Official Solution:
Production of hybrid cars has seen significant growth over the last year. To capitalize on this trend, AutoMart plans to increase the production of its hybrid model while also enhancing its marketing efforts for this vehicle.
Which of the following, if true, provides the most support for the view that AutoMart cannot increase its sales of hybrid cars by adopting the plan outlined above?
A. AutoMart has sold every hybrid car it has produced, but its market share in the hybrid car segment has decreased over the last year.
B. The inventory of AutoMart hybrid cars awaiting shipment to dealerships has slightly decreased over the last year.
C. AutoMart’s hybrid car brand is widely recognized due to its marketing, yet few consumers are aware that AutoMart is the manufacturer.
D. Despite reducing the price of its hybrid cars, AutoMart has seen a decline in sales of these vehicles over the past year.
E. AutoMart’s hybrid model is one of three brands that have accounted for the majority of the increase in hybrid car sales over the last year.
NOTE: This type of a question asks for which answer choice provides the most support (it means some other answer choices may provide support too but not as much; also, this means the correct answer may not provide 100% guarantee that the plan will fail in 100% cases but all we need is to cast doubt and choose which answer choice casts the most doubt. This is different from other questions that may require a much higher level of proof such as resolve the paradox or weaken/strengthen or assumption questions.
(A) Incorrect - this answer choice is not weakening the plan. It indicates that there is growth happening and the company’s sales are limited by the capacity to produce (it is losing market share becuase it can’t produce enough cars and competitors are outselling it). It is not losing market share because its cars are simply outsold, but because it is unable to sell more cars. This strengthens the plan’s viability to sell more cars, not weakens.
(B) Incorrect - This is a neutral answer choice with slight positive impact (opposite of what we need). This suggests that current production is well-matched to sales, indicating that increasing production could be beneficial if demand is stimulated with marketing.
(C) Incorrect - This strengthens the plan’s viability (opposite of what we need). Answer choice (C) could be leveraged to improve sales, indicating that increasing marketing efforts might indeed be effective.
(D) Correct Answer: this answer choice actually provides one possible reason why increasing production and enhancing marketing may not lead to increased sales for AutoMart. The fact that sales of AutoMart’s hybrid cars have declined despite a price reduction indicates that there are other issues affecting sales that likely won’t be addressed by increasing production (they can’t sell their cars already) and likely will face headwinds even with enhanced marketing efforts. This is the only answer choice that provides support that AutoMart may not be able to increase its sales. (It does not guarantee, but we do not need a guarantee for this question type - see the above note as to why).
(E) Incorrect - This strengthens the plan’s viability (opposite of what we need). Knowing that AutoMart's hybrid is among the top sellers suggests that the brand is already popular, potentially indicating that increased production and marketing could effectively capitalize on this popularity rather than suggesting it wouldn't help sales.
Answer: D