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The value of a product is determined by the ratio of its

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Director
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New post 08 Jun 2004, 01:35
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18. 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) Consumers’ perceptions of the quality of a product are based on the actual quality of the product.

Please explain your answer if possible.
OA will follow.

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New post 08 Jun 2004, 03:41
I guess E is the answer.

The author assumes that consumers are capable of differentiating between, shall we say, products' various qualities; such savvy will obviously make them choose better-quality products. Therefore, if consumers base their perception of quality on the actual quality of products, increasing the quality of a product will increase the likelihood that consumers will select that product over a competing one.

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New post 08 Jun 2004, 07:54
Some one among those who posted before me is going to score 750+

(E) should be it. ( it is the assumption )

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New post 08 Jun 2004, 10:09
With no scrolling down my final answer is E.

Also anandnk, please reflect your thoughts about folks answering after you. This is a logical reasoning section. You want us to infer something.

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New post 08 Jun 2004, 22:22
OA is E
Thanks for your explanations

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  [#permalink] 08 Jun 2004, 22:22
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