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# In many surveys, American consumers have expressed a willingness to sp

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Senior Manager
Joined: 25 Mar 2009
Posts: 288
In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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20 Jul 2009, 20:38
1
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Difficulty:

(N/A)

Question Stats:

73% (00:51) correct 27% (00:18) wrong based on 42 sessions

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Test B #10

In many surveys, American consumers have expressed a willingness to spend up to 10 percent more for products that are ecologically sound. Encouraged by such surveys, Bleach-O Corporation promoted a new laundry detergent, Bleach-O Green, as safer for the environment. Bleach-O Green cost 5 percent more than typical detergents. After one year, Bleach-O Green had failed to capture a significant share of the detergent market and was withdrawn from sale.

Which of the following questions is LEAST likely to be relevant in determining the reasons for the failure of Bleach-O Green?

(A) How effective as a detergent was Bleach-O Green?
(B) How many other detergents on the market were promoted as safe for the environment?
(C) How much more did Bleach-O Green cost to manufacture than ordinary detergents?
(D) To what extent did consumers accept the validity of Bleach-O Green advertised and promoted to consumers?
(E) How effectively was Bleach-O Green advertised and promoted to consumers?

Manager
Joined: 19 Nov 2007
Posts: 140
Re: In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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20 Jul 2009, 21:09
IMO..C since it mentions that "Bleach-O Green cost 5 percent more than typical detergents." so manufacturers already know that Bleach-O Green costs more than normal detergents..hence it is least likely relevant.
Senior Manager
Joined: 25 Mar 2009
Posts: 288
Re: In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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21 Jul 2009, 09:32
How is the cost of manufacture not relevant to capturing market share? If the cost of making the product is too high, maybe they didn't put out enough product on the shelves and this caused the failure of capturing market share. To me, this is very relevant.

I answered E because advertising shouldn't affect consumers' willingness to buy. There is nothing in the argument which says if they are advertised to, they will buy the product. They will buy the product b/c it is ecologically sound, and that's it. Since the product is ecologically sound, why do they need to advertise? We can only use what's given, and there is nothing to suggest that advertising makes people buy a product.
Manager
Joined: 17 Jul 2009
Posts: 235
Concentration: Nonprofit, Strategy
GPA: 3.42
WE: Engineering (Computer Hardware)
Re: In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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21 Jul 2009, 15:59
C ... how much it cost to manufacturing doesnt have anything to do with failure to CAPTURE MARKET SHARE...since the price of the product is already set..manufacturing cost only effects the company profit, not the market share i think.
Manager
Joined: 27 Jun 2008
Posts: 135
Re: In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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21 Jul 2009, 17:45
@ topher: It came to my mind too, plausible but then too far-streched.
Intern
Joined: 24 Nov 2008
Posts: 7
Re: In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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21 Jul 2009, 19:02
1
Look at the ans choice C this way:
It is also possible that the company goes ahead with the launch of the product which costs \$10 to manufacture but market it with an introductory price of \$9 just to capture the market share.
In such a case the cost of manufacturing is not relevant.
Intern
Joined: 23 Aug 2011
Posts: 31
Re: In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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11 Sep 2011, 03:33
irajeevsingh wrote:
+1 for C

Hi ,Wat actually question want as to find?
LEAST likely to be relevant ???? means
Is it asking the for the best Question that should be asked in determining the reasons for the failure of Bleach-O Green OR the question that should not be asked (like which the waste question )

I landed up in A:(
Thanks to explain
Intern
Joined: 03 Mar 2012
Posts: 1
Re: In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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03 Mar 2012, 22:34
Its mentioned - "American consumers have expressed a willingness to spend up to 10 percent more for products that are ecologically sound". So Bleach-O Green can afford to be expensive. Also its cited - "Bleach-O Green cost 5 percent more than typical detergents". So IMO -> cost is the least affected parameter.

Thanks
Subin
Manager
Joined: 12 Nov 2011
Posts: 71
Re: In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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04 Mar 2012, 11:29
Why not B?
(B) How many other detergents on the market were promoted as safe for the environment?
for ex the answer 5 and total is 500
or answer 5 and total is 6
so why the answer to this Q is important?
Intern
Joined: 23 Jan 2012
Posts: 6
Location: United States
Re: In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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15 Apr 2012, 01:34
B - How many other detergents on the market were promoted as safe for the environment? This choice can be applied as below, if the other detergents in the market were promoted as safe and if they were quite good enough in standards, then there will be problem for detergent specified in the question.

C - This option is best because everyone knows that the detergent costs 5% higher than normal detergent. If this option is considered, people would have not bought the detergent from day 1. So, company need not to wait for 1 year to stop sale.
Manager
Status: May The Force Be With Me (D-DAY 15 May 2012)
Joined: 06 Jan 2012
Posts: 214
Location: India
Concentration: General Management, Entrepreneurship
Re: In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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15 Apr 2012, 05:10
+1 C

Definitely irrelevant to answer why the product failed
_________________

Giving +1 kudos is a better way of saying 'Thank You'.

Intern
Joined: 19 Dec 2018
Posts: 48
Re: In many surveys, American consumers have expressed a willingness to sp  [#permalink]

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19 Dec 2018, 03:51
The questions are to be asked in determining the reasons for Bleach-O-Green to fail. The cost of manufacturing Bleach-O-Green when compared to other detergents is not going to help in determining the reasons for Bleach-O-Green’s failure.Hence (c).
Re: In many surveys, American consumers have expressed a willingness to sp &nbs [#permalink] 19 Dec 2018, 03:51
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