MamtaKrishnia wrote:
Project CR Butler:Day 33:Critical Reasoning (CR1)
For all CR butler Questions Click HereSurveys show that every year only 10 percent of cigarette smokers switch brands. Yet the manufacturers have been spending an amount equal to 10 percent of their gross receipts on cigarette promotion in magazines. It follows from these figures that inducing cigarette smokers to switch brands did not pay, and that cigarette companies would have been no worse off economically if they had dropped their advertising.
Of the following, the best criticism of the conclusion that inducing cigarette smokers to switch brands did not pay is that the conclusion is based on
(A) computing advertising costs as a percentage of gross receipts, not of overall costs
(B) past patterns of smoking and may not carry over to the future
(C) the assumption that each smoker is loyal to a single brand of cigarettes at any one time
(D) the assumption that each manufacturer produces only one brand of cigarettes
(E) figures for the cigarette industry as a whole and may not hold for a particular company
Check its detailed video solution here:
https://youtu.be/3s0tWn3tiT8?feature=shared- every year only 10 percent of smokers switch brands.
- manufacturers spend 10 percent of their gross receipts on cigarette promotion in magazines.
Conclusion: Inducing cigarette smokers to switch brands did not pay, and that cigarette companies would have been no worse off economically if they had dropped their advertising.
The conclusion seems reasonable. The companies spend 10% of gross receipts on marketing but only 10% people in the entire industry switch brands. It seems that so much marketing budget may not have been of much use.
the best criticism of the conclusion is that the conclusion is based on
(A) computing advertising costs as a percentage of gross receipts, not of overall costs
This is not a criticism. The figures could be represented in any terms. They still stay the same.
(B) past patterns of smoking and may not carry over to the future
There is no discussion of future. The conclusion talks about past "... did not pay ... would have been no worse off ..."
(C) the assumption that each smoker is loyal to a single brand of cigarettes at any one time
No such assumption is made. 10% people switch brands even if they are using multiple brands.
(D) the assumption that each manufacturer produces only one brand of cigarettes
No such assumption. A manufacturer could produce multiple brands and advertise for all. Still only 10% people switch brands.
(E) figures for the cigarette industry as a whole and may not hold for a particular company
This says that though the "10% people" figure seems small industry wise, it may be a good number for a company.
Say there are 5 brands (A, B, C..) with each having 20 loyalists for a total of 100 smokers. Say 10 of these 100 switch brands (from B, C, D and E) and come over to A. Now A has 30 loyalists. That is a 50% increase in its customer base. So the 10% marketing budget may have been worth it.
Hence this is the criticism of the conclusion.
Answer (E)
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