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To persuade consumers to buy its personal computers for home use

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To persuade consumers to buy its personal computers for home use  [#permalink]

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New post Updated on: 10 Oct 2018, 21:38
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A
B
C
D
E

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To persuade consumers to buy its personal computers for home use, SuperComp has enlisted computer dealers in shopping centers to sell its product and launched a major advertising campaign that has already increased public awareness of the SuperComp brand. Despite the fact that these dealers achieved dramatically increased sales of computers last month, however, analysts doubt that the marketing plan is bringing Super Comp the desired success.

Which of the following, if true, best supports the claim that the analysts’ doubt is well founded?

(A) In market surveys, few respondents who had been exposed to SuperComp’s advertising campaign said they thought there was no point in owning a home computer.

(B) People who own a home computer often buy a second such computer, but only rarely do people buy a third computer.

(C) SuperComp’s dealers also sell other brands of computers that are very similar to SuperComp’s but less expensive and that afford the dealers a significantly higher markup.

(D) The dealers who were chosen to sell SuperComp’s computers were selected in part because their stores are located in shopping centers that attract relatively wealthy shoppers.

(E) Computer-industry analysts believed before the SuperComp campaign began that most consumers who already owned home computers were not yet ready to replace them.

The passage states that the stores through which SuperComp is selling its computers are experiencing dramatically increased sales. Analysts doubt, however, that SuperComp's plan for selling this computers for home use is really working. The question asks you to identify a fact that justifies the analysts' doubt.

Choice C is the best answer. If consumers who are drawn to a SuperComp dealer find less expensive alternatives that the dealer has a strong incentive to sell to them, the analysts' doubt is justified, since it is likely that the increase in the dealer's sales is due not to sales of SuperComp's computers, but rather to sales of these other brands.

Choice A is incorrect; it suggests that there is a market for home computers, so does nothing to justify the analysts' doubts.

Choice B is incorrect because it provides information about the consumers' buying inclinations, but does not provide justification for the analysts' doubts, given that the dealers were actually selling more computers than usual.

Choice D is incorrect since it suggests that SuperComp chose well-located dealers, and does nothing to justify the analysts' doubts.

Finally, the beliefs mentioned in choice E, which were formed before the campaign, cannot justify the analysts' doubts in the face of the evidence about increased sales.

Originally posted by garimavyas on 12 May 2011, 08:36.
Last edited by bb on 10 Oct 2018, 21:38, edited 3 times in total.
Edited the question.
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Re: To persuade consumers to buy its personal computers for home use  [#permalink]

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New post 12 May 2011, 12:09
[highlight]sales of these dealers surged[/highlight] last month but analysts [highlight]doubt that the marketing plan is brining Super Comp the desired success.[/highlight]

altough "D" is tempting but "C" fullfill the requirement.

SuperComp’s dealers also sell other brands of computers that are very similar to SuperComp’s but less
expensive and that afford the [highlight]dealers a significantly higher markup.[/highlight]
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New post 12 May 2011, 14:54
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+1 C

Dealers will prefer to sell the computers which provide them a higher markup. Buyers will prefer cheaper and similar computers.
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New post 12 May 2011, 22:48
C clearly gives the reason how the dealers achiever increase in sales.

C is clean.

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New post 12 May 2011, 23:37
C is the OA , i managed this in 2:12 min , my timing stinks with CR . need to do something about that soon.
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New post 12 May 2011, 23:49
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My two cents -

Considering that you have been frequent to the GMAT club forum and have answered good number of questions in SC,CR and RC forums already -

Ill suggest --

1. Take a time bound practice session for CR and see how many correct answers you get.Once you are able to stick with your accuracy,then start decreasing the time limit for each CR and speed up.

2. Figure out which kind of CR troubles you the most and have a random stab through of those CR's quite frequently. This will boost your confidence overall for CR's and hence improve your timing.

Don't be too hard on yourself --Its expectations Vs a Reality check that always keeps things in perspective.

Good luck with your preparations.
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New post 14 May 2012, 11:19
patanahi wrote:
[highlight]sales of these dealers surged[/highlight] last month but analysts [highlight]doubt that the marketing plan is brining Super Comp the desired success.[/highlight]

altough "D" is tempting but "C" fullfill the requirement.

SuperComp’s dealers also sell other brands of computers that are very similar to SuperComp’s but less
expensive and that afford the [highlight]dealers a significantly higher markup.[/highlight]


Guys I have some observations regarding this CR question. I am a bit confused so I will try to explain my logic as clear as possible:

The question asks:
“Which of the following, if true, best supports the claim that the analysts’ doubt is well founded?”

So I started looking for the analyst’s claim:
“Despite the fact that these dealers achieved dramatically increased sales of computers last month, however, analysts doubt that the marketing plan is brining Super Comp the desired success.”

So Whats the marketing plan?:
“SuperComp has enlisted computer dealers in shopping centers to sell its product and launched a major advertising campaign that has already increased public awareness of the SuperComp brand”

So the way I see the argument is like these:
SuperComp wants more sales. How? SuperComp’s marketing strategy: enlist dealers + advertising campaign. Doubt: Marketing plan is not working and it is not responsible for the increase in sales.

The OG answer: C
(C) SuperComp’s dealers also sell other brands of computers that are very similar to SuperComp’s but less expensive and that afford the dealers a significantly higher markup.
The problem with this answer is that it negates the possibility that the increase in sales is because an increase in sales in the “similar brand PC’s” AND "SuperComp’s PC’s".

On the other hand, (A):
“A) In market surveys, few respondents who had been exposed to SuperComp’s advertising campaign said they thought there was no point in owning a home computer.”
Answer A demonstrates that the “major advertising campaign” had no effect on few respondants (Maybe potential costumers), yeah its a weak point but I still think that this answer should be better than (C).

Please HELP!!!!

PS: Sorry for my bad english.
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New post 19 May 2012, 04:18
C

Because Success of Dealer and SuperComp is not aligned with each other' success.

In this case, although Dealers are successful, Option C properly explains why it doesn't transfer in the success of SuperComp initiative.
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Re: To persuade consumers to buy its personal computers for home use  [#permalink]

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New post 30 Jun 2014, 13:25
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Bunuel wrote:

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Passage
To persuade consumers to buy its personal computers for home use, SuperComp has enlisted computer dealers in shopping centers to carry its product and launched a major advertising campaign that has already increased public awareness of the SuperComp brand. Despite the fact that these dealers achieved dramatically increased sales of computers last month, however, analysts doubt that SuperComp’s products accounted for much of that increase.

Question
Which of the following, if true, best supports the claim that the analysts’ doubt is well founded?

A. In market surveys, few respondents who had been exposed to SuperComp’s advertising campaign said they thought there was no point in owning a home computer.

B. People who own a home computer often buy a second such computer, but only rarely do people buy a third computer.

C. SuperComp’s dealers also sell other brands of computers that are very similar to SuperComp’s but less expensive and that afford the dealers a significantly higher markup.

D. The dealers who were chosen to sell SuperComp’s computers were selected in part because their stores are located in shopping centers that attract relatively wealthy shoppers.

E. Computer-industry analysts believed before the SuperComp campaign began that most consumers who already owned home computers were not yet ready to replace them.


The passage states that the stores through which SuperComp is selling its computers are experiencing dramatically increased sales. Analysts doubt, however, that SuperComp's plan for selling tis computers for home use is really working. The question asks you to identify a fact that justifies the analysts' doubt.

Choice C is the best answer. If consumers who are drawn to a SuperComp dealer find less expensive alternatives that the dealer has a strong incentive to sell to them, the analysts' doubt is justified, since it is likely that the increase in the dealer's sales is due not to sales of SuperComp's computers, but rather to sales of these other brands.

Answer: C.
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Re: To persuade consumers to buy its personal computers for home use  [#permalink]

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New post 14 Aug 2015, 07:47
"analysts doubt that SuperComp's products accounted for much of that increase." What does this exactly mean?

Analysts feel that supercomp's products are responsible for the increase

or

Analysts feel that SuperComp's products are not responsible for the increase.

Im confused because nowhere in the argument it is mentioned that Supercomp's products caused the increase.

Please explain!
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Re: To persuade consumers to buy its personal computers for home use  [#permalink]

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New post 07 Oct 2015, 08:02
Mechmeera wrote:
"analysts doubt that SuperComp's products accounted for much of that increase." What does this exactly mean?

Analysts feel that supercomp's products are responsible for the increase

or

Analysts feel that SuperComp's products are not responsible for the increase.

Im confused because nowhere in the argument it is mentioned that Supercomp's products caused the increase.

Please explain!


Analysts have a doubt that the dramatic increase in the sales of computers was due to SuperComp’s products. It means Analysts believe that “Not SuperComp’s products but products from other brands or something else caused the increase in sales.

C. SuperComp’s dealers also sell other brands of computers that are very similar to SuperComp’s but less expensive and that afford the dealers a significantly higher markup. – Correct
Yes, there were computers from other brands which were similar but less costly than those from SuperComp’s. These computers from other brands actually accounted for the increase in sales not SuperComp’s
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Re: To persuade consumers to buy its personal computers for home use  [#permalink]

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New post 30 Jun 2016, 15:49
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I would first paraphrase the question which is basically saying why is this a stupid idea. Then I would figure out why they're selling lots of computers but they're not successful. C is the only choice that touches on sales but not successful - when you look at the stimuli, it says they are selling lots of computers but not necessarily super comp computers. So there's a scope shift between super comp and computers. Hope this helps!

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New post 01 Jul 2016, 00:39
D seems very tempting but is not relevant

The passage says ... "dealers achieved dramatically increased sales of computers" .... It does not say that all of the computers that they sold were SuperComp brand.
Hence it is C which explains company's plan is not working.
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Re: To persuade consumers to buy its personal computers for home use  [#permalink]

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New post 01 Jul 2016, 09:36
C it is.Delaers always do want to make profit.
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New post 19 Feb 2019, 07:14
Despite the fact that these dealers achieved dramatically increased sales of computers last month, however, analysts doubt that the marketing plan is bringing Super Comp the desired success.

what does this conclusion mean? If there is an increase in the sales of computer why do the analysts doubt??

I thought it was not the dealers but the marketing plan(advertisement) is responsible for super comps success.

Can someone please explain the conclusion.
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Re: To persuade consumers to buy its personal computers for home use  [#permalink]

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New post 19 Feb 2019, 09:55
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mallya12 wrote:
Despite the fact that these dealers achieved dramatically increased sales of computers last month, however, analysts doubt that the marketing plan is bringing Super Comp the desired success.

what does this conclusion mean? If there is an increase in the sales of computer why do the analysts doubt??

I thought it was not the dealers but the marketing plan(advertisement) is responsible for super comps success.

Can someone please explain the conclusion.



Really good question. The conclusion is saying "yes sales are up at these retailers, but analysts don't think that the marketing plan is bringing SuperComp the sales it wants."

A couple common CR themes are in play here:

1) Correlation vs. causation. That's a really common theme in CR problems - just because two things occurred together (the marketing plan and increased sales at the retailers) doesn't mean that one caused the other. The most common way to expose that flaw is finding an alternate cause.

2) "Mismatched" specificity. Notice here that SuperComp implemented the marketing plan...but the increased sales aren't attributed to SuperComp, but instead to "the retailers who sell SuperComp" - that should scream to you "wait, we don't know that sales of SuperComp are up - it could be sales of something else the retailer sells!"

If you're looking at either of those you should be in good shape here. Technically this one is more about #2 (there's a good argument that the marketing plan *is* the cause of extra sales...just not for SuperComp) but as you're training yourself to recognize flaws you can see that this one is a combination of those two.
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New post 19 Feb 2019, 11:28
VeritasPrepBrian

Thank you for all the helpful information.

Well just one doubt, The official Answer posted here tells that "Analysts doubt that SuperComp's plan for selling this computers for home use is really working"


What I thought is Super Comps plans are successful but their success is attributed to their marketing plans(Advertisement) and not because of the dealers.

In short sales of super comps was high - reason: because of marketing and not because of the dealers.

I guess I am misinterpreting the conclusion(whatever I am describing is contradicting to the official explanation i.e the sales of super comps is not high)

Could you please clarify this.
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New post 19 Feb 2019, 19:10
VeritasPrepBrian VeritasKarishma GMATNinja generis

I have a question regarding option E

Currently the option E is :-

Quote:
(E) Computer-industry analysts believed before the SuperComp campaign began that most consumers who already owned home computers were not yet ready to replace them.


If the option E were this :-

Quote:
(E) Computer-industry analysts believed after the SuperComp campaign began that most consumers who already owned home computers were not yet ready to replace them.


Would it be correct answer choice then ??
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To persuade consumers to buy its personal computers for home use  [#permalink]

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New post 19 Feb 2019, 20:48
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Quote:
To persuade consumers to buy its personal computers for home use, SuperComp has enlisted computer dealers in shopping centers to carry its product and launched a major advertising campaign that has already increased public awareness of the SuperComp brand. Despite the fact that these dealers achieved dramatically increased sales of computers last month, however, analysts doubtthatSuperComp's products accounted for much of that increase.

Which of the following, if true, best supports the claim that the analysts' doubt is well founded?

warrior1991 wrote:
VeritasPrepBrian VeritasKarishma GMATNinja generis

I have a question regarding option E

Currently the option E is :-

Quote:
(E) Computer-industry analysts believed before the SuperComp campaign began that most consumers who already owned home computers were not yet ready to replace them.

If the option E were this :-
Quote:
(E) Computer-industry analysts believed after the SuperComp campaign began that most consumers who already owned home computers were not yet ready to replace them.


Would it be correct answer choice then ??

warrior1991 , I confess, I am at a loss.

I cannot figure out where you want to go with this argument.
Make the argument:
how does this new E support the analysts' doubt?

Given the premises—no, I cannot see how changing E
to the second version would support the analysts' doubt.

Fact: Supercomp enlisted dealers to carry Supercomp's home computers.
Supercomp did massive advertising.
Fact: dealers' sales of computers generally increased dramatically.

We are never told that any portion of the sales increase went to Supercomp.

Analysts say: Supercomp's products were not a big portion of that sales increase.

Why, if computers are selling well generally,
do analysts think that Supercomp's products account for very little of the sales increase?
We want to support the analysts' doubt.

I think E has too many variables to control for.

One, something must distinguish the computers that sell from those that do not:
Kind (office vs. home)? price? quality? (Answer C, dealer profit plus consumer gets lower price?)
Answer E as written does not distinguish computers that sold from those sold by Supercomp.
I think that you may be assuming that only Supercomp sells home computers.

Two, E assumes that the most important computer purchasers to watch are those people
who already own a home computer but who aren't ready to buy another yet.

Let's say that every computer sold in the marginal increase was a home computer.
But everyone in E stayed home.

Analysts' doubt per option E in this scenario? Not supported. If the increase was all due to home computer sales, given the marketing campaign, analysts should believe that Supercomp did remarkably well.

Everyone who does NOT fit in the group defined by E must have gone to buy a home computer.
Did almost everyone in that group avoid buying a Supercomp home computer? We don't know.

If home computer sales increased overall, then E,
however it is formulated, does not support the analysts' doubt.

Option E focuses on too narrow a portion of the home computer buying population.
We need to know
(1) that Supercomp and only Supercorp makes home computers,
and
(2) that buyers who already own a home computer are the most important buyers to watch to determine sales patterns.

What if this population in E constitutes only 10% of the home computer buying population?

We have no idea. When the analysts figure out that this specific population
is not yet ready to buy does not matter much . . .

unless we also know that this population is a huge portion of all home computer buyers
and that only Supercomp makes home computers.

• IF people who already own a home computer
constitute a huge portion of ALL home computer buyers,
and that population is not ready to buy; and
• IF Supercomp is the only company selling home computers;
• THEN the increase in sales of computers was NOT an increase in sales of home computers,
(because the group in E stayed home), and the doubting analysts are correct.

Then the analysts could say:
• The vast majority of purchasers who buy and thus drive sales in the home-computer market
did not want to buy right then. No one came out to buy home computers. Doubt supported.
• Many people came out to buy not-home computers. They bought office computers instead.
Sales went up for other kinds of computers. Facts not contradicted.

I hope that helps.
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Re: To persuade consumers to buy its personal computers for home use  [#permalink]

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New post 19 Feb 2019, 20:58
generis Yeah !! I get the point you make.

I should keep in mind the fact that it is not given what percentage the people who already own computer constitutes of?

If they are the one who are going to impact the sales of the Supecomp company, E will be correct otherwise NOT

In this case C is better than E.

Thank you yet again for a quick and a crisp response. I cannot thank you enough for helping me out every time. I owe you 'n' number of parties :) :)
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Re: To persuade consumers to buy its personal computers for home use   [#permalink] 19 Feb 2019, 20:58

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