mallya12 wrote:
VeritasPrepBrianThank 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"
mallya12 ,
I think that a response will not make sense until the conclusion is clear. I think you got really turned around.
It is easy to get turned around.
Reason backwards in this question. Your assertions do not reason backwards. You keep starting with everything except the conclusion.
Quote:
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.
No. Sales of Supercomp computers cannot have been high.
Just because the plan was supposed to produce increased Supercomp sales
does not mean that the plan worked.
If Supercomp sales had been high, why would analysts think that Supercomp's marketing failed?
Reason backwards.Start with what the analysts think.
Read really carefully.
Fact: Supercomp convinced some computer dealers to sell Supercomp's home computers.
Fact: These dealers may have carried other brands. We are told nothing.
Fact: Supercomp ran a big marketing campaign.
Fact: Dealers' sales of computers GENERALLY increased significantly.
Problem #1: we do not know whether the increased sales came from the purchase of HOME computers, office computers, car computers, spaceship computers, etc.
The words say only that dealers achieved dramatically increased sales
of computers last month. The words do NOT say "dramatically increased sales of HOME computers."
Problem #2: even if the entire sales increase was created by more sales of
home computers (the kind that Supercomp makes), we are NEVER told whether the dealers actually sold any
Supercomp computers.
We think about these problems when we see the conclusion that
analysts doubt that the marketing plan is bringing SuperComp the desired success.Why would analysts doubt? Because Supercomp's sales went UP? No.
Why do analysts doubt? What must they be looking at? Bad sales numbers.
Again: Analysts doubt that the marketing plan worked because
Supercomp's sales did NOT increase even during a general rise in computer sales.
Marketing Plan success = increased sales
If MP, then increased sales.
If X, then Y.
Contraposition (valid!) (Reasoning backwards)
If not Y, then not X.
If no increased sales?
Then marketing plan was NOT successful.
Stated differently: If the marketing plan had been successful, Supercomp would have increased its sales.
There is exactly one reason, in other words, for the analysts to doubt that Supercomp's marketing plan worked.
The one reason is that
Supercomp's computer sales did not go up.
Quote:
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.
I hope that I clarified what seems to be a lot of confusion about the conclusion here.
Analysts think that the marketing plan failed because Supercomp's sales were low.
Now we have to find the answer that supports the analysts' doubt.
Something is wrong.
Sales of computers generally increased significantly.
But analysts think that Supercomp's marketing plan did not work. Supercomp should have had high sales.
Analysts doubt that the "increase sales" marketing plan worked almost certainly because sales of
Supercomp home computers were NOT high, were NOT a big part of the increase.
Why would dealers sell very few Supercomp computers at the same time that dealers are selling a lot more computers generally?
(1) Something is wrong with Supercomp's computers compared to other brands' computers. In a retail market sense, something is wrong.
Maybe:
-- Supercomp computers cost too much compared to other brands' computers
-- Supercomp computers gave dealers a smaller profit margin than other brands' computers did
-- Other brands offered both buyer and seller incentives that Supercomp did not offer
Or
maybe
(2) the increase in sales of "computers" was NOT an increase in sales of
home computers.
Only one answer fits.
Option C gives us what we need to support what the analysts believe.
(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.
Break it downSuperComp’s dealers also sell OTHER brands of computers -- the dealers do not sell only Supercomp computers.
-- the dealers sell OTHER brands' computers and the dealers sell Supercomp's computers
[The other brands' computers] are very similar to SuperComp’sOTHER brands' computers = same quality as Supercomp's computers
. . . but [the other brands' computers are] less expensive than Supercomp's computers.Same quality, lower price?
Inference: consumers bought lots of the OTHER brands' computers
... and [the other brands' computers] afford the dealers a significantly higher markup.Another inference: DEALERS have more incentive to sell OTHER brands' computers more than dealers have to sell Supercomp's computers.
Consumers paid less for, and bought more of, OTHER brands' computers.
Dealers made more on, and wanted to sell more of, OTHER brands' computers.
Bottom line: Supercomp did not sell a lot of computers even though computer sales rose dramatically.
Supercomp could not compete.
Supercomp sold very few computers, despite its marketing plan, because it couldn't compete.
Supercomp had no increase in sales.
THAT fact is why analysts doubt that the marketing plan worked. The marketing plan was supposed to increase sales. It did not do so.
The answer is C.
Hope that helps.