Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Sep 0212:30 AM EDT
-01:30 AM EDT
Thought your job leaves no time for GMAT prep? After multiple GMAT attempts and a demanding consulting job, Kshitij improved to 695 in under 2 months. Learn the mindset shifts, study strategy, and execution changes that made the breakthrough possible.
Aug 2710:00 AM EDT
-11:00 AM EDT
We’ve worked incredibly hard to build TTP into the best test prep experience possible, and it would mean a lot to us to win Newsweek’s 2026 Readers’ Choice Award for Best Test Prep. If TTP has helped you, we’d be incredibly grateful for your vote.
Sep 0208:00 PM PDT
-09:00 PM PDT
Video explanations + diagnosis of 10 weakest areas + 150+ short videos + study plan!
Sep 0301:30 AM EDT
-02:30 AM EDT
At one point, she believed GMAT wasn’t for her. After scoring 595, self-doubt crept in and she questioned her potential. But instead of quitting, she made the right strategic changes. The result? A remarkable comeback to 695. Check out how Saakshi did it.
Sep 0410:00 AM PDT
-11:00 AM PDT
What does test anxiety really look like on the GMAT? For many test takers, it does not look like a panic attack. Instead, it shows up as brain fog, rereading, negative comparisons, mental noise....
Sep 0609:30 AM EDT
-12:30 PM EST
Top scores are possible when you enroll in a powerful EA course, taught live online + 6 months access to TTP OnDemand video courses included! Perfect class schedule and easy course access for working professionals. Class starts Sundays Sept. 6, 2026.- Sep 07
12:01 AM PDT
-11:59 PM PDT
On the 7th, GMAT Club Tests will be Free! Including all the Quizzes, Questions, and Tests. 12 AM - 11:59 PM PDT - Sep 09
07:00 AM PDT
-10:00 AM PDT
Meet AdComs and explore top Master’s programs - MiM, MiF, MSc, MSBA and more. - Application Fee Waivers - Free 1-Week of GMAT Club Tests: - Master's Application Toolkit - Grand Prize Giveaway 
Sep 1507:00 PM EDT
-09:00 PM EST
Elite scores are possible when you enroll in a powerful GMAT course, taught live online + 6 months access to TTP OnDemand video courses included! Class starts Tues/Thurs Sept. 15, 2026 - Nov. 15, 2027, 7:00pm-9:00pm EST
Sep 2108:00 PM EDT
-10:00 PM EDT
Boost your GMAT score in less than one month in a live online class + 6 months access to TTP OnDemand video courses included! Class starts Mon, Tues, Wed, Thur, Fri Sept. 21, 2026 - Oct. 9, 2027, 7:00pm-10:00pm EST
Updated on: 29 Oct 2023, 03:54
Originally posted by Sajjad1994 on 10 Mar 2022, 08:00.
Last edited by BottomJee on 29 Oct 2023, 03:54, edited 2 times in total.
Last edited by BottomJee on 29 Oct 2023, 03:54, edited 2 times in total.
Moved to new forum
Kudos
Bookmarks
Marketers theorize that consumers’ purchase decisions are driven by the perception of value. This perception, often obtained through a cost-benefit analysis, can be manipulated by adding more features or by reducing the price. This is called the expectancy-value model. Let’s see an example.
Jack, who wants to purchase a laptop, has narrowed down his choices to 4 brands of laptop computers (A, B, C, D). He 1s interested in 5 attributes: Processor Performance (PP), Graphics Capability (GC), Size & Weight (SW), Battery life (BL), & Marked Price (MP) and is evaluating the offerings based on the same. Jack puts 30% priority on Processor Performance, 10% on Graphic Capability, and equal priority on Size & Weight, Battery life, and Price. He comes up with a number called Composite Attribute Value that is the weighted average of the performance of a brand’s offering against Jack’s priorities.
Each attribute is rated from 0 to 10, where 10 represents the highest performance.
Jack, who wants to purchase a laptop, has narrowed down his choices to 4 brands of laptop computers (A, B, C, D). He 1s interested in 5 attributes: Processor Performance (PP), Graphics Capability (GC), Size & Weight (SW), Battery life (BL), & Marked Price (MP) and is evaluating the offerings based on the same. Jack puts 30% priority on Processor Performance, 10% on Graphic Capability, and equal priority on Size & Weight, Battery life, and Price. He comes up with a number called Composite Attribute Value that is the weighted average of the performance of a brand’s offering against Jack’s priorities.
Each attribute is rated from 0 to 10, where 10 represents the highest performance.
Composite Attribute Value for Jack is greatest for brand A.: No
Jack purchase brand A based on customer value.: Yes
Brand C scores lowest both in terms of customer value and Customer benefit.: Yes
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
39% (04:51) correct
61%
(03:52)
wrong
based on 566
sessions
History
Date
Time
Result
Not Attempted Yet
1. Consider each of the information given in tabs. Does the information in three tabs support the inference as stated below?
| Yes | No | |
| Composite Attribute Value for Jack is greatest for brand A. | ||
| Jack purchase brand A based on customer value. | ||
| Brand C scores lowest both in terms of customer value and Customer benefit. |
ShowHide Answer
Official Answer
Composite Attribute Value for Jack is greatest for brand A.: No
Jack purchase brand A based on customer value.: Yes
Brand C scores lowest both in terms of customer value and Customer benefit.: Yes
\(X=\frac{Y(Z-5)}{5}\)
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
77% (01:30) correct
23%
(01:31)
wrong
based on 564
sessions
History
Date
Time
Result
Not Attempted Yet
2. Let X denote Customer Value, Y denote Customer Cost, and let Z denote Composite Attribute Value. Which of the following algebraic expressions represents relationship among X, Y & Z?
| \(X=\frac{Y(Z-5)}{5}\) | |
| \(X=\frac{4}{5*Y*Z}\) | |
| \(X=\frac{Y(5-Z)}{5}\) | |
| \(X=\frac{Y}{5(5-Z)}\) | |
| \(X=\frac{YZ-5Z}{5}\) |
ShowHide Answer
Official Answer
\(X=\frac{Y(Z-5)}{5}\)
Reduce the marked price to $60.: No
Add a faster processor to increases its Processor Performance rating to 9.: Yes
Improve its graphics capability to the highest possible ranking.: Yes
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
47% (01:49) correct
53%
(01:39)
wrong
based on 608
sessions
History
Date
Time
Result
Not Attempted Yet
3. If Jack will decide buying laptop based on Customer Value, which of the possible strategies should company C implement so that it becomes Jack’s preferred choice?
| Yes | No | |
| Reduce the marked price to $60. | ||
| Add a faster processor to increases its Processor Performance rating to 9. | ||
| Improve its graphics capability to the highest possible ranking. |
ShowHide Answer
Official Answer
Reduce the marked price to $60.: No
Add a faster processor to increases its Processor Performance rating to 9.: Yes
Improve its graphics capability to the highest possible ranking.: Yes
Attachment:
2.jpg [ 83.38 KiB | Viewed 9163 times ]
Attachment:
1.jpg [ 74.58 KiB | Viewed 9533 times ]
15 Jun 2024, 00:46
Kudos
Bookmarks
Given - Jack, who wants to purchase a laptop, has narrowed down his choices to 4 brands of laptop computers (A, B, C, D). He 1s interested in 5 attributes: Processor Performance (PP), Graphics Capability (GC), Size & Weight (SW), Battery life (BL), & Marked Price (MP) and is evaluating the offerings based on the same. Jack puts 30% priority on Processor Performance, 10% on Graphic Capability, and equal priority on Size & Weight, Battery life, and Price. He comes up with a number called Composite Attribute Value that is the weighted average of the performance of a brand’s offering against Jack’s priorities.
Lets create a table using the priority as he given.
Brand PP GC SW BL MP applying priority --> PP(30%) GC(10%) SW(20%) BL(20%) MP(20%) CCAV
A 8 6 4 4 8 -------------------> 2.4 0.6 0.8 0.8 1.6 6.2
B 6 9 6 4 6 -------------------> 1.8 0.9 1.2 0.8 1.2 5.9
C 5 4 9 7 4 -------------------> 1.5 0.4 1.8 1.4 0.8 5.9
D 7 8 4 6 7 -------------------> 2.1 0.8 0.8 1.2 1.4 6.3
Hence,
1. Composite Attribute Value for Jack is greatest for brand A. --- No. (Highest value is for brand D)
2. Jack purchase brand A based on customer value.
For this lets calculate Customer value for each brand,
But before that we need to calculate CB - Customer benefit = CC * CCAV / 5
CBforA = CCforA * CCAV / 5 = 150*6.2 / 5 = 186
Similarly CBforB = 139*5.9/5 = 164.02, CBforC = 127*5.9/5 = 149.86 and CBforD = 122*6.3/5 = 153.72
From this we will calculate Customer value
CVforA = CBforA - CCforA = 186 - 150 = 36
CVforB = CBforB - CCforB = 164.02 - 139 = 25.02
CVforC = CBforC - CCforC = 149.86 - 127 = 22.86
CVforD = CBforD - CCforD = 153.72 - 122 = 31.72
As CV is high for A Therefore, Jack purchase brand A based on customer value - Yes.
3. Brand C scores lowest both in terms of customer value and Customer benefit. - Yes
4. Let X denote Customer Value, Y denote Customer Cost, and let Z denote Composite Attribute Value. Which of the following algebraic expressions represents relationship among X, Y & Z
This one was straight forward Option A - X = (Y*Z/5) - Y = Y*(Z/5 - 1)
X = Y*((Z-5)/5)
5. If Jack will decide buying laptop based on Customer Value, which of the possible strategies should company C implement so that it becomes Jack’s preferred choice?
For this we will need some observation check
i. Reduce the marked price to $60. - This doesn't going to impact on Customer Value it will still remain same. Hence No.
ii. Add a faster processor to increases its Processor Performance rating to 9. - This will impact on CCAV, Value will increase by +1.2 also, it will increase value of CV. Hence Yes.
iii. Improve its graphics capability to the highest possible ranking. - Maximum possible ranking is 10 this will impact on CCAV, Value will increase by +0.6 also, it will increase value of CV. Hence Yes.
Lets create a table using the priority as he given.
Brand PP GC SW BL MP applying priority --> PP(30%) GC(10%) SW(20%) BL(20%) MP(20%) CCAV
A 8 6 4 4 8 -------------------> 2.4 0.6 0.8 0.8 1.6 6.2
B 6 9 6 4 6 -------------------> 1.8 0.9 1.2 0.8 1.2 5.9
C 5 4 9 7 4 -------------------> 1.5 0.4 1.8 1.4 0.8 5.9
D 7 8 4 6 7 -------------------> 2.1 0.8 0.8 1.2 1.4 6.3
Hence,
1. Composite Attribute Value for Jack is greatest for brand A. --- No. (Highest value is for brand D)
2. Jack purchase brand A based on customer value.
For this lets calculate Customer value for each brand,
But before that we need to calculate CB - Customer benefit = CC * CCAV / 5
CBforA = CCforA * CCAV / 5 = 150*6.2 / 5 = 186
Similarly CBforB = 139*5.9/5 = 164.02, CBforC = 127*5.9/5 = 149.86 and CBforD = 122*6.3/5 = 153.72
From this we will calculate Customer value
CVforA = CBforA - CCforA = 186 - 150 = 36
CVforB = CBforB - CCforB = 164.02 - 139 = 25.02
CVforC = CBforC - CCforC = 149.86 - 127 = 22.86
CVforD = CBforD - CCforD = 153.72 - 122 = 31.72
As CV is high for A Therefore, Jack purchase brand A based on customer value - Yes.
3. Brand C scores lowest both in terms of customer value and Customer benefit. - Yes
4. Let X denote Customer Value, Y denote Customer Cost, and let Z denote Composite Attribute Value. Which of the following algebraic expressions represents relationship among X, Y & Z
This one was straight forward Option A - X = (Y*Z/5) - Y = Y*(Z/5 - 1)
X = Y*((Z-5)/5)
5. If Jack will decide buying laptop based on Customer Value, which of the possible strategies should company C implement so that it becomes Jack’s preferred choice?
For this we will need some observation check
i. Reduce the marked price to $60. - This doesn't going to impact on Customer Value it will still remain same. Hence No.
ii. Add a faster processor to increases its Processor Performance rating to 9. - This will impact on CCAV, Value will increase by +1.2 also, it will increase value of CV. Hence Yes.
iii. Improve its graphics capability to the highest possible ranking. - Maximum possible ranking is 10 this will impact on CCAV, Value will increase by +0.6 also, it will increase value of CV. Hence Yes.
15 Jun 2024, 00:53
Kudos
Bookmarks
I think the first question itself serves as a hint that certain calculations are necessary to answer questions quickly:
Spending a few minutes to construct the table is essential:
A) From the First tab, we can compute the Composite Attribute Value for each of the Brands:
Composite Attribute Value (CAV)= [(Weight of Attribute 1*Ranking of Attribute 1)+(Weight of Attribute 2*Ranking of Attribute 2)+(Weight of Attribute 3*Ranking of Attribute 3)+(Weight of Attribute 4*Ranking of Attribute 4)+(Weight of Attribute 5*Ranking of Attribute 5)]/Total Weight
Note: The total weight (here) would be 1 (0.3+0.1+0.2+0.2+0.2)
B) We can calculate the Customer Benefit and Customer Value using the following formulas
Customer Benefit= Customer Cost* CAV/5 (per the second tab)
Customer Value= Customer Benefit- Customer Cost (per the second tab)
Now, I believe the questions should be a breeze to answer.
GMAT-Club-Forum-xkb988ks.png [ 19.88 KiB | Viewed 3171 times ]
GMAT-Club-Forum-6lvw2p25.png [ 8.08 KiB | Viewed 3152 times ]
Spending a few minutes to construct the table is essential:
A) From the First tab, we can compute the Composite Attribute Value for each of the Brands:
Composite Attribute Value (CAV)= [(Weight of Attribute 1*Ranking of Attribute 1)+(Weight of Attribute 2*Ranking of Attribute 2)+(Weight of Attribute 3*Ranking of Attribute 3)+(Weight of Attribute 4*Ranking of Attribute 4)+(Weight of Attribute 5*Ranking of Attribute 5)]/Total Weight
Note: The total weight (here) would be 1 (0.3+0.1+0.2+0.2+0.2)
B) We can calculate the Customer Benefit and Customer Value using the following formulas
Customer Benefit= Customer Cost* CAV/5 (per the second tab)
Customer Value= Customer Benefit- Customer Cost (per the second tab)
Now, I believe the questions should be a breeze to answer.
Attachment:
GMAT-Club-Forum-xkb988ks.png [ 19.88 KiB | Viewed 3171 times ]
Attachment:
GMAT-Club-Forum-6lvw2p25.png [ 8.08 KiB | Viewed 3152 times ]
