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People buy prestige when they buy a premium product. They want to be a

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New post Updated on: 07 Aug 2017, 03:25
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Which of the following best completes the passage below?

People buy prestige when they buy a premium product. They want to be associated with something special. Mass-marketing techniques and price-reduction strategies should not be used because ______.

(A) affluent purchasers currently represent a shrinking portion of the population of all purchasers
(B) continued sales depend directly on the maintenance of an aura of exclusivity
(C) purchasers of premium products are concerned with the quality as well as with the price of the products
(D) expansion of the market niche to include a broader spectrum of consumers will increase profits
(E) manufacturing a premium brand is not necessarily more costly than manufacturing a standard brand of the same product

Originally posted by sagarsabnis on 07 Jan 2010, 14:34.
Last edited by hazelnut on 07 Aug 2017, 03:25, edited 2 times in total.
Added the OA
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New post 07 Jan 2010, 16:21
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sagarsabnis wrote:
Which of the following best completes the passage below?

People buy prestige when they buy a premium product. They want to be associated with something special. Mass-marketing techniques and price-reduction strategies should not be used because______

(A) affluent purchasers currently represent a shrinking portion of the population of all purchasers
(B) continued sales depend directly on the maintenance of an aura of exclusivity
(C) purchasers of premium products are concerned with the quality as well as with the price of the products
(D) expansion of the market niche to include a broader spectrum of consumers will increase profits
(E) manufacturing a premium brand is not necessarily more costly than manufacturing a standard brand of the same product

I got this wrong please can some one help?



Premise 1: People buy prestige when they buy a premium product. They want to be associated with something special.
Premise 2: Mass-marketing techniques and price-reduction strategies are bad

you need to connect how making something more available/affordable negatively affects premise 1. The only one that addresses this is B.

A) doesn't explain mass marketings affect
b) correct
c) doesnt explain how mass marketing can affect sales.
d) this says that mass marketing and price reduction is good --> increases profits.
e) we are not concerned with comparing premium with standard brands.
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New post 08 Jan 2010, 14:13
I am still not clear in fact i am not able to understand option B please can you give it a one more try.
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New post 10 Jan 2010, 17:10
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sagarsabnis wrote:
I am still not clear in fact i am not able to understand option B please can you give it a one more try.


Option B says that we can only maintain current sales levels if the product is perceived as an exclusive luxury brand. Because of this perception, it's more desirable as more people want to own a prestigious brand.

example: BMW is perceived as a luxury brand and hence it sells alot of cars to people that can afford them. If it were to cut its prices, the people that can afford a BMW would no longer desire a BMW, they will go buy a different luxury brand , say a Mercedez Benz.
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New post 11 Jan 2010, 10:56
Its B because it pitches exclusivity and mass production (making it common and not unique)
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New post 01 Jul 2012, 02:03
firasath wrote:
sagarsabnis wrote:
Which of the following best completes the passage below?

People buy prestige when they buy a premium product. They want to be associated with something special. Mass-marketing techniques and price-reduction strategies should not be used because______

(A) affluent purchasers currently represent a shrinking portion of the population of all purchasers
(B) continued sales depend directly on the maintenance of an aura of exclusivity
(C) purchasers of premium products are concerned with the quality as well as with the price of the products
(D) expansion of the market niche to include a broader spectrum of consumers will increase profits
(E) manufacturing a premium brand is not necessarily more costly than manufacturing a standard brand of the same product

I got this wrong please can some one help?



Premise 1: People buy prestige when they buy a premium product. They want to be associated with something special.
Premise 2: Mass-marketing techniques and price-reduction strategies are bad

you need to connect how making something more available/affordable negatively affects premise 1. The only one that addresses this is B.

A) doesn't explain mass marketings affect
b) correct
c) doesnt explain how mass marketing can affect sales.
d) this says that mass marketing and price reduction is good --> increases profits.
e) we are not concerned with comparing premium with standard brands.


Can you explain why C is wrong? Thanks
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New post 01 Jul 2012, 03:17
As firasath correctly noted, C doesnt explain how mass marketing can affect sales. Further "the quality" (mentioned in C) has nothing to do with "Mass-marketing techniques and price-reduction strategies".
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New post 01 Jul 2012, 12:10
(B) continued sales depend directly on the maintenance of an aura of exclusivity (aura of exclusivity makes it the best answer choice)
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New post 01 Jul 2012, 21:27
People buy a premium product ( which is not very common and not everyone is accessible or eligible to buy it ) and therefore they buy prestige ( exclusivity and the pride to own something special) along with the product.
They want to be associated with some special (which is not common to all) such products.

Mass marketing makes a product common,so a large population uses that product,the exclusivity reduces and the prestige vanishes.Price reduction plays an important role, it means that when larger population to consume or buy that product the aura exclusivity of the product vanishes.

(B) has this in it.
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New post 17 May 2013, 23:12
sagarsabnis wrote:
Which of the following best completes the passage below?

People buy prestige when they buy a premium product. They want to be associated with something special. Mass-marketing techniques and price-reduction strategies should not be used because______

(A) affluent purchasers currently represent a shrinking portion of the population of all purchasers
(B) continued sales depend directly on the maintenance of an aura of exclusivity
(C) purchasers of premium products are concerned with the quality as well as with the price of the products
(D) expansion of the market niche to include a broader spectrum of consumers will increase profits
(E) manufacturing a premium brand is not necessarily more costly than manufacturing a standard brand of the same product

I got this wrong please can some one help?


:arrow: The answer is B , but the option C is also close as if I am a premium product buyer I would be concerned with the quality ( which I presume should be the best in the whole world) and the price ( Which has to be high enough to ensure me that every other person cannot afford the product).

:idea: said that, I would also like to add that option C has nothing or very little to do with Mass-marketing techniques and price-reduction strategies as compared to option B. So i would most definitely go with option B
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New post 17 Sep 2013, 00:18
As per MGMAT Topic wise matrix this is a Strengthen questions but as per power score CR it is a assumption ques since it has a "because" in it....
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New post 08 Mar 2016, 08:41
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People buy prestige when they buy a premium product. They want to be associated with something special. Mass-marketing techniques and price-reduction strategies should not be used because______
Premises: People buy prestige when they buy a premium product. They want to be associated with something special.

Conclusion: Mass-marketing techniques and price-reduction strategies should not be used

You need to strengthen this conclusion. So you need to find a link between premises and conclusion first. The reason the author made such a conclusion is that using such techniques and strategy will take away that premium and special factor from the product and buyers of such product will not feel like buying a special and premium product resulting in a loss of sales.

(A) affluent purchasers currently represent a shrinking portion of the population of all purchasers.

if this is the case then this will weaken the conclusion as such techniques may actually improve the customer base.

(B) continued sales depend directly on the maintenance of an aura of exclusivity

This matches our prethinking. Should be the ans.

(C) purchasers of premium products are concerned with the quality as well as with the price of the products

If purchasers of premium products are concerned about price then price reduction may work. This weakens the conclusion somewhat.

(D) expansion of the market niche to include a broader spectrum of consumers will increase profits

But then why are we concluding that price reduction strategies won't work. This is inconsistent with the conclusion.

(E) manufacturing a premium brand is not necessarily more costly than manufacturing a standard brand of the same product

Again inconsistent with the conclusion as this option also doesn't justify such a conclusion.


Ans. B
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New post 21 Jun 2016, 05:11
tarunktuteja wrote:
People buy prestige when they buy a premium product. They want to be associated with something special. Mass-marketing techniques and price-reduction strategies should not be used because______
Premises: People buy prestige when they buy a premium product. They want to be associated with something special.

Conclusion: Mass-marketing techniques and price-reduction strategies should not be used

You need to strengthen this conclusion. So you need to find a link between premises and conclusion first. The reason the author made such a conclusion is that using such techniques and strategy will take away that premium and special factor from the product and buyers of such product will not feel like buying a special and premium product resulting in a loss of sales.

(A) affluent purchasers currently represent a shrinking portion of the population of all purchasers.

if this is the case then this will weaken the conclusion as such techniques may actually improve the customer base.

(B) continued sales depend directly on the maintenance of an aura of exclusivity

This matches our prethinking. Should be the ans.

(C) purchasers of premium products are concerned with the quality as well as with the price of the products

If purchasers of premium products are concerned about price then price reduction may work. This weakens the conclusion somewhat.

(D) expansion of the market niche to include a broader spectrum of consumers will increase profits

But then why are we concluding that price reduction strategies won't work. This is inconsistent with the conclusion.

(E) manufacturing a premium brand is not necessarily more costly than manufacturing a standard brand of the same product

Again inconsistent with the conclusion as this option also doesn't justify such a conclusion.


Ans. B


tarunktuteja
Can you elaborate more on choice A? I see that option A makes sense on completing the blank. Mass-marketing techniques and price-reduction strategies should not be used because affluent purchasers currently represent a shrinking portion of the population of all purchasers.

Mass-marketing techniques are not a match for a shrinking affluent base and price reduction strategy is not suitable for consumers attracted to products by their high prices. So, doesn't this fill the gap perfectly?
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New post Updated on: 06 Aug 2017, 21:31
Which of the following best completes the passage below?

People buy prestige when they buy a premium product. They want to be associated with something special. Mass-marketing techniques and price-reduction strategies should not be used because______

(A) affluent purchasers currently represent a shrinking portion of the population of all purchasers
As per this option, the wealthy purchasers currently represent a small chunk of the entire population of all purchasers. So, it favors the usage of mass-marketing techniques and price-reduction strategies in order to attract more customers who maybe poor or impoverished. This option statement goes against the flow, therefore, is incorrect.

(B) continued sales depend directly on the maintenance of an aura of exclusivity
This option statement goes with the flow of the last statement of the above argument. In order to maintain the aura of exclusivity or prestige of the premium products, the mass-marketing techniques and the price-reduction strategies should be refrained in order to avoid the reach of these premium products to the impoverished mass of people.

(C) purchasers of premium products are concerned with the quality as well as with the price of the products
?ANY EXPLANATION FOR THIS OPTION?

(D) expansion of the market niche to include a broader spectrum of consumers will increase profits
This option statement also goes against the flow of the last statement of the above argument. As per this option, mass-marketing techniques and price-reduction strategies should be used as that will increase profits. So, its beneficial. Hence, this option statement is incorrect.

(E) manufacturing a premium brand is not necessarily more costly than manufacturing a standard brand of the same product.
This option compares the manufacturing costs of a premium brand with a standard brand of the same product. But that is not relevant to why the mass-marketing techniques and price-reduction strategies should not be used.

I am not very clear with the option C, though I picked B as the correct answer. Can someone help me in explaining me why option C is wrong?

Edit : My understanding for option C, purchasers of premium products are concerned with the quality as well as with the price of the products
PURCHASERS OF PREMIUM PRODUCTS (PURCHASERS WHO WANT TO BE ASSOCIATED WITH SOMETHING SPECIAL) ARE CONCERNED WITH -
a. quality of the products - as per my understanding, the quality of those products should be excellent/outstanding, and mass-marketing OR price reduction techniques will result in hampering of the quality only, so such techniques should not be used. so it supports the conclusion
b. price of the products - to maintain the prestige of premium products, the price should be high, thereby proving that the price reduction techniques should be avoided.

Thus, option C also seems to be a good contender for this question. But why is this option wrong. Can someone explain??

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Originally posted by vnigam21 on 06 Aug 2017, 03:39.
Last edited by vnigam21 on 06 Aug 2017, 21:31, edited 2 times in total.
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New post 06 Aug 2017, 04:01
keats wrote:
tarunktuteja wrote:
People buy prestige when they buy a premium product. They want to be associated with something special. Mass-marketing techniques and price-reduction strategies should not be used because______
Premises: People buy prestige when they buy a premium product. They want to be associated with something special.

Conclusion: Mass-marketing techniques and price-reduction strategies should not be used

You need to strengthen this conclusion. So you need to find a link between premises and conclusion first. The reason the author made such a conclusion is that using such techniques and strategy will take away that premium and special factor from the product and buyers of such product will not feel like buying a special and premium product resulting in a loss of sales.

(A) affluent purchasers currently represent a shrinking portion of the population of all purchasers.

if this is the case then this will weaken the conclusion as such techniques may actually improve the customer base.

(B) continued sales depend directly on the maintenance of an aura of exclusivity

This matches our prethinking. Should be the ans.

(C) purchasers of premium products are concerned with the quality as well as with the price of the products

If purchasers of premium products are concerned about price then price reduction may work. This weakens the conclusion somewhat.

(D) expansion of the market niche to include a broader spectrum of consumers will increase profits

But then why are we concluding that price reduction strategies won't work. This is inconsistent with the conclusion.

(E) manufacturing a premium brand is not necessarily more costly than manufacturing a standard brand of the same product

Again inconsistent with the conclusion as this option also doesn't justify such a conclusion.


Ans. B


tarunktuteja
Can you elaborate more on choice A? I see that option A makes sense on completing the blank. Mass-marketing techniques and price-reduction strategies should not be used because affluent purchasers currently represent a shrinking portion of the population of all purchasers.

Mass-marketing techniques are not a match for a shrinking affluent base and price reduction strategy is not suitable for consumers attracted to products by their high prices. So, doesn't this fill the gap perfectly?


Even I agree with you Keats, for the explanation that you have given above. chiranjeev, can you please help in answering this doubt.
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New post 06 Aug 2017, 21:34
I am not very clear with the option C, though I picked B as the correct answer. Can someone help me in explaining me why option C is wrong?

Edit : My understanding for option C, purchasers of premium products are concerned with the quality as well as with the price of the products
PURCHASERS OF PREMIUM PRODUCTS (PURCHASERS WHO WANT TO BE ASSOCIATED WITH SOMETHING SPECIAL) ARE CONCERNED WITH -
a. quality of the products - as per my understanding, the quality of those products should be excellent/outstanding, and mass-marketing OR price reduction techniques will result in hampering of the quality only, so such techniques should not be used. so it supports the conclusion
b. price of the products - to maintain the prestige of premium products, the price should be high, thereby proving that the price reduction techniques should be avoided.

Thus, option C also seems to be a good contender for this question. But why is this option wrong. Can someone explain??
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New post 10 Aug 2017, 02:19
vnigam21 Your explanations for options A, B, D, and E are correct. Option A would be a good contender for the correct choice if it said the opposite i.e. affluent purchasers currently represent a growing portion of the population of all purchasers.

Option C is wrong because neither mass marketing techniques nor price reductions strategies have anything to do with the quality of the product. If you reduce the price of a product, the quality of the product doesn't go down automatically. The "quality" part is what makes this option wrong. The "price" part of option C makes sense in the context of the argument.

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New post 12 Aug 2017, 13:16
Thanks ChiranjeevSingh for the explanation!

To post additional questions not already addressed in this thread, feel free to use the request verbal experts' reply button.
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New post 29 Jul 2018, 04:48
nightblade354 generis KarishmaB pikolo2510 GMATNinja gmatexam439

I have a query regarding explanation by ChiranjeevSingh and would like to share my reasoning for the same.

Quote:
Which of the following best completes the passage below?

People buy prestige when they buy a premium product. They want to be associated with something special. Mass-marketing techniques and price-reduction strategies should not be used because ______.


Premium = Unique
Mass-marketing techniques (MMR) and price-reduction strategies (PRS) would pull sales :thumbdown:
Is above correct inference till this stage?
In PoE I am looking for striking out anything that helps / supports MMR / PRS

Quote:
(A) affluent purchasers currently represent a shrinking portion of the population of all purchasers

This option is discarded since it links PRICE = AFFLUENT (wealthy)
Q stem is against price / mass marketing. Out

Even if affluent purchasers currently represent a growing portion of the population of all purchasers
this rephrase option is against the answer choice.

Quote:
(B) continued sales depend directly on the maintenance of an aura of exclusivity

One key word and you won the game:
EXCLUSIVITY : (recall mutually exclusive events from quant ;) )
Link products that are exclusive with those that are unique and the fits 'fill in the blank' in apt manner

Quote:
(C) purchasers of premium products are concerned with the quality as well as with the price of the products

An over exaggeration of (A). This one links one more parameter that I do not want in pic: quality. OUT

Quote:
(D) expansion of the market niche to include a broader spectrum of consumers will increase profits

Profits , hmm not much sure, but wait more importantly : expansion = mass marketing. Opps that is again opposite
to what I want. OUT.

Quote:
(E) manufacturing a premium brand is not necessarily more costly than manufacturing a standard brand of the same product

Why are we comparing manufacturing cost of standard product and premium one. Out of scope.

Let me know if my reasoning and PoE is correct.
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New post 29 Jul 2018, 06:22
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adkikani,

your explanations look good. I disagree that (A) would be correct if it said wealthy people are a growing sector of their business. It is completely irrelevant, unless the author were to combine (A) and (B). If they are a growing number, it still wouldn't answer the WHY of the question: Why can't we lower prices? I think you were right to question that explanation, so good catch!

Does this help?
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