Super Express Shipping Company has implemented a new distribution

AndrewN, thank you for taking time to write a comprehensive reply. I understand, why in some questions, it is better to walk away without having four incorrect answer choices.

I will apply the strategy that you have mentioned. I understand that the strategy relies on a candidate's skill of applying solid logic to see why an answer choice works. If you can apply the logic that GMAT requires, the strategy will produce great results.

Thank you, hope you have a great time!

Company has implemented a new efficient system.
Two day delivery will take one day only.
So one day delivery premium will suffer.

Plan: Delay the delivery of two day shipping so that premium one day delivery sales gets encouraged.

Which of the following is an assumption?

The company's plan assumes that

(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


Is it an assumption that deliberate delaying will not adversely affect business? It is.

Negate (A): deliberate delay of packages will affect the company's image in a way that significantly reduces its ability to attract and retain customers
sudeshpatodiya
It doesn't matter whether you think this is possible or not. Focus on what happens given that this happens.
If this were true, will the plan work? No. The plan will certainly fail. How will the customers come to know about the deliberate delay - we don't have to worry. Perhaps the employees will spread the word. We don't know.
All we have to worry about is if it were to happen, what will happen to our plan.

(B) most people do not have a preference for either two-day or next-day delivery

We are not assuming this. In fact, we are assuming that next day delivery is valuable. That people pay for next day deliveries. We want to maintain the revenue we get from next day deliveries.

(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

Not as assumption. In fact, the new system must have been implemented because overall it is better for the company - saves costs or increases revenues. It has a negative impact on sale of premium one day service and that is what the plan is trying to rectify. If the plan is not implemented, lost money may not be (in fact, will likely not be) more than saved money.

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

Incorrect. It seems that the overnight service is attractive to customers.

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

We know that currently customer pay for one day delivery. We are trying to retain that business. We are not assuming anything about competitors.

Answer (A)


yatindra20

KarishmaB
I am so sorry for all of these CR questions, as you have been so thoughtful and kind with your responses.

To clarify, is choice E just simply out of scope for another reason besides competitors not being mentioned.... that reason being let's say 5% of competitors DID deliver packages to customers earlier it can still not matter because what if Super Express Shipping Company has a loyalty program, or simply better phone service, etc. customers may still opt to use Super Express Shipping Company for other reasons?

Let me explain why C is wrong.

First, I believe that the following modified version would be a correct assumption:

(C-variant) If the plan is not implemented, the company would lose more money in lost sales of overnight deliveries than it would gain in increased sales of its two-day service

If I negate the above option, I get

If the plan is not implemented, the company would lose money in lost sales of overnight deliveries less than or the same as it would gain in increased sales of its two-day service

In this case, the company is not at a disadvantage by not implementing the plan. Thus, there's no reason to implement the plan.

**********

Now, coming back to the original option 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

This option is comparing the money lost in reduced sales of overnight deliveries AND the money saved with its new efficient distribution system.

However, this comparison is NOT relevant since, in our plan, we're not getting rid of the new efficient distribution system. We're using the efficient system; just that we're delaying the deliveries. Thus, we'll save money from the efficient distribution system even in our plan (the first statement says that we've already implemented this new system and there's no discussion of dropping this system).

If our plan included discarding this efficient distribution system, then this option could be the answer. However, right now, this option is not correct.

Does it make sense?

Should we implement the plan for increased overall revenues (revenues for 1 day service + revenues for two-day service)
vs
Should we NOT implement the plan for Increased overall revenues (revenues for 1 day service + revenues for two-day service)

...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.

Revenues (from next-day service ONLY) When the plan is implemented
vs
Revenues (from next-day service ONLY) When the plan is NOT implemented

Hey m1033512,

(C) is not an assumption of the plan, it is a reason for making the plan. In particular, note that the question is 'the plan assumes that...' while (C) states 'if there is no plan, then...'. But we don't care about what happens if there is no plan, we care about what is required for the plan to work.

Why is E not an assumption. If the competitors start delivering the products before the proposed time, then customers will move to them and the plan won't work.

i chose wrong answer c...

how do we negate c? C. if the plan is implemented, the company would lose more money in lost sales of overnight deliveries than it would save with its new efficient distribution system?

This would weaken the argument, right?

(E) is tricky to eliminate, but here's why we can eliminate it.

Let's say that competitors sometimes deliver packages earlier than their promised time. Then, Super Express may lose some next-day business to those competitors' two-day services. It's true.

At the same time, if Super Express does not deliver packages early, at least Super Express won't lose next-day business to its own two-day business.

So, by delaying two-day packages, Super Express will be doing at least something to encourage use of its next-day service.

How C is wrong ?


Could you help to understand that .

Posted from my mobile device

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

(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
(B) most people do not have a preference for either two-day or next-day delivery
(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
(D) the overnight service is too expensive to be attractive to most customers currently
(E) competing companies' delivery services rarely deliver packages to their destination earlier than their promised time