Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 1912:30 PM EST
-01:30 PM EST
Learn how Keshav, a Chartered Accountant, scored an impressive 705 on GMAT in just 30 days with GMATWhiz's expert guidance. In this video, he shares preparation tips and strategies that worked for him, including the mock, time management, and more
Nov 1811:00 AM PST
-12:00 PM PST
Join us in a live GMAT practice session and solve 30 challenging GMAT questions with other test takers in timed conditions, covering GMAT Quant, Data Sufficiency, Data Insights, Reading Comprehension, and Critical Reasoning questions.
Nov 2001:30 PM EST
-02:30 PM IST
Learn how Kamakshi achieved a GMAT 675 with an impressive 96th %ile in Data Insights. Discover the unique methods and exam strategies that helped her excel in DI along with other sections for a balanced and high score.
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2407:00 PM PST
-08:00 PM PST
Full-length FE mock with insightful analytics, weakness diagnosis, and video explanations!
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
23 Sep 2025, 01:36
Kudos
Bookmarks
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
59% (01:39) correct
41%
(01:46)
wrong
based on 295
sessions
History
Date
Time
Result
Not Attempted Yet
The perceived value of goods and services, rather than just their price, is becoming an increasingly prominent factor in the purchase decisions of modern consumers, a new report has indicated. Thus, it can be concluded that consumers will be increasingly willing to spend extra on goods and services that are high-quality and durable.
For the above statements to be true, which of the following must be true?
(A) The price of a product plays no role in the making of purchase decisions by modern consumers.
(B) There is a positive relation between the quality of a product and its durability
(C) The modern consumer is not likely to allow the quality of a product to determine his purchase decision.
(D) The ideal way for manufacturers to charge more for their products is to increase the perceived value of their products in the minds of the modern consumer.
(E) The durability of a product is in some way related to its perceived value in the minds of modern consumers.
For the above statements to be true, which of the following must be true?
(A) The price of a product plays no role in the making of purchase decisions by modern consumers.
(B) There is a positive relation between the quality of a product and its durability
(C) The modern consumer is not likely to allow the quality of a product to determine his purchase decision.
(D) The ideal way for manufacturers to charge more for their products is to increase the perceived value of their products in the minds of the modern consumer.
(E) The durability of a product is in some way related to its perceived value in the minds of modern consumers.
24 Sep 2025, 00:22
Kudos
Bookmarks
Bunuel
The question statement mentions APART from price there is another factor which also influences the purchase decision of modern consumers- which is the PERCEIVED VALUE OF GOODS.
Thus, the author concludes that consumers are Willing to spend that extra amount on goods and services - provided that the QUALITY IS HIGH, & DURABLE.
We can concluded that the terms High Quality and Durable are related to Perceived Value of Goods and NOT related to Price.
Lets look into the options :
(A) The price of a product plays no role in the making of purchase decisions by modern consumers.
This is contradictory to the question stem. Price is also a factor in determining the purchase decision of modern consumers. Hence, Eliminating it.
(B) There is a positive relation between the quality of a product and its durability.
These two terminologies are related to perceived value of goods. But, no way they are related as per question stem. Hence, Eliminating it.
(C) The modern consumer is not likely to allow the quality of a product to determine his purchase decision.
This is contrary to the statement made in the question. The consumers are willing to spend more on the perceived value of goods ( high quality, durability). Hence, Eliminating it.
(D) The ideal way for manufacturers to charge more for their products is to increase the perceived value of their products in the minds of the modern consumer.
Two things make this option wrong - Firstly, there cannot be an IDEAL WAY for charging more. Secondly, the question speaks about perceived value of goods and how it affects purchase decision.
Even though, price is one among the factors which affects this decision. The question does not speak about price increase, but the customer willingness to spend more for a better product. Hence, Eliminating it.
(E) The durability of a product is in some way related to its perceived value in the minds of modern consumers.
We can definitely conclude that the durability of the product is related to perceived value of goods.
Option E.
05 Oct 2025, 18:30
Kudos
Bookmarks
Bunuel
Official Explanation
Answer: E
Don’t mistake this question for an Inference question; it is in fact an Assumption question. Notice the wording of the question stem; it states which of the options has to be true for the argument to be true, that is, the assumption.
The evidence states that consumers would be willing to pay more for products that they perceive higher than the others. However, the conclusion states that these consumers would be willing to spend more on products that are high quality and durable. Thus, the assumption has to be that high quality and durability are factors that increase the perception of a product in the consumers’ minds. E states this and is the correct answer.
(A) Extreme option, the price may play a role but a smaller role than the perception of the product in the consumers’ mind.
(B) No such connection can be arrived at on the basis of the argument.
(C) Opposite. In fact, according to the last sentence of the argument, the quality of the product will be a deciding factor for the modern consumer.
(D) This could be an inference from the argument but is definitely not an assumption. If you are confused, try negating this option. It will not make any difference to the argument.
(E) The correct answer. If you negate this, the argument falls apart.
