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Studies indicate that potential buyers of an expensive product are mor

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Studies indicate that potential buyers of an expensive product are mor  [#permalink]

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New post 29 Aug 2019, 23:42
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Studies indicate that potential buyers of an expensive product are more likely to go through with their purchase if they have first made a purchase of a related product, such as an inexpensive product sold by the same company in the same place. Psychologists attribute this behavior to commitment bias, in which people's present actions are influenced by a desire to act consistently with their past actions. A company that sells expensive products will increase sales of these items by first inducing customers to buy inexpensive, easy-to-sell items.

Which of the following, if true, most strongly supports the interpretation of the studies?

A. The effect noted in the studies applies to purchases made both in person and online.

B. Customers who have already declared their intent to purchase one item from such a company will not act on their intention by purchasing an inexpensive product in place of an expensive product.

C. Not all companies that sell expensive products have inexpensive, easy-to-sell items available to sell.

D. Commitment bias has been found to be equally strong for purchase made by cash and by credit card.

E. The perception that buying an expensive product is consistent with a past purchase of an inexpensive item is strengthened if both of those products prominently feature the same company branding.

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Re: Studies indicate that potential buyers of an expensive product are mor  [#permalink]

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New post 30 Aug 2019, 00:34
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Studies indicate that potential buyers of an expensive product are more likely to go through with their purchase if they have first made a purchase of a related product, such as an inexpensive product sold by the same company in the same place. Psychologists attribute this behavior to commitment bias, in which people's present actions are influenced by a desire to act consistently with their past actions. A company that sells expensive products will increase sales of these items by first inducing customers to buy inexpensive, easy-to-sell items.

Which of the following, if true, most strongly supports the interpretation of the studies?

Let's jot down the points:
studies->PB (potential buyer) -> mostly buy expensive product from same company if purchased inexpensive product earlier from same company and same place, and were satisfied.
Pschos-> commitment bias behavior
btw such companies do this on purpose to increase sales.

A. The effect noted in the studies applies to purchases made both in person and online.
INCORRECT. It doesn't strengthen the argument. it doesn't matter if the sales in offline or online.

B. Customers who have already declared their intent to purchase one item from such a company will not act on their intention by purchasing an inexpensive product in place of an expensive product
CORRECT. If customers are satisfied with the company, they don;t mind buying inexpensive product instead of expensive product and thus, this behavior will help increase sales of the company.

C. Not all companies that sell expensive products have inexpensive, easy-to-sell items available to sell.
INCORRECT. It no way strengthen the argument. Unnecessary information. Out of scope.

D. Commitment bias has been found to be equally strong for purchase made by cash and by credit card.
INCORRECT. A contender. But then it doesn't matter if the sales in done through cash or cc...since people have their preference to one company based on their purchase earlier, they won't mind purchasing from the same company again no matter how. hence, this sentence doesn't strengthen the argument.

E. The perception that buying an expensive product is consistent with a past purchase of an inexpensive item is strengthened if both of those products prominently feature the same company branding.
INCORRECT. this sentence does nothing to strengthen the argument, that is, to increase sales.

IMO answer is option B.
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Re: Studies indicate that potential buyers of an expensive product are mor  [#permalink]

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New post 30 Aug 2019, 05:05
IMO E, because it is in line with the argument that the company will benefit as it says that the perception is strengthened if branding is by the same company.

Studies indicate that potential buyers of an expensive product are more likely to go through with their purchase if they have first made a purchase of a related product, such as an inexpensive product sold by the same company in the same place. Psychologists attribute this behavior to commitment bias, in which people's present actions are influenced by a desire to act consistently with their past actions. A company that sells expensive products will increase sales of these items by first inducing customers to buy inexpensive, easy-to-sell items.

E. The perception that buying an expensive product is consistent with a past purchase of an inexpensive item is strengthened if both of those products prominently feature the same company branding.
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Re: Studies indicate that potential buyers of an expensive product are mor  [#permalink]

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New post 30 Aug 2019, 06:55
Premise: As per the studies people who have bought an inexpensive product might buy an expensive product offered by the same company. Psychologists believe that commitment bias is the reason behind this behavior – people tend to act in ways similar to their past actions.

Conclusion: If a company makes people buy inexpensive product first then it can increase the sales of its expensive products.
A strengthener would support the cause can effect as suggested by the conclusion.

A. The effect noted in the studies applies to purchases made both in person and online. – WRONG. In person and online are two different situation where a person might not be consistent. However, this still looks good assuming that a person shows consistency in buying in person and online, also that product is of same brand.

B. Customers who have already declared their intent to purchase one item from such a company will not act on their intention by purchasing an inexpensive product in place of an expensive product. – WRONG. Exactly opposite to what we seek to establish. Weakens the argument rather.

C. Not all companies that sell expensive products have inexpensive, easy-to-sell items available to sell. – WRONG. Out of scope. We are not concerned or companies that don’t have inexpensive easy-to-sell items.

D. Commitment bias has been found to be equally strong for purchase made by cash and by credit card. – WRONG. A customer might buy an inexpensive product using cash or card and may again buy inexpensive product using cash or card. How does this increases sales of expensive product can’t be established.

E. The perception that buying an expensive product is consistent with a past purchase of an inexpensive item is strengthened if both of those products prominently feature the same company branding. – CORRECT. This option basically says that if branding differs than the perception of buying an expensive product is inconsistent with a past purchase of an inexpensive product. In a way it says if company branding is same then the argument holds true.

Answer (E).
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Re: Studies indicate that potential buyers of an expensive product are mor  [#permalink]

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New post 30 Aug 2019, 16:52
I think its E; if company branding is present than it further solidifies relationship between inexpensive and expensive items;
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Re: Studies indicate that potential buyers of an expensive product are mor  [#permalink]

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New post 31 Aug 2019, 07:28
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Bunuel wrote:

Competition Mode Question



Studies indicate that potential buyers of an expensive product are more likely to go through with their purchase if they have first made a purchase of a related product, such as an inexpensive product sold by the same company in the same place. Psychologists attribute this behavior to commitment bias, in which people's present actions are influenced by a desire to act consistently with their past actions. A company that sells expensive products will increase sales of these items by first inducing customers to buy inexpensive, easy-to-sell items.

Which of the following, if true, most strongly supports the interpretation of the studies?

A. The effect noted in the studies applies to purchases made both in person and online.

B. Customers who have already declared their intent to purchase one item from such a company will not act on their intention by purchasing an inexpensive product in place of an expensive product.

C. Not all companies that sell expensive products have inexpensive, easy-to-sell items available to sell.

D. Commitment bias has been found to be equally strong for purchase made by cash and by credit card.

E. The perception that buying an expensive product is consistent with a past purchase of an inexpensive item is strengthened if both of those products prominently feature the same company branding.


Official Explanation



Reading the question: The argument seems reasonable, which make a question difficult. The question asks us to strengthen this argument, and to do that we're going to have to be tough and weaken it. Supposing that we can't come up with a filter, we can move straight to the answer choices and use the negation test.

Logical proof: Choice (A) doesn't strengthen the argument itself. If we negate (A)--it applies only to in person, for example--sales might still go up somewhat, and the argument could still be true. So (A) is out. (C) doesn't strengthen the argument--it points out a problem. So (C) is not the answer. (D) is similar to (A) and out on similar grounds. (E) is out, which we can confirm by denying it and finding it's not relevant to the argument. That leaves us with (B). Negating (B) gives us: "Customers who have already declared their intent to purchase one item from such a company will act on their intention by purchasing an inexpensive product in place of an expensive product." This statement would mean people who are already committed to buy something buy the little thing, not the big thing. If that's true, that's a huge problem. So establishing the opposite point of the negation, as (B) does, does strengthen the argument.

The correct answer is (B).
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Re: Studies indicate that potential buyers of an expensive product are mor   [#permalink] 31 Aug 2019, 07:28
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