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655-705 (Hard)|   Assumption|                  
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ThatDudeKnows
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Super Express Shipping Company has implemented a new distribution 25 May 2022, 06:58
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Elite097
ThatDudeKnows egmat GMATNinja MartyTargetTestPrep What is choice D doing here and why is it wrong . ALso not clear about C
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The plan is to "encourage sales of its next-day service by intentionally delaying delivery of its two-day packages." Just sales of next-day. The plan doesn't mention total revenues or revenue from next-day compared to two-day.

(C) I believe there are two things that make it possible to eliminate this answer choice. First, there's no assumption about the relative revenues between next-day and two-day. The plan is not to increase total revenue, it is to encourage sales of the next-day service. So why are we now making assumptions about the relative revenues between the two options? Second (probably more important), on plan questions be leery of answer choices that make it sound as though the plan is the only possible plan. There could easily be some other plan that would accomplish the same goal, get you part of the way toward accomplishing the same goal, or perhaps even exceed the same goal.

(D) How would delaying the two-day service impact whether the pricing of the next-day option is too expensive to be attractive to most customers?
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Super Express Shipping Company has implemented a new distribution 25 May 2022, 11:26
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If the overnight service is currently expensiv, then clearly one would need to delay the standard delivery in order for customer to choose the premium delivery and thereby increasing sales of premium delivery so we need to assume that this service is currently too expensive otherwise how will people switch to this service? Naturally ppl who do not want late delivery wll want to pursue this option

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Elite097
ThatDudeKnows egmat GMATNinja MartyTargetTestPrep What is choice D doing here and why is it wrong . ALso not clear about C

The plan is to "encourage sales of its next-day service by intentionally delaying delivery of its two-day packages." Just sales of next-day. The plan doesn't mention total revenues or revenue from next-day compared to two-day.

(C) I believe there are two things that make it possible to eliminate this answer choice. First, there's no assumption about the relative revenues between next-day and two-day. The plan is not to increase total revenue, it is to encourage sales of the next-day service. So why are we now making assumptions about the relative revenues between the two options? Second (probably more important), on plan questions be leery of answer choices that make it sound as though the plan is the only possible plan. There could easily be some other plan that would accomplish the same goal, get you part of the way toward accomplishing the same goal, or perhaps even exceed the same goal.

(D) How would delaying the two-day service impact whether the pricing of the next-day option is too expensive to be attractive to most customers?
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Super Express Shipping Company has implemented a new distribution Updated on: 25 May 2022, 12:39
Originally posted by ThatDudeKnows on 25 May 2022, 11:40.
Last edited by ThatDudeKnows on 25 May 2022, 12:39, edited 1 time in total.
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If the overnight service is currently expensiv, then clearly one would need to delay the standard delivery in order for customer to choose the premium delivery and thereby increasing sales of premium delivery so we need to assume that this service is currently too expensive otherwise how will people switch to this service? Naturally ppl who do not want late delivery wll want to pursue this option

ThatDudeKnows
Elite097
ThatDudeKnows egmat GMATNinja MartyTargetTestPrep What is choice D doing here and why is it wrong . ALso not clear about C

The plan is to "encourage sales of its next-day service by intentionally delaying delivery of its two-day packages." Just sales of next-day. The plan doesn't mention total revenues or revenue from next-day compared to two-day.

(C) I believe there are two things that make it possible to eliminate this answer choice. First, there's no assumption about the relative revenues between next-day and two-day. The plan is not to increase total revenue, it is to encourage sales of the next-day service. So why are we now making assumptions about the relative revenues between the two options? Second (probably more important), on plan questions be leery of answer choices that make it sound as though the plan is the only possible plan. There could easily be some other plan that would accomplish the same goal, get you part of the way toward accomplishing the same goal, or perhaps even exceed the same goal.

(D) How would delaying the two-day service impact whether the pricing of the next-day option is too expensive to be attractive to most customers?
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It doesn't say that next-day is MORE expensive; it says that next-day is TOO expensive. Changing something about another option won't encourage me to buy something that is too expensive.
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Super Express Shipping Company has implemented a new distribution 25 May 2022, 12:27
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I am not sure if i get D. How do we know customers want to save money from the passage? Secondly, what's your point when you say "that customers want to save on expenses is not the same as the idea that the overnight service is "too expensive" for customers"- then what is? Third, why do we need to belive this: "The overnight service does not have to be 'too expensive' for customers in order for it to make sense to believe that customers will use the two-day service to save on expenses". Of course this has to be an assumption otherwise how can we say that they will later start using the premium service when the two day service is delayed

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Elite097
ThatDudeKnows egmat GMATNinja MartyTargetTestPrep What is choice D doing here and why is it wrong . ALso not clear about C
Let's start with (C).

(C) if the plan is not implemented, the company would lose more money in lost sales of overnight deliveries than it would save with its new efficient distribution system.

Now, here's (D).

(D) the overnight service is too expensive to be attractive to most customers currently

This choice has the vibe of explaining why the company would want to delay delivery of two-day packages rather than deliver them in one day. After all, if the company were to deliver the two-day packages in one day, then it's likely that people would use the two-day service because overnight delivery is more expensive. So, the company is assuming that customers take expense into account.

However, notice that the fact idea that customers want to save on expenses is not the same as the idea that the overnight service is "too expensive" for customers. The overnight service does not have to be "too expensive" for customers in order for it to make sense to believe that customers will use the two-day service to save on expenses if they can. So, the company does not have to assume that the overnight service is "too expensive" for most customers in order to conclude that the plan of delaying delivery of the two-day packages makes sense.
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Super Express Shipping Company has implemented a new distribution 25 May 2022, 12:41
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I am not sure if i get D. How do we know customers want to save money from the passage?
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The passage calls the next-day delivery service "its premium next-day delivery service."

A premium service is a service for which the customer pays more, a "premium," for a higher quality service.

Also, the fact that the company would be concerned about sales of the next day service being replaced by sales of its two-day service indicates that the company charges more for the next-day service, meaning that the next day service is more expensive for customers than the two-day service.

We can see that the reason the company is concerned is that it makes sense that customers would choose the two-day service to save money.

Quote:
Secondly, what's your point when you say "that customers want to save on expenses is not the same as the idea that the overnight service is "too expensive" for customers"- then what is?
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The overnight service is MORE expensive. So, the customers can save money by using the two-day service even if the overnight service is not TOO expensive.

"More expensive" means that the customer have to pay more for one than for the other. "Too expensive" means that the customers either cannot afford the overnight service or find the expense so high that it doesn't make sense for them to pay for it. These are two different qualities.

Quote:
Third, why do we need to belive this: "The overnight service does not have to be 'too expensive' for customers in order for it to make sense to believe that customers will use the two-day service to save on expenses". Of course this has to be an assumption otherwise how can we say that they will later start using the premium service when the two day service is delayed.
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The overnight service does not have to be TOO expensive, i.e., unaffordable, for customers to choose to use the two-day service instead. Rather, the overnight service has only to be MORE expensive in order for customers to choose to use the two-day service IF BOTH SERVICES ARE ESSENTIALLY THE SAME because of the new distribution system.
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Super Express Shipping Company has implemented a new distribution 26 May 2022, 10:20
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MartyTargetTestPrep ok so if this choice replaced 'too expensive' with 'more expensive' then it would be correct?


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I am not sure if i get D. How do we know customers want to save money from the passage?
The passage calls the next-day delivery service "its premium next-day delivery service."

A premium service is a service for which the customer pays more, a "premium," for a higher quality service.

Also, the fact that the company would be concerned about sales of the next day service being replaced by sales of its two-day service indicates that the company charges more for the next-day service, meaning that the next day service is more expensive for customers than the two-day service.

We can see that the reason the company is concerned is that it makes sense that customers would choose the two-day service to save money.

Quote:
Secondly, what's your point when you say "that customers want to save on expenses is not the same as the idea that the overnight service is "too expensive" for customers"- then what is?
The overnight service is MORE expensive. So, the customers can save money by using the two-day service even if the overnight service is not TOO expensive.

"More expensive" means that the customer have to pay more for one than for the other. "Too expensive" means that the customers either cannot afford the overnight service or find the expense so high that it doesn't make sense for them to pay for it. These are two different qualities.

Quote:
Third, why do we need to belive this: "The overnight service does not have to be 'too expensive' for customers in order for it to make sense to believe that customers will use the two-day service to save on expenses". Of course this has to be an assumption otherwise how can we say that they will later start using the premium service when the two day service is delayed.
The overnight service does not have to be TOO expensive, i.e., unaffordable, for customers to choose to use the two-day service instead. Rather, the overnight service has only to be MORE expensive in order for customers to choose to use the two-day service IF BOTH SERVICES ARE ESSENTIALLY THE SAME because of the new distribution system.
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Super Express Shipping Company has implemented a new distribution 26 May 2022, 10:25
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ThatDudeKnows so can we say that if the choice said that service is more expensive instead, we could say that changing smething in another option will encourage me to buy something that is more expensive and hence 'more expensive' in this choice would be correct if we replaced 'too expensive'?


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Elite097
ThatDudeKnows egmat GMATNinja MartyTargetTestPrep What is choice D doing here and why is it wrong . ALso not clear about C

It doesn't say that next-day is MORE expensive; it says that next-day is TOO expensive. Changing something about another option won't encourage me to buy something that is too expensive.
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Super Express Shipping Company has implemented a new distribution 26 May 2022, 10:42
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MartyTargetTestPrep ok so if this choice replaced 'too expensive' with 'more expensive' then it would be correct?
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No, for two reasons.

One is that, by calling the overnight service a "premium" service, the passage already implies that it's more expensive. So, by saying that the service is "more expensive," choice (D) would be basically repeating what the passage already indicates.

The more important reason is that the goal of the plan is to "encourage sales of its next-day service by intentionally delaying delivery of its two-day packages."

Notice that, regardless of whether the overnight service is more expensive, the plan of intentionally delaying delivery of two-day packages could encourage customers to use the overnight service.

So, the company's plan does not actually have to assume that the overnight service is more expensive than the two-day service.
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Super Express Shipping Company has implemented a new distribution 26 May 2022, 11:31
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ThatDudeKnows so can we say that if the choice said that service is more expensive instead, we could say that changing smething in another option will encourage me to buy something that is more expensive and hence 'more expensive' in this choice would be correct if we replaced 'too expensive'?


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Elite097
ThatDudeKnows egmat GMATNinja MartyTargetTestPrep What is choice D doing here and why is it wrong . ALso not clear about C

It doesn't say that next-day is MORE expensive; it says that next-day is TOO expensive. Changing something about another option won't encourage me to buy something that is too expensive.
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Perhaps.

I would caution you against using the "what if the question/answer actually said..." approach very often, if at all. I guess it can be a useful analysis in some cases, but most people who use it do so WAYYYY too often. I believe it usually just allows the student to continue approaching the question how they wanted to approach it in the first place. But that approach led to an incorrect answer. Instead of changing a question or answer choice to make it fit how you were thinking, it's FAR more valuable to change the way you're thinking. Playing editor doesn't accomplish that and allows you to stay stuck in your ways.
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Super Express Shipping Company has implemented a new distribution Updated on: 29 May 2022, 19:50
Originally posted by Dinesh654 on 28 May 2022, 18:34.
Last edited by Dinesh654 on 29 May 2022, 19:50, edited 1 time in total.
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Hello experts,
As far as I know,
Basically the goal for which the plan has been implemented is to save the sales of company's premium two-day service so that premium sales won't decrease.

Even if - deliberate delay of packages WILL affect the company's image in a way that significantly reduces its ability to attract and retain customers

It's premium service might remain unaffected and most of the significant reduction could result from its normal service. Hence, premium service is still safe and argument can still work.
Suppose there were 60 customers of premium service and 40 costumers of normal service, after the plan, there are 60 customer of premium service and 1 customer of normal service.
Premium sales will not be lowered.
On negating, argument hasn???t fallen apart!

How this choice is an assumption? What am I missing?
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Super Express Shipping Company has implemented a new distribution 28 May 2022, 18:57
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dcoolguy
Hello experts,
As far as I know,
Basically the goal for which the plan has been implemented is to save the sales of company???s premium two-day service or so that premium sales won???t decrease.

Even if - deliberate delay of packages WILL affect the company's image in a way that significantly reduces its ability to attract and retain customers

It???s premium service might remain unaffected and most of the significant reduction could result from its normal service. Hence, premium service is still safe and argument can still work.
Suppose there were 60 customers of premium service and 40 costumers of normal service, after the plan, there are 60 customer of premium service and 1 customer of normal service.
Premium sales will not be lowered.
On negating, argument hasn???t fallen apart!

How this choice is an assumption? What am I missing?
Show more

Quoting the argument: "The company plans to encourage sales of its next-day service by intentionally delaying delivery of its two-day packages..."

Their plan is to ENCOURAGE people to buy the next-day rather than the two-day by making the two-day less attractive. If all they do is lose two-day customers completely, their plan to encourage next-day hasn't exactly been successful!
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Super Express Shipping Company has implemented a new distribution 28 May 2022, 20:44
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dcoolguy
Hello experts,
As far as I know,
Basically the goal for which the plan has been implemented is to save the sales of company???s premium two-day service or so that premium sales won???t decrease.

Even if - deliberate delay of packages WILL affect the company's image in a way that significantly reduces its ability to attract and retain customers

It???s premium service might remain unaffected and most of the significant reduction could result from its normal service. Hence, premium service is still safe and argument can still work.
Suppose there were 60 customers of premium service and 40 costumers of normal service, after the plan, there are 60 customer of premium service and 1 customer of normal service.
Premium sales will not be lowered.
On negating, argument hasn???t fallen apart!

How this choice is an assumption? What am I missing?
Show more
You're missing that, if deliberate delay of packages WILL affect the company's image in a way that significantly reduces its ability to attract and retain customers, it very likely will affect sales of not only the two-day service but also the premium overnight service. After all, neither the passage nor the answer choice provides any reason to believe that deliberate delay of packages will not affect sales of the premium overnight service.
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Super Express Shipping Company has implemented a new distribution 03 Jun 2022, 13:15
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I am not sure if I am able to comprehend the passage well:
Both the "premium next-day delivery service" and "two-day service" are delivering their shipments in: one day = the following day of the shipment = the next-day of the shipment.

Can someone please dumb it down for me as I seem to be missing something? (please excuse for this silly ask)
I have read the explanations in this thread, but couldn't figure out as they are mostly answer choice oriented. Thanks

Bunuel
Super Express Shipping Company has implemented a new distribution system that can get almost every package to its destination the day after it is sent. The company worries that this more efficient system will result in lower sales of its premium next-day delivery service, because its two-day service will usually arrive the following day anyway. The company plans to encourage sales of its next-day service by intentionally delaying delivery of its two-day packages so that they will not be delivered the following day, even if the package arrives at its destination city in time for next-day delivery.
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Super Express Shipping Company has implemented a new distribution 22 Jun 2022, 08:34
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ThatDudeKnows MartyTargetTestPrep

Is option B wrong because if the customers actually had a preference, for what we know, they have an equal probability of having a preference of either the next day or the 2 day delivery service. So according to the preference of the customers the company's plan can succeed or fail. We cannot tell which way the plan will go since we have no idea about the exact preference of the customers and that makes option B incorrect. Is my understanding correct?
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Super Express Shipping Company has implemented a new distribution 22 Jun 2022, 08:47
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ThatDudeKnows MartyTargetTestPrep

Is option B wrong because if the customers actually had a preference, for what we know, they have an equal probability of having a preference of either the next day or the 2 day delivery service. So according to the preference of the customers the company's plan can succeed or fail. We cannot tell which way the plan will go since we have no idea about the exact preference of the customers and that makes option B incorrect. Is my understanding correct?
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If we were to take B to be true, that customers don't have a preference between receiving in one day or in two days, then making the two-day actually arrive on the second day rather than the first wouldn't cause people to choose next-day instead. So this answer doesn't help us get to the conclusion, which makes it incorrect on a strengthen or assumption question.
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Super Express Shipping Company has implemented a new distribution 09 Jul 2022, 10:18
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Hi Experts,

Why is Option E incorrect.

Thanks
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Super Express Shipping Company has implemented a new distribution Updated on: 09 Jul 2022, 14:06
Originally posted by MartyTargetTestPrep on 09 Jul 2022, 11:07.
Last edited by MartyTargetTestPrep on 09 Jul 2022, 14:06, edited 1 time in total.
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KittyDoodles
Hi Experts,

Why is Option E incorrect.

Thanks
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Here's (E).

(E) competing companies' delivery services rarely deliver packages to their destination earlier than their promised time

The passage says the goal of the plan is "to encourage sales of its next-day service."

Regardless of whether other companies sometimes deliver packages early, Super Express could encourage the use of its own next-day service by not delivering two-day packages on the next day. After all, regardless of whether other companies sometimes deliver packages early, Super Express customers are more likely to use its next-day service if its two-day service doesn't deliver on the next day.
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Super Express Shipping Company has implemented a new distribution 09 Jul 2022, 11:38
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Hi Experts,

Why is Option E incorrect.

Thanks
The passage says the goal of the plan is "to encourage sales of its next-day service."

Regardless of whether other companies sometimes deliver packages early, Super Express could encourage the use of its own next-day service by not delivering two-day packages on the next day. After all, regardless of whether other companies sometimes deliver packages early, Super Express customers are more likely to use its next-day service if its two-day service doesn't deliver on the next day.
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Hi

Thanks for the quick reply.

But suppose instead of taking Super Express' next day delivery service, the customers shift to a competitor's two day delivery service and if we negate option E, the competitor will deliver packages before two days limit. Won't this break the conclusion down & thus make option E a necessary assumption?

Thanks
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Super Express Shipping Company has implemented a new distribution 09 Jul 2022, 14:12
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Hi Experts,

Why is Option E incorrect.

Thanks
The passage says the goal of the plan is "to encourage sales of its next-day service."

Regardless of whether other companies sometimes deliver packages early, Super Express could encourage the use of its own next-day service by not delivering two-day packages on the next day. After all, regardless of whether other companies sometimes deliver packages early, Super Express customers are more likely to use its next-day service if its two-day service doesn't deliver on the next day.

Hi

Thanks for the quick reply.

But suppose instead of taking Super Express' next day delivery service, the customers shift to a competitor's two day delivery service and if we negate option E, the competitor will deliver packages before two days limit. Won't this break the conclusion down & thus make option E a necessary assumption?

Thanks
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Notice that those competitors will deliver packages early sometimes regardless of whether Super Express does. So, those competitors for the next-day service already exist.

So, what does Super Express accomplish by not delivering packages early? It removes itself as a competitor for it's own next-day service.

Now, yes, it may be the case that Super Express will lose customers for its two-day service by not delivering packages early. However, the goal of the plan is to encourage use of its next-day service, and by removing itself as a competitor for its own next-day service, Super Express may succeed in achieving that goal even if other companies sometimes deliver packages early.
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Super Express Shipping Company has implemented a new distribution 10 Jul 2022, 14:09
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Bunuel
Super Express Shipping Company has implemented a new distribution system that can get almost every package to its destination the day after it is sent. The company worries that this more efficient system will result in lower sales of its premium next-day delivery service, because its two-day service will usually arrive the following day anyway. The company plans to encourage sales of its next-day service by intentionally delaying delivery of its two-day packages so that they will not be delivered the following day, even if the package arrives at its destination city in time for next-day delivery.

The company's plan assumes that
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Here we need to find a choice that is necessary for the company to succeed in avoiding lower sales because of the reduction in usage of its next-day delivery service.

Quote:
(A) deliberate delay of packages will not affect the company's image in a way that significantly reduces its ability to attract and retain customers
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This definitely impacts the company’s plan if the delay will affect the companies revenue and low sales. An absolutely necessary condition if the company wants to succeed its plan, otherwise the company will lose REVENUE and SALES. Hang on to this one (A)

Quote:
(B) most people do not have a preference for either two-day or next-day delivery
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This is not a necessary assumption, in fact, if most people do not have a preference, the company might very well lose next-day deliv customers and therefore, sales, to two-day delivery by delivering packages the same day as next-day delivery.

Quote:
(C) if the plan is not implemented, the company would lose more money in lost sales of overnight deliveries than it would save with its new efficient distribution system
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This is a tricky choice but even if the company lost more money in lost sales without the plan, this is NOT a NECESSARY condition for the company to try to keep up its premium-day delivery. The company could lose more or less compared to the savings with the new efficient distribution system and STILL lose SOME money on premium-day delivery. Remember the goal here is to provide an assumption that is necessary for the company to avoid losing money on the premium service.

Quote:
(D) the overnight service is too expensive to be attractive to most customers currently
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The overnight service doesn’t need to seem TOO expensive to customers for the company to go forward with its plan. Even if the overnight service seems similar in price or not significantly costlier, customers might choose to use two-day delivery because of the new change in reduced delivery time.


Quote:
(E) competing companies' delivery services rarely deliver packages to their destination earlier than their promised time
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What competing companies do here is irrelevant.

(A) is the correct answer.
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