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Three major laundry detergent manufacturers have

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Three major laundry detergent manufacturers have [#permalink]

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New post 27 Jul 2009, 15:03
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A
B
C
D
E

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Three major laundry detergent manufacturers have concentrated their powdered detergents by reducing the proportion of inactive ingredients in the detergent formulas. The concentrated detergents will be sold in smaller packages. In explaining the change, the manufacturers cited the desire to reduce cardboard packaging and other production costs. Market analysts predict that the decision of three manufacturers, who control 80 percent of the laundry detergent market will eventually bring about the virtual disappearance of old-style bulky detergents

 Which one of the following, if true, most strongly supports the prediction made by the market analysts?

(A) Most smaller manufacturers of laundry detergents will consider it too expensive to retool factories for the production of the smaller detergent packages.
(B) Many consumers will be skeptical initially that the recommended small amount of concentrated detergent will clean laundry as effectively as the larger amount of the old-style detergent did
(C) Some analysts believe that consumers will have to pay a greater cost per load of laundry to use the new concentrated detergent than they did to use the old-style detergent
(D) Major supermarkets have announced that they will not charge the detergent manufacturers less to display their detergents even though the detergents will take up less shelf space
(E) Comsumers are increasingly being persuaded by environmental concerns to buy concentrated detergents when available in order to reduce cardboard waste

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New post 27 Jul 2009, 19:58
E. It is the only choice that supports a growth in sales of the new, smaller size.

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Re: Laundry Detergent [#permalink]

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New post 27 Jul 2009, 20:37
IMO E
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New post 28 Jul 2009, 13:27
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B for me.

E says that consumers are persuaded by environmentalists to buy concentrated detergents in order to "reduce cardboard waste". This means that consumers have to necessarily believe what the manufacturers are 'citing'. Note that the argument says "the manufacturers cited the desire to reduce cardboard packaging" which may or may not be true. Hence, it is not a strong selling point.

B says that "initially" consumers will be skeptical about the effectiveness...means that at a later point in time they will realize that the small package does the same job as the bulky one. This is much stronger than E.

OA?

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Re: Laundry Detergent [#permalink]

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New post 28 Jul 2009, 14:38
Economist wrote:
B for me.

E says that consumers are persuaded by environmentalists to buy concentrated detergents in order to "reduce cardboard waste". This means that consumers have to necessarily believe what the manufacturers are 'citing'. Note that the argument says "the manufacturers cited the desire to reduce cardboard packaging" which may or may not be true. Hence, it is not a strong selling point.

B says that "initially" consumers will be skeptical about the effectiveness...means that at a later point in time they will realize that the small package does the same job as the bulky one. This is much stronger than E.

OA?


agree!
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Re: Laundry Detergent [#permalink]

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New post 29 Jul 2009, 08:05
Was torn between B and E, appears B might be better. OA and source please?

The prediction:
"Market analysts predict that the decision of three manufacturers, who control 80 percent of the laundry detergent market will eventually bring about the virtual disappearance of old-style bulky detergents"

B) Many consumers will be skeptical initially that the recommended small amount of concentrated detergent will clean laundry as effectively as the larger amount of the old-style detergent did - eventually, consumers will start using the concentrated detergent despite of initial resistance leading to ultimate disappearance of bulkly detergent.

(E) Comsumers are increasingly being persuaded by environmental concerns to buy concentrated detergents when available in order to reduce cardboard waste - consumers are simply being persuaded, doesnt say that they are already buying concentrated detergent citing reduced cardboard waste. From what we know, this persuading effor may work or may not.

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Re: Laundry Detergent [#permalink]

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New post 29 Jul 2009, 10:52
My answer A
If the small manufacturers continue producing detergent with Cardboard packing, the cost will remain high and hence will not survive.
:-D

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New post 29 Jul 2009, 12:55
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Sudeep,Economist, You are making too many assumptions for B to be the correct answer. Why make it so complicated, guys?

Go with E. Thats the best/simple point which strenghtens the argument.

I would love to see the OA to be E....

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New post 29 Jul 2009, 14:22
Between A and E, I would go with E.

In A, why would smaller manufactures retool their factories. If they keep selling whatever they are selling today, small maufacturers don't need to retool their plants. Even though Larger manufacturers may reduce the overall cost and make more money but if they are not gaining market share then, small manufacturers won't feel the heat to retool their plants.

E - makes it clear that if consumers find concentrated detergents, then they would buy concentrated detergents when available in order to reduce cardboard waste. It would force smaller manufacturers to produce concentrated detergents and give up on old-style bulky detergents (if they have to remain in business).

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Re: Laundry Detergent [#permalink]

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New post 29 Jul 2009, 14:55
I reasoned it was A since I thought that it implied that smaller manufacturers would be forced to go out of business. I guess that assumption is too strong. The OA is E. However, E also assumes that because consumers buy the smaller packages, the larger ones will disappear, and given the 80% market share of the companies, that still leaves 20% producing large packages!

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Re: Laundry Detergent [#permalink]

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New post 30 Jul 2009, 00:59
sdrandom1 wrote:
Sudeep,Economist, You are making too many assumptions for B to be the correct answer. Why make it so complicated, guys?

Go with E. Thats the best/simple point which strenghtens the argument.

I would love to see the OA to be E....


Thanks!

Now, I need to restrict my thoughts!(simpler the better:))
Going Out of scope I guess!

I think B also assumes that customers will not be skeptical later.
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Re: Laundry Detergent [#permalink]

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New post 30 Jul 2009, 02:54
Hmmm...Agreed..:)
BTW what is the source?

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New post 30 Jul 2009, 07:01
its from an official LSAT test

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New post 31 Jul 2009, 09:17
E definitely.

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Re: Laundry Detergent [#permalink]

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OA is E, but why? i am not fully convinced :-(

the stimulus says that "Market analysts predict that the decision of three manufacturers . . . " highlighting that it should be manufacturer action that should cause change:

this is highlighted well in A, wherein they being 80% of market would impose problems for smaller players and "the very new" decision of these manufaturers would wipe old packaging.

In case of E its some other angle (consumers getting persuaded etc) which is causing the shift and not the manufactures actions per say (as predicted by analysts) . . this is out of scope and too far. like wise if there is a statement that says the shelves are getting smaller at super markets, we would be choosing that too??? we need to look at actions of manufacturer causing the change. isn't it. Am i thinking wrong??? had it been a question of weaken the argument then choosing a statement that proves its not the manufacturers effort but something else, would have made statement E the answer. what say?

i would stick to A. though i now know answer is E :-(
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e

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New post 01 Aug 2009, 13:42
Target760 wrote:
OA is E, but why? i am not fully convinced :-(

the stimulus says that "Market analysts predict that the decision of three manufacturers . . . " highlighting that it should be manufacturer action that should cause change:

this is highlighted well in A, wherein they being 80% of market would impose problems for smaller players and "the very new" decision of these manufaturers would wipe old packaging.

In case of E its some other angle (consumers getting persuaded etc) which is causing the shift and not the manufactures actions per say (as predicted by analysts) . . this is out of scope and too far. like wise if there is a statement that says the shelves are getting smaller at super markets, we would be choosing that too??? we need to look at actions of manufacturer causing the change. isn't it. Am i thinking wrong??? had it been a question of weaken the argument then choosing a statement that proves its not the manufacturers effort but something else, would have made statement E the answer. what say?

i would stick to A. though i now know answer is E :-(


A assumes that, by not retooling, the smaller industries will wipe out.
It may be possible that smaller companies will survive even without changing product to concentrated detergent.
**You can't assume that smaller companies will wipe out.
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Re: Laundry Detergent [#permalink]

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New post 01 Aug 2009, 20:19
sudeep wrote:
Target760 wrote:
OA is E, but why? i am not fully convinced :-(

the stimulus says that "Market analysts predict that the decision of three manufacturers . . . " highlighting that it should be manufacturer action that should cause change:

this is highlighted well in A, wherein they being 80% of market would impose problems for smaller players and "the very new" decision of these manufaturers would wipe old packaging.

In case of E its some other angle (consumers getting persuaded etc) which is causing the shift and not the manufactures actions per say (as predicted by analysts) . . this is out of scope and too far. like wise if there is a statement that says the shelves are getting smaller at super markets, we would be choosing that too??? we need to look at actions of manufacturer causing the change. isn't it. Am i thinking wrong??? had it been a question of weaken the argument then choosing a statement that proves its not the manufacturers effort but something else, would have made statement E the answer. what say?

i would stick to A. though i now know answer is E :-(


A assumes that, by not retooling, the smaller industries will wipe out.
It may be possible that smaller companies will survive even without changing product to concentrated detergent.
**You can't assume that smaller companies will wipe out.



Thanks for your reply, Sudeep

But i still don't get it. its just the way you are putting it; just as we can 'assume' that consumer will get persuaded by environment concerns, so too we can 'assume' that smaller companies will wipe out. . . as far i understand that each statement is to be considered a truth / a possibility and we need to pick the one that most strongly supports. . . am i getting it right? what say?

i think now it boils down to which of two A & E most strongly supports!! but how to decide which supports most strongly??
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New post 02 Aug 2009, 05:05
i think environmental concerns are quite big in america than in india dats why its e

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Re: Laundry Detergent [#permalink]

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New post 03 Aug 2009, 20:26
IMO E.

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Re: Laundry Detergent   [#permalink] 03 Aug 2009, 20:26

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