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.
Apr 2212:30 AM EDT
-01:30 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.
Apr 1612:00 PM EDT
-11:59 PM EDT
You’re first to know: Save $200 on GMAT prep starting tomorrow, 4/13. Get 6 official practice tests and study with real questions. Be ready to save!
Apr 2301:30 AM EDT
-02:30 AM EDT
Struggling with GMAT Verbal as a non-native speaker? Harsh improved his score from 595 to 695 in just 45 days—and scored a 99 %ile in Verbal (V88)! Learn how smart strategy, clarity, and guided prep helped him gain 100 points.
Apr 2308:00 PM PDT
-09:00 PM PDT
Video explanations + diagnosis of 10 weakest areas + 150+ short videos + study plan!
Apr 2610:00 AM EDT
-11:00 AM EDT
The Target Test Prep course represents a quantum leap forward in GMAT preparation, a radical reinterpretation of the way that students should study. Try before you buy with a 5-day, full-access trial of the course for FREE!
Apr 2711:00 AM EDT
-12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors
Apr 2808:00 AM PDT
-11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.
30 Mar 2023, 01:30
Kudos
Bookmarks
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
81% (01:58) correct
19%
(02:07)
wrong
based on 110
sessions
History
Date
Time
Result
Not Attempted Yet
Experia Inc , one of the pioneers in the online retailing in the cosmetics business, does not have a physical presence and sells all its products through its website. While evaluating its various marketing channels to make the best use of its funds, the company has discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on the fact whether he/she came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google.
Which of the following casts the most doubt on the ability of the plan to achieve its objective of increasing the sales of the company?
A. Whereas almost all online retailers advertise their products on Google, there are only a few retailers, especially in the cosmetics business, which use Cosmetico as a marketing channel
B. In the past, it has been seen that in case of customer originating from Cosmetico that such customers become regular customers of the company and make most of their latter purchases by directly visiting the company’s website.
C. The average order size of a customer depends more on the product line of the company than any characteristic of the customer
D. The average monthly costs of advertising at Google is just a small fraction of the average monthly costs of advertising at Cosmetico
E. It has been observed that the customers who come through Google are generally more satisfied with the Experia’s products than customers who come from Cosmetico and the former also praise the Experia’s products on various online forums while the latter do not.
Which of the following casts the most doubt on the ability of the plan to achieve its objective of increasing the sales of the company?
A. Whereas almost all online retailers advertise their products on Google, there are only a few retailers, especially in the cosmetics business, which use Cosmetico as a marketing channel
B. In the past, it has been seen that in case of customer originating from Cosmetico that such customers become regular customers of the company and make most of their latter purchases by directly visiting the company’s website.
C. The average order size of a customer depends more on the product line of the company than any characteristic of the customer
D. The average monthly costs of advertising at Google is just a small fraction of the average monthly costs of advertising at Cosmetico
E. It has been observed that the customers who come through Google are generally more satisfied with the Experia’s products than customers who come from Cosmetico and the former also praise the Experia’s products on various online forums while the latter do not.
03 Jun 2023, 06:56
Kudos
Bookmarks
Bunuel B is the answer. This statement suggests that customers who initially come through Cosmetico tend to become loyal customers of Experia Inc. and make subsequent purchases directly from the company's website. If this trend continues, shifting marketing funds from Cosmetico to Google may not effectively increase sales since the customers acquired through Cosmetico have a tendency to make repeat purchases without relying on the magazine as a marketing channel.
This information undermines the assumption that the number of visitors or the average purchase amount is the sole determinant of sales growth. It highlights the importance of customer loyalty and the potential long-term value of customers acquired through Cosmetico.
This information undermines the assumption that the number of visitors or the average purchase amount is the sole determinant of sales growth. It highlights the importance of customer loyalty and the potential long-term value of customers acquired through Cosmetico.
Moderators:
