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# Studio executives carefully examine how a film performs on

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Board of Directors
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Studio executives carefully examine how a film performs on  [#permalink]

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09 Sep 2012, 05:12
5
25
00:00

Difficulty:

95% (hard)

Question Stats:

31% (02:12) correct 69% (02:16) wrong based on 1424 sessions

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Studio executives carefully examine how a film performs on its opening weekend in order to determine whether – and how – to invest more in that film. Many decisions, such as increasing the number of screens that show the film and expanding the marketing campaign, are best made after reaction ca be gathered from audience who actually purchased tickets. Therefore, to maximize returns on their marketing investments, studios should initially release all their films on a small number of screens and with a limited advertising campaign.
The plan to maximize returns by initially releasing films on only a small number of screens and limiting advertising depends on which of the following assumptions?

A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.

B) New advertising technique such as web-based viral marketing, haven’t substantially reduced the average marketing cost for films.

C) A film’s prior performance in noncommercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.

E) How a film performs during its opening weekend is a strong indicator of the film’s financial performance over its lifetime.

OA

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Director
Affiliations: CrackVerbal
Joined: 03 Oct 2013
Posts: 532
Location: India
GMAT 1: 780 Q51 V46
Re: Movie Money  [#permalink]

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01 Sep 2014, 23:30
8
3
Hello Shriti,
A quick tip regarding CR questions.
When it concerns questions that require understanding the assumptions of an argument (Weaken, Strengthen, Assumption) the correct response CAN use words such as "Never", "none", "Most" or "only".

Remember an assumption CAN be an Extreme - exclusionary perspective. NEVER eliminate an option in an assumption based question just because it uses the extreme words.

There is One question type though where you SHOULD watch out with options with extreme / exclusionary words.
That's the inference questions that require you to make an inference based on the data provided. Here option with extreme words are generally wrong!

Hope that clarifies things

Ajeeth Peo
Verbal Trainer - CrackVerbal
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##### General Discussion
Manager
Joined: 23 Aug 2011
Posts: 70
Re: Studio executives carefully examine how a film performs on  [#permalink]

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Updated on: 09 Sep 2012, 12:25
1
I will go with E.

ohh close but good one missed on this completely, The answer will be A.

A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.--this is too strong a statement, if this assumption were to be correct then there would be no point in marketing.
Although it, is strong but it defends the argument.I am at a loss here.

B) New advertising technique such as web-based viral marketing, haven’t substantially reduced the average marketing cost for films. --- it just talks about a type of marketing, no relation what so ever with conclusion.

C) A film’s prior performance in noncommercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.-irrelevant

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.--This option does not fits in since the argument is about whether to spend in pre-marketing or post-marketing.

E) How a film performs during its opening weekend is a strong indicator of the film’s financial performance over its lifetime.--This seems plausible, fills in the gap that the first weekend is a sure indicator for further investments.
Avantika seems right on this one .Completely missed
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Originally posted by conty911 on 09 Sep 2012, 06:10.
Last edited by conty911 on 09 Sep 2012, 12:25, edited 1 time in total.
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Joined: 10 Jul 2012
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Re: Studio executives carefully examine how a film performs on  [#permalink]

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09 Sep 2012, 12:10
3
Ans: A.
Also, E is explaining the first statement of the question and not providing with any assumption.
Board of Directors
Joined: 01 Sep 2010
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Re: Studio executives carefully examine how a film performs on  [#permalink]

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01 Jan 2013, 03:51
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1
Sorry. I completely forgot this thread Thanks for PVT

OE

Quote:
The correctanswer choiceeliminates an ALTERNATE PATH TO THE SAME END.
According to the argument, all films should be released conservatively, in order to obtain the
greatest return on marketing investments. The rationale given is that audience reactions can only
be properly gathered and interpreted after the opening weekend; these reactions then serve as the
basis for marketing decisions such as expanding the films release. However, the argument ignores
other possible means to achieve the stated goal of maximum returns onmarketing investments.
Specifically, the argument overlooks the impact of marketing decisions that are made before open-
ing weekend, such as the initial number of screens or the initial size of the advertising campaign;
such decisions could influence the results of the opening weekend. In fact, investing a great deal
in marketing before a film opens might be the best way to generate profits, as in the case of block-
busters or of films predicted to collapse after the opening weekend. Note that several of the incor-
rect answers reinforce a conservative attitude toward releasing a film, but none of them are critical
to the validity of the conclusion, and thus none are assumptions upon which the conclusion
depends.
(A) CORRECT. In order to conclude that all films should have limited releases, it must not be pos-
sible for large pre-release marketing spending to lead to the best returns on investment, no mat-
ter what film is considered. Also, check the LEN: large marketing investments made before the
opening weekerid could eventually yield greater profits than small initial marketing investments.
The author's conclusion would fall apart if this were true.
(B) If marketing costs fell, then releasing films might be less risky. However, the conclusion here is
concerned with how to maximize profits. This choice does not address whether a conservative
release plan is the best method to maximize profits.
(C) This is a tempting choice. A premise in the argument says that reactions from commercial
audiences are the most useful indicators in making marketing decisions. Try the LEN strategy:
performance in non-commercial settings is at least somewhat correlated with how the general
public tends to react. Does this destroy the conclusion? No. The non-commercial audience
reactions could be decendy correlated without being the most useful type of audience
reaction.
(D) The author claims that limited releases are the best means to maximize returns on marketing
investments. In other words, the author is predicting something about the expected return on a
marketing investment. At the same time, the author's conclusion does not logically depend on
whether marketing investments have predictable effects or not.
(E) The opening weekend's results may be a strong indicator of future performance, but that does
not allow us to conclude that the given plan will always result in the best financial returns on a
marketing investment. There may be other, better indicators of future performance.

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Re: Studio executives carefully examine how a film performs on  [#permalink]

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19 Oct 2013, 05:04
1
The key word here are the words 'greater profits' used in A. Once again, I will fixate the importance of reading the entire sentence carefully.
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Studio executives carefully examine how a film performs on  [#permalink]

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02 Sep 2014, 06:46
1
Edited the post to refine the explanation.
Regards.

Conclusion:
to maximize returns on their marketing investments, studios should initially release all their films on a small number of screens and with a limited advertising campaign.

Why?

Premise:
Many decisions, such as increasing the number of screens that show the film and expanding the marketing campaign, are best made after reaction can be gathered from audience who actually purchased tickets.

The plan to maximize returns by initially releasing films on only a small number of screens and limiting advertising depends on which of the following assumptions?
B and C are irrelevant.
To me A & D are close but A wins.

Argument is about when to make investment.Lets start from E and D and then we will come to A.

A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.
Negation:A) Large marketing investments made before the opening weekend yield greater profits than small initial marketing investments.
If that is true then it impacts the conclusion to limit the screening and initial budget.

B) New advertising technique such as web-based viral marketing, haven’t substantially reduced the average marketing cost for films.

C) A film’s prior performance in noncommercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.
>>
#1: We are concerned abt when to invest.This option doesn't mentions that.
#2: Even if there is predictable behavior, does it affect conlusion. We dont know as argument doesnt mention any detail to evaluate that.

E) How a film performs during its opening weekend is a strong indicator of the film’s financial performance over its lifetime.
>> Marked items make the option vulnerable to doubt. Even if its not a strong indicator may be its sufficient to make the final call on investment hence argument doesn't fall.Also lifetime performance is too extreme assumption in regard to make sound investment in starting to gain max profit.
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Studio executives carefully examine how a film performs on  [#permalink]

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15 Nov 2016, 10:15
Good Question!
I was between A & E, and finally choose E. However, E is not only a partial restatement of one of the premises, but also an extreme situation (lifetime) . So A is correcT.

My analysis is below...

Argument Structure
Conc: To maximize R on MK investments, release all films on few screens and with a limited Ads.
P1: Executives examine how a film performs on its opening weekend in order to determine whether – and how – to invest + in film.
P2: Many decisions, (Increasing the number and expanding the MKT), are best made after reaction is gathered from audience who purchased tickets.

Pre-thinking
The author is trying to find the find the assumption behind the conclusion that the best way to maximize Returns on MKT investment would be to release all films and real ease them with limited Ads. Then they examine the performance on the opening weekend and decide the strategy to follow to maximize Returns.
In order to find the assumption I will falsify the conclusion:
In which scenario the release of all films on few screen and with a limited Ads won't help to maximize Returns on MK investments? Well, if you could better maximize the return deciding for a different strategy: large investment in MKT before the release.
So the assumption would we the negation of this scenario: Large investment in MKT before the release of film won't maximize returns on MKT investments.

Options B, C, and D are OFS.

A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments. Correct!
Aligned with pre-thinking. If negated, the resulting scenario will break the conclusion apart.

E) How a film performs during its opening weekend is a strong indicator of the film’s financial performance over its lifetime. Incorrect!
This option is a a partial restatement of P1. Also, assuming that a film performance during its opening weekend is an strong indicator of the film's financial performance over its lifetime is too extreme. This unseated premise is not necessary for the conclusion to be true. The basis of the conclusion is an strategy: that studios should release all their films in a small number of screen and with limited campaign in order to maximize profits. So the assumption should be wether this strategy works. For example, perhaps they release all films in a small number of screen and with limited campaign, resulting in an bad financial performance. This outcome was probably because there was not enough time to market the film and lot of people were not aware of it it. So it doesn't mean that this result would be a strong indicator of a failure over the film's lifetime. What if they strongly market the film before the release weekend? More people would be aware, and therefore a lot of people would buy tickets.

Hope it helps!
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Re: Studio executives carefully examine how a film performs on  [#permalink]

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01 Dec 2016, 06:32
Premise: Studio executives carefully examine how a film performs on its opening weekend in order to determine whether – and how – to invest more in that film.
Premise: Many decisions, such as increasing the number of screens that show the film and expanding the marketing campaign, are best made after reaction can be gathered from audience who actually purchased tickets.
Conclusion: Therefore, to maximize returns on their marketing investments, studios should initially release all their films on a small number of screens and with a limited advertising campaign.

-Opening weekend is important to understand further investments.
-Release all the films on SMALL NUMBER OF SCREENS WITH LIMITED AD CAMPAIGN

The author assumes that:
1) These small number of screens would give appropriate information that would help determine the investment
2) Target group would be informed with limited ad campaign
Let’s look at the choices:
A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.
This is the correct choice.
Negated statement: Large marketing investments made before he opening weekend eventually yield greater profits than small initial marketing investments.
Then why even focus on small number of screens and limited investments ?

B) New advertising technique such as web-based viral marketing, haven’t substantially reduced the average marketing cost for films.
OUT OF SCOPE

C) A film’s prior performance in non-commercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.
OUT OF SCOPE

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.
If that is so, the argument falls apart because it states that marketing investments do not influence the financial returns. Incorrect.

E) How a film performs during its opening weekend is a strong indicator of the film’s financial performance over its lifetime.
It is true according to the argument but how does this support the plan of small number of screens and limited ad campaign ?
Incorrect
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Re: Studio executives carefully examine how a film performs on  [#permalink]

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08 Jul 2018, 11:34
Assumption - Methodology

1. Gather logic and Conclusion
2. Pre-think - why it will be true
3. Remove irrelevant options
4. If left with 2- see which one is already present in passage
5. Negation technique

Here Pre-think: We will know something useful after running it for few days and we can invest more on based on the info we got

So irrelevant options here B, C & D

We will be left with E & A

E is mentioned in the passage. Assumption is not what is present in passage

A - write answer
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Re: Studio executives carefully examine how a film performs on  [#permalink]

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10 Jul 2018, 09:59
Quote:
Studio executives carefully examine how a film performs on its opening weekend in order to determine whether – and how – to invest more in that film. Many decisions, such as increasing the number of screens that show the film and expanding the marketing campaign, are best made after reaction ca be gathered from audience who actually purchased tickets. Therefore, to maximize returns on their marketing investments, studios should initially release all their films on a small number of screens and with a limited advertising campaign.
The plan to maximize returns by initially releasing films on only a small number of screens and limiting advertising depends on which of the following assumptions?

A) Large marketing investments made before the opening weekend never eventually yield greater profits than small initial marketing investments.

B) New advertising technique such as web-based viral marketing, haven’t substantially reduced the average marketing cost for films.

C) A film’s prior performance in noncommercial settings, such as festivals, is not well correlated with how the general public tends to react to than film.

D) Across the movie industry, marketing investments do not influence the eventual financial returns of films in predictable way.

E) How a film performs during its opening weekend is a strong indicator of the film’s financial performance over its lifetime.

Approach -

1) Eliminate E, related to premise and not to the conclusion.
2) Eliminate D, opposite to the conclusion
3) Eliminate B and C, out of scope

Negating A destroys the argument
Re: Studio executives carefully examine how a film performs on &nbs [#permalink] 10 Jul 2018, 09:59
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# Studio executives carefully examine how a film performs on

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