The value of a product is determined by the ratio of its : GMAT Critical Reasoning (CR)
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# The value of a product is determined by the ratio of its

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The value of a product is determined by the ratio of its [#permalink]

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18 Sep 2005, 16:49
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The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position. Therefore, either increasing the quality or lowering the price of a given product will increase the likelihood that consumer will select that product rather than a competing one.

Which of the following, if true, would most strengthen the conclusion drawn above?

(A) It is possible to increase both the quality and the price of a product without changing its competitive position.
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
(C) Competing products often try to appeal to different segments of the population of consumers.
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
(E) Consumersâ€™ perceptions of the quality of a product are based on the actual quality of the product.

How in good heavens to solve such a CR?????
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Cheers, Rahul.

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18 Sep 2005, 17:29
(E) Consumers’ perceptions of the quality of a product are based on the actual quality of the product.
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18 Sep 2005, 20:04
E.

It's the only answer that ties increasing quality with increased consumer perception of value.
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18 Sep 2005, 20:07
You guys make it sound so easy! I couldnt figure this one out!!
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23 Sep 2005, 15:37
I was gonna pick A. but is E the OA?
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hey ya......

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24 Sep 2005, 05:45
All other answers either weaken the argument or are out of scope. It`s E all the way!
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24 Sep 2005, 06:53
Well here goes my reasoning
Value of a product based on ratio of quality and price.
Consumer decision to select a product
a) Higher quality higher value or
b) Lower price higher value

Choice A I will try to explain it mathematically which is quite easier to understand.
Example: Product Aâ€™s value = 2/3 [Quality/Price]
In case if I increase quality by 1 and price by 1
Then product Aâ€™s value = Â¾ which is more than the original value
Exception to this will be increasing in such a way that the value will be same and that will be not representative of general case.
Choice B Out of scope it is taking the exception case that consumers prefer a product based on prices thus weakening the argument in case the quality remains the same. Although this scenario happens in real life situations however we have to stick with the argument not to choose this option based on our experiences.
Choice C Out of Scope
Choice D It is taking some other causes for affecting the competitive position of a product and not restricting the scope of the argument.
Choice E bingo this is the choice that makes sense.

Hope this helps.
24 Sep 2005, 06:53
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