAT aren't "Unequivocally Prove" or "Annihilate the Logic" questions. Answer choice “Ddoes indicate that the proposed plan could have problems, since (1) detailed product descriptions Saticoy's are differentiating feature and (2) the proposed change could potentially eliminate that feature. If all of the other answer choices fail to focus on the assumed causal link between reducing the number of words on a webpage and the single-visit conversion rate, then this answer -- as weak as it is -- still works. I naturally want something stronger. If this question showed up on my GMAT, I would reserve judgement on “D” until I looked at the other answer choices.

Quote:
E) Two of Saticoy's closest competitors have recently seen their website redesigns result in significantly reduced page traffic
Answer choice “E” is also completely irrelevant to the logical gap. Reduced "page traffic" is not the same thing as "single-visit conversion rate." Additionally, it never tells us HOW Saticoy's competitors redesigned their websites. The redesigns could have been simply changes in color schemes! “E” doesn't focus on the right thing. We can quickly eliminate it.

In the end, only one answer choice even gets us close to undermining the assumed causal link between reducing the number of words on a webpage and the single-visit conversion rate. Four of the five answer choices focus on something other than the logical gap. They can be eliminated. Only one answer is left over. And it is total weak sauce. This is what I call in my classes a "Directional Nudge." With Strengthen and Weaken questions, test takers often look for an answer so perfect that Aristotle himself rises from the grave and gives them a round of applause. But that approach is a deliberate trap in many GMAT questions. Don't fall for it. You just need the answer choice that correctly "Minds the Gap" in the best possible way. And "D" is the only one that does the job.
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Over the last three years, Saticoy Industries has seen nearly a 50% de   [#permalink] 07 Dec 2019, 06:17
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