Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

It is currently 28 May 2017, 23:30

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Over the past five years, the price gap between name-brand

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

1 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 12 Mar 2009
Posts: 305
Followers: 3

Kudos [?]: 378 [1] , given: 1

GMAT ToolKit User
Over the past five years, the price gap between name-brand [#permalink]

Show Tags

New post 30 Jun 2009, 23:59
1
This post received
KUDOS
2
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

94% (02:09) correct 6% (02:32) wrong based on 62 sessions

HideShow timer Statistics

Over the past five years, the price gap between name-brand cereals and less expensive store-brand cereals has become so wide that consumers have been switching increasingly to store brands despite the name brands’ reputation for better quality. To attract these consumers back, several manufacturers of name-brand cereals plan to narrow the price gap between their cereals and store brands to less than what it was five years ago.

Which of the following, if true, most seriously calls into question the likelihood that the manufacturers’ plan will succeed in attracting back a large percentage of consumers who have switched to store brands?

(A) There is no significant difference among manufacturers of name-brand cereals in the prices they charge for their products.

(B) Consumers who have switched to store-brand cereals have generally been satisfied with the quality of those cereals.

(C) Many consumers would never think of switching to store-brand cereals because they believe the name brand cereals to be of better quality.

(D) Because of lower advertising costs, stores are able to offer their own brands of cereals at significantly lower prices than those charged for name-brand cereals.

(E) Total annual sales of cereals—including both name-brand and store-brand cereals—have not increased significantly over the past five years.
[Reveal] Spoiler: OA
Request Expert Reply
If you have any questions
you can ask an expert
New!
Manager
Manager
avatar
Joined: 17 Apr 2009
Posts: 153
Followers: 0

Kudos [?]: 21 [0], given: 0

Re: Over the past five years, the price gap between name-brand [#permalink]

Show Tags

New post 15 Jul 2009, 05:50
B looks like the ans.

Because if people are satisfied with the store-brand cereals then there is no reason for them to shift to other brands.Thus any efforts on the part of name-brand cereals manufacturers will go waste.
5 KUDOS received
Director
Director
User avatar
Joined: 01 Apr 2008
Posts: 882
Name: Ronak Amin
Schools: IIM Lucknow (IPMX) - Class of 2014
Followers: 30

Kudos [?]: 707 [5] , given: 18

Re: Over the past five years, the price gap between name-brand [#permalink]

Show Tags

New post 15 Jul 2009, 23:52
5
This post received
KUDOS
yup B.
notice the phrases "to narrow the price gap" and "switching increasingly to store brands despite the name brands’ reputation for better quality".

This implies:
=> price difference will still be there and name brands' cereals will be 'slightly' costlier
=> the only and the most significant difference between the two types is quality.

Hence:
=>the only important factor to think about switching will be quality.

So, if customers are already satisfied with quality then there is no value-addition in switching to name brands.
Senior Manager
Senior Manager
avatar
Status: Yeah well whatever.
Joined: 18 Sep 2009
Posts: 343
Location: United States
GMAT 1: 660 Q42 V39
GMAT 2: 730 Q48 V42
GPA: 3.49
WE: Analyst (Insurance)
Followers: 5

Kudos [?]: 74 [0], given: 17

Re: Over the past five years, the price gap between name-brand [#permalink]

Show Tags

New post 13 May 2010, 13:30
Yeah. Only B makes sense. D is a boobie trap but it has no substance. It doesn't reduce the likelihood of people switching back but if they're satisfied and it's cheaper then why change back?
_________________

He that is in me > he that is in the world. - source 1 John 4:4

Senior Manager
Senior Manager
avatar
Joined: 22 Dec 2011
Posts: 294
Followers: 3

Kudos [?]: 266 [0], given: 32

Over the past five years, the price gap between name-brand [#permalink]

Show Tags

New post 24 Oct 2012, 05:40
Over the past five years, the price gap between name-brand cereals and less expensive store-brand cereals has become so wide that consumers have been switching increasingly to store brands despite the name brands’ reputation for better quality. To attract these consumers back, several manufacturers of name-brand cereals plan to narrow the price gap between their cereals and store brands to less than what it was five years ago.

Which of the following, if true, most seriously calls into question the likelihood that the manufacturers’ plan will succeed in attracting back a large percentage of consumers who have switched to store brands?

(A) There is no significant difference among manufacturers of name-brand cereals in the prices they charge for their products.

(B) Consumers who have switched to store-brand cereals have generally been satisfied with the quality of those cereals.

(C) Many consumers would never think of switching to store-brand cereals because they believe the name brand cereals to be of better quality.

(D) Because of lower advertising costs, stores are able to offer their own brands of cereals at significantly lower prices than those charged for name-brand cereals.

(E) Total annual sales of cereals—including both name-brand and store-brand cereals—have not increased significantly over the past five years.
Senior Manager
Senior Manager
avatar
Joined: 15 Jun 2010
Posts: 361
Schools: IE'14, ISB'14, Kellogg'15
WE 1: 7 Yrs in Automobile (Commercial Vehicle industry)
Followers: 11

Kudos [?]: 399 [0], given: 50

Reviews Badge
Re: Over the past five years, the price gap between name-brand [#permalink]

Show Tags

New post 24 Oct 2012, 06:03
Jp27 wrote:
Over the past five years, the price gap between name-brand cereals and less expensive store-brand cereals has become so wide that consumers have been switching increasingly to store brands despite the name brands’ reputation for better quality. To attract these consumers back, several manufacturers of name-brand cereals plan to narrow the price gap between their cereals and store brands to less than what it was five years ago.

Which of the following, if true, most seriously calls into question the likelihood that the manufacturers’ plan will succeed in attracting back a large percentage of consumers who have switched to store brands?

A. There is no significant difference among manufacturers of name-brand cereals in the prices they charge for their products.
B. Consumers who have switched to store-brand cereals have generally been satisfied with the quality of those cereals.
C. Many consumers would never think of switching to store-brand cereals because they believe the name brand cereals to be of better quality.
D. Because of lower advertising costs, stores are able to offer their own brands of cereals at significantly lower prices than those charged for name-brand cereals.
E. Total annual sales of cereals—including both name-brand and store-brand cereals—have not increased significantly over the past five years.

OA after some discussion....


CDE can be eliminated. None of these has anything to do with the conclusion/argument. Its between A & B.
IMO B. Only B gives us some reason to make the plan less successful.
A seems to contradict with the First premise of the argument.

Hence B.
_________________

Regards
SD
-----------------------------
Press Kudos if you like my post.
Debrief 610-540-580-710(Long Journey): http://gmatclub.com/forum/from-600-540-580-710-finally-achieved-in-4th-attempt-142456.html

VP
VP
avatar
Status: Final Lap Up!!!
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 1083
Location: India
GMAT 1: 410 Q35 V11
GMAT 2: 530 Q44 V20
GMAT 3: 630 Q45 V31
GPA: 3.84
WE: Engineering (Transportation)
Followers: 38

Kudos [?]: 566 [0], given: 70

Re: Over the past five years, the price gap between name-brand [#permalink]

Show Tags

New post 24 Oct 2012, 09:41
I think its straight B.
Nothing is said about the quality of store brand cereals in the argument. Hence its the spot where the option should strike so as to weaken.
BSchool Forum Moderator
User avatar
Status: Flying over the cloud!
Joined: 17 Aug 2011
Posts: 887
Location: Viet Nam
Concentration: International Business, Marketing
GMAT Date: 06-06-2014
GPA: 3.07
Followers: 74

Kudos [?]: 657 [0], given: 44

GMAT ToolKit User Premium Member Reviews Badge
Re: Over the past five years, the price gap between name-brand [#permalink]

Show Tags

New post 24 Oct 2012, 10:50
I thought the correct choice is B, the consumers are too familiar with their consumption habits. So, changing habit is very challenges.
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you :)

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Moderator
Moderator
User avatar
Joined: 02 Jul 2012
Posts: 1223
Location: India
Concentration: Strategy
GMAT 1: 740 Q49 V42
GPA: 3.8
WE: Engineering (Energy and Utilities)
Followers: 124

Kudos [?]: 1489 [0], given: 116

Premium Member
Re: Over the past five years, the price gap between name-brand [#permalink]

Show Tags

New post 24 Oct 2012, 10:53
People were willing to pay a slightly higher price for name brand cereal because they thought that the store brand cereals were of poor quality. If they now feel that store brand cereals are of satisfactory quality, they might nit be willing to pay higher prices even if the difference is small.

Answer should be B

Kudos Please... If you liked my post.
_________________

Did you find this post helpful?... Please let me know through the Kudos button.

Thanks To The Almighty - My GMAT Debrief

GMAT Reading Comprehension: 7 Most Common Passage Types

Current Student
User avatar
Joined: 03 Feb 2013
Posts: 939
Location: India
Concentration: Operations, Strategy
GMAT 1: 760 Q49 V44
GPA: 3.88
WE: Engineering (Computer Software)
Followers: 141

Kudos [?]: 951 [0], given: 547

Reviews Badge
Re: Over the past five years, the price gap between name-brand [#permalink]

Show Tags

New post 06 Sep 2014, 01:02
9. Over the past five years, the price gap between name-brand cereals and less expensive store-brand cereals has become so wide that consumers have been switching increasingly to store brands despite the name brands’ reputation for better quality. To attract these consumers back, several manufacturers of name-brand cereals plan to narrow the price gap between their cereals and store brands to less than what it was five years ago.

Which of the following, if true, most seriously calls into question the likelihood that the manufacturers’ plan will succeed in attracting back a large percentage of consumers who have switched to store brands?

A. There is no significant difference among manufacturers of name-brand cereals in the prices they charge for their products. - OFS as we are not bothered about the prices charged among the name brand cereals.

B. Consumers who have switched to store-brand cereals have generally been satisfied with the quality of those cereals - The customers are already satisfied with the quality of the cereals and they will not come back even if the difference of the price is narrowed - Correct

C. Many consumers would never think of switching to store-brand cereals because they believe the name brand cereals to be of better quality - This is OFS as we are talking about other set of customers

D. Because of lower advertising costs, stores are able to offer their own brands of cereals at significantly lower prices than those charged for name-brand cereals - OFS

E. Total annual sales of cereals—including both name-brand and store-brand cereals—have not increased significantly over the past five years - OFS we are not bothered about the sales
_________________

Thanks,
Kinjal
My Debrief : http://gmatclub.com/forum/hardwork-never-gets-unrewarded-for-ever-189267.html#p1449379
My Application Experience : http://gmatclub.com/forum/hardwork-never-gets-unrewarded-for-ever-189267-40.html#p1516961
Linkedin : https://www.linkedin.com/in/kinjal-das/

Please click on Kudos, if you think the post is helpful

Re: Over the past five years, the price gap between name-brand   [#permalink] 06 Sep 2014, 01:02
    Similar topics Author Replies Last post
Similar
Topics:
Over the past ten years, the population of Dismaston has grown five ti tia2112 0 05 Sep 2015, 00:10
Over the past ten years, the population of Dismiston has grown five ti sid200207 0 05 Nov 2016, 18:41
34 Experts publish their posts in the topic Over the past ten years, the population of Dismaston has grown five ti guerrero25 34 05 Nov 2016, 18:41
5 Over the past twenty-five years the introduction of angel2009 13 07 Nov 2016, 09:40
Over the past five years, the price gap between name-brand vaivish1723 0 25 Jan 2016, 17:40
Display posts from previous: Sort by

Over the past five years, the price gap between name-brand

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.