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# There are 350 brands of cellphones in the market today. However, our

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Manager
Joined: 20 Jan 2016
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There are 350 brands of cellphones in the market today. However, our  [#permalink]

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06 Oct 2017, 10:28
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25% (medium)

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72% (01:18) correct 28% (01:31) wrong based on 151 sessions

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There are 350 brands of cellphones in the market today. However, our store only stocks the top 10 brands. In order to increase our sales, we plan to increase the size of our inventory to the top 50 brands.

Which of the following, if true, points out the major flaw in the plan above?

A) The capabilities of the top five cellphones are almost the same, with no brand having consistent superiority in all respects

B) The top 8 brands account for almost all the cells phones sold

C) As users get more sophisticated, they want to try out the lesser know brands which might offer some other value to them

D) less popular brands provide little profit to the store because they have to be discounted to be sold

E) The leading brands are now losing sales to less popular brands that offer similar features for a lower cost

Found this question in gmat flashcards page 71
Manager
Joined: 07 Jun 2017
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GMAT 1: 660 Q46 V38
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Re: There are 350 brands of cellphones in the market today. However, our  [#permalink]

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06 Oct 2017, 10:53
The answer is B. If top 8 brands are account for almost sales, then introducing 50 more brand will not increase any sale

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Manager
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Re: There are 350 brands of cellphones in the market today. However, our  [#permalink]

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06 Oct 2017, 11:48
Why is option C wrong ? If users prefer lesser known brand, then no one will purchase the top 50 brand and therefore sales will not increase?
Intern
Joined: 14 Mar 2017
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Re: There are 350 brands of cellphones in the market today. However, our  [#permalink]

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06 Oct 2017, 12:00
IMO D. Less popular brands will not provide profit. So increasing stock with brands from 10 - 50 will not make a difference

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Joined: 14 Nov 2014
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Re: There are 350 brands of cellphones in the market today. However, our  [#permalink]

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06 Oct 2017, 12:39
narendra111988 wrote:
IMO D. Less popular brands will not provide profit. So increasing stock with brands from 10 - 50 will not make a difference

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this is not about profit ..Argument is focusing on "sales" only
Intern
Joined: 22 Sep 2016
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Re: There are 350 brands of cellphones in the market today. However, our  [#permalink]

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06 Oct 2017, 14:04
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B. Answer implies that selling brands outside the top 8 will have very minor impact on sales

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Manager
Joined: 15 Feb 2017
Posts: 76
Re: There are 350 brands of cellphones in the market today. However, our  [#permalink]

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07 Oct 2017, 04:54
Option D can be ruled out because what we want is increase of sales and not increase of profits.
Option A can be ruled out because it is not talking about the remaining 40 brands.
Option C does not point out a flaw in the argument. It is an advantage of stocking the store with the lesser known brands.
Option E also does not indicate a flaw in the argument.It tells us about an advantage of stocking the store with the lesser known brands.
Option B tells that the top eight brands of cellphones account for a majority of the cellphones sold.So increasing the size of the inventory will not affect the sales. Hence B is the right answer
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Re: There are 350 brands of cellphones in the market today. However, our  [#permalink]

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10 Mar 2019, 11:37
Can anyone explain why option E is incorrect?

The leading brands are now losing sales to less popular brands that offer similar features for a lower cost - If leading brands are losing sales to less popular brands then the store is not likely to see any increase in total sales as the buyers who earlier bought a phone of leading brand would buy one of a less popular but cheaper brand.
How can this increase sales?

Option B uses the word "almost". There is still scope for increasing sales by adding less popular brands to the inventory, even if it the percentage increase would not be very significant.
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Manager
Joined: 28 May 2018
Posts: 145
Location: India
Schools: ISB '21 (II)
GMAT 1: 640 Q45 V35
GMAT 2: 670 Q45 V37
GMAT 3: 730 Q50 V40
Re: There are 350 brands of cellphones in the market today. However, our  [#permalink]

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10 Mar 2019, 11:40
Can anyone explain why option E is incorrect?

The leading brands are now losing sales to less popular brands that offer similar features for a lower cost - If leading brands are losing sales to less popular brands then the store is not likely to see any increase in total sales as the buyers who earlier bought a phone of leading brand would buy one of a less popular but cheaper brand.
How can this increase sales?

Option B uses the word "almost". There is still scope for increasing sales by adding less popular brands to the inventory, even if it the percentage increase would not be very significant
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Re: There are 350 brands of cellphones in the market today. However, our   [#permalink] 10 Mar 2019, 11:40
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