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Talk inc, a phone maker, aims to increase its market share by deeply

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Concentration: Finance, Technology
GMAT 1: 660 Q50 V30
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Talk inc, a phone maker, aims to increase its market share by deeply  [#permalink]

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New post 09 Apr 2018, 10:06
1
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A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

82% (01:09) correct 18% (01:00) wrong based on 56 sessions

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Talk inc, a phone maker, aims to increase its market share by deeply discounting its phones' prices for the next several months. The discounts will cut into profits, but because they will be heavily advertised the manufacturer hopes that they will attract buyers away from rival manufacturers' phones. In the longer term, the phone maker envisions that customers initially attracted by the discounts may become loyal customers.

In assessing the plan's chances of achieving its aim, it would be most useful to know which of the following?

A Whether the phone maker's competitors are likely to respond by offering deep discounts on their own products
B Whether the advertisements will be created by the manufacturer's current advertising agency
C Whether some of the phone maker's models will be more deeply discounted than others
D Whether the phone maker will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect
E Whether an alternative strategy might enable the phone maker to enhance its profitability while holding a constant or diminishing share of the market

Source:Crackverbal

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Re: Talk inc, a phone maker, aims to increase its market share by deeply  [#permalink]

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New post 09 Apr 2018, 10:41
A it is.

Only A establish the link between Talk inc and its competitor as stated in the conclusion.( will be heavily advertised the manufacturer hopes that they will attract buyers away from rival manufacturers' phones. In the longer term, the phone maker envisions that customers initially attracted by the discounts may become loyal customers.)
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Re: Talk inc, a phone maker, aims to increase its market share by deeply &nbs [#permalink] 09 Apr 2018, 10:41
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