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

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Director
Joined: 12 Oct 2008
Posts: 538
The value of a product is determined by the ratio of its [#permalink]

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24 Jan 2009, 11:24
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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) Consumers' perceptions of the quality of a product are based on the actual quality of the product.
Director
Joined: 25 Oct 2006
Posts: 633
Re: CR Quality [#permalink]

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24 Jan 2009, 11:36
IMO E.

competitiveness depends on either higher quality or lower price. E stated that consumer also goes for quality of product. So I chose E.
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Director
Joined: 01 Aug 2008
Posts: 725
Re: CR Quality [#permalink]

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24 Jan 2009, 11:52
IMO E.
Senior Manager
Joined: 02 Nov 2008
Posts: 276
Re: CR Quality [#permalink]

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24 Jan 2009, 17:00
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.
This has no effect on the conclusion
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
a product without changing its competitive position.
This would weaken the conclusion
(C) Competing products often try to appeal to different segments of the population of consumers.
a product without changing its competitive position.
This has no effect on the conclusion
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
a product without changing its competitive position.
This has no effect on the conclusion. We are concerned with price and quality (not advertising and brand loyalty
(E) Consumers' perceptions of the quality of a product are based on the actual quality of the product.

Bingo
Senior Manager
Joined: 19 Nov 2007
Posts: 457
Re: CR Quality [#permalink]

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24 Jan 2009, 17:46
Easy E.
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Manager
Joined: 04 Jan 2009
Posts: 237
Re: CR Quality [#permalink]

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25 Jan 2009, 17:18
vscid wrote:
Easy E.

E for me.

Is it OA?
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tusharvk

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Schools: La Martiniere for Boys
Re: CR Quality [#permalink]

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25 Jan 2009, 21:33
IMO A because it maintains the ratio talked about in the paasage and is hence a strengthener.

Whats the OA
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Thanks
rampuria

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Joined: 05 Jul 2008
Posts: 1401
Re: CR Quality [#permalink]

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29 Jan 2009, 10:27
This was a tough one for me.

V=Q/P

We know what the price is It is low, if it is low, high if high.

But Q is a subjective element. E is essentially saying that perception is reality.

Hence E
Senior Manager
Joined: 21 Apr 2008
Posts: 484
Schools: Kellogg, MIT, Michigan, Berkeley, Marshall, Mellon
Re: CR Quality [#permalink]

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29 Jan 2009, 13:16
Hi mates,

IMO A although for me it's not as easy as it is for the rest of the people

(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.

A Hold V=Q/P=2Q/2P
B People's preferences are not the point
C we are not talking about segments of the population
D in the problem neither ads nor brand loyalty are stated
E this point regards how to measure the quality but the problem regards the value of the product

OA and Source?

Thanks!
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Senior Manager
Joined: 26 May 2008
Posts: 426
Schools: Kellogg Class of 2012
Re: CR Quality [#permalink]

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30 Jan 2009, 02:50
I'll go with A....

it is stated in the premise........

Cheers,
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Manager
Joined: 10 Jan 2009
Posts: 102
Re: CR Quality [#permalink]

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01 Feb 2009, 21:29
In for E.

(A) It is possible to increase both the quality and the price of a product without changing its competitive position.
May be. But how does it support the conclusion ?
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
Here we divert from actual quality.
(C) Competing products often try to appeal to different segments of the population of consumers.
Here we divert from actual quality.
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
Here we divert from actual quality.
(E) Consumers' perceptions of the quality of a product are based on the actual quality of the product.

For a STRENGTHENING Q , we have to find a premise which supports the conclusion, E is the unstated assumption. If E is added in the argument the conclusion is complete.

E for me.
VP
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Re: CR Quality [#permalink]

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02 Feb 2009, 03:28
I will go with E
Senior Manager
Joined: 21 Apr 2008
Posts: 484
Schools: Kellogg, MIT, Michigan, Berkeley, Marshall, Mellon
Re: CR Quality [#permalink]

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02 Feb 2009, 12:55
I think it's time for OA...
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Joined: 18 Jul 2008
Posts: 959
Re: CR Quality [#permalink]

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02 Feb 2009, 15:11
This is the same reasoning I went with.

icandy wrote:
This was a tough one for me.

V=Q/P

We know what the price is It is low, if it is low, high if high.

But Q is a subjective element. E is essentially saying that perception is reality.

Hence E
Senior Manager
Joined: 23 May 2008
Posts: 414
Re: CR Quality [#permalink]

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03 Feb 2009, 04:39
Its E
Manager
Joined: 17 Dec 2008
Posts: 171
Re: CR Quality [#permalink]

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03 Feb 2009, 07:05
E. (same expl as above)
VP
Joined: 18 May 2008
Posts: 1258
Re: CR Quality [#permalink]

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03 Feb 2009, 09:59
reply2spg, pls post the OA now
Manager
Joined: 02 Aug 2007
Posts: 222
Schools: Life
Re: CR Quality [#permalink]

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03 Feb 2009, 19:26
chicagocubsrule wrote:
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.
This has no effect on the conclusion
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
a product without changing its competitive position.
This would weaken the conclusion
(C) Competing products often try to appeal to different segments of the population of consumers.
a product without changing its competitive position.
This has no effect on the conclusion
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
a product without changing its competitive position.
This has no effect on the conclusion. We are concerned with price and quality (not advertising and brand loyalty
(E) Consumers' perceptions of the quality of a product are based on the actual quality of the product.

Bingo

E for me. Same reasons.

OA is E according to:http://www.urch.com/forums/gmat-critical-reasoning/81987-q-value-product-determined-ratio-its-quality-its-price.html
Director
Joined: 12 Oct 2008
Posts: 538
Re: CR Quality [#permalink]

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06 Feb 2009, 11:56
Sorry all but the OA is E
Re: CR Quality   [#permalink] 06 Feb 2009, 11:56
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