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Surveys show that every year only 10 percent of cigarette [#permalink]
30 Jun 2007, 08:37
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Surveys 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
Caught b/w C and E...please give reasons for ur POE
The given argument relies on C.
what if each smoker smokes more than 1 brand of ciggarettes. and one of this brands is a company's. then every company should keep spending at least to hold its customers.Here promotion may be one of the incentives to make smoker chose this company's brand and not switch to other brand.
I am thinking between C and D . Though D looks right in first glance, yet the argument does not rely on this.
C is the best. The answer is lying in the question - What if smokers are smoking brands from different companies.
conclusion : inducing cigarette smokers to switch brands did not pay
The conclusion is based on the assumption -----
I have observed a pattern for CRs: If two answers are close both are incorrect. In this CR , C and D are close -as in making assumption about "brands" and "manufacturers.
According my POE, I would eliminate C and D.
Among A,B and E.
A- doesnot matter how you allocate the budget for advertising.Not be a reason for the best criticism.
B-cannot be an valid assumption. If the companies believed it was not possible to change consumer habits why would they advertise?