People aged 46 to 55 spend more money per capita than people of any ot

Question

People aged 46 to 55 spend more money per capita than people of any other age group. So it is puzzling that when companies advertise consumer products on television, they focus almost exclusively on people aged 25 and under. Indeed, those who make decisions about television advertising think that the value of a television advertising slot depends entirely on the number of people aged 25 and under who can be expected to be watching at that time.

Which one of the following, if true, most helps to explain the puzzling facts stated above?

(A) The expense of television advertising slots makes it crucial for companies to target people who are most likely to purchase their products.

(B) Advertising slots during news programs almost always cost far less than advertising slots during popular sitcoms whose leading characters are young adults.

(C) When television executives decide which shows to renew, they do so primarily in terms of the shows’ ratings among people aged 25 and under.

(D) Those who make decisions about television advertising believe that people older than 25 almost never change their buying habits.

(E) When companies advertise consumer products in print media, they focus primarily on people aged 26 and over.

PriyamRathor · Answer

So at first this question talks about spending habits of People aged b/w 46-55
then it talks about advertisement companies focusing on people aged 25 and below to advertise their products on television.
 Here we can clearly see the paradox :-
ie despite the fact that people aged b/w 46-55 spend more .. advertisement companies still focus on people aged 25 and below while advertising their products.

Now the question sways away from this paradox and talks about the factors on which the value of a television advertisement slot depends.

Question stem asks to choose an answer choice which will help to explain the puzzling fact.
What is the puzzling fact ?
 despite the fact that people aged b/w 46-55 spend more .. advertisement companies still focus on people aged 25 and below while advertising their products

We can expect a answer choice somewhat in this line :--
Even though people aged b/w 45-66 spend more , people aged 25 and below are the ones who will be interested in their product and will buy the products or persuade people b/w 45-66 to buy their products.(their- advertisement companies)

Strangely none of the answer choice talks about this. All of them talk about the advertisement slot.

Now there are two events that are related:-
1. Advertisement companies focusing on people aged 25 and below.
2.Those who make decisions about television advertising think that the value of a television advertising slot depends entirely on the number of people aged 25 and under who can be expected to be watching at that time.

Why do the decision makers think that value of a TAS depends on whether the focused group( people aged 25 and under) can be expected to be watching at that time?
Obviously because they are ones that will be interested in their products and would buy them.

Choice A is in line with our pre-thinking.

Choice B
 Incorrect 
Cost of Advertisement slots of new programs and sitcoms are being discussed which is IRRELEVANT

Choice C
 Incorrect 
Renewal of advertisement and shows rating is not our concern

Choice D
 Incorrect 
People older than 25 is a very large group. Nothing has been mentioned about them in the passage.
Only two groups 46-55 and 25 and below are talked about.

Choice E
 Incorrect 
Print media and people aged 26 and over are not talked about in the passage.

PS : When we look at the answer choice A it is worded in such a way that one will think how the heck this can solve the paradox ?? But when we look on a broader level we can infer 
FOCUSING on people aged 25 and below-->>Why?-->Because they are the ones who will be interested in their products-->>Will buy the products or will persuade the people b/w 45-66 ( probably their parents ) to buy the products for them-->> and   hence value of TAS depends on whether the focused group who will buy their products are actually watching TV at that time .

Took me 2 min 36 secs
Thanks
Feedback Appreciated

Gio96 · Answer

Hi team, could you please provide an official explanation?

I'm not clear at all, why is D instead of A the correct choice.

Even if it is true that " Those who make decisions about television advertising believe that people older than 25 almost never change their buying habits. ", never is mentioned about people under 26 in that aspect.

I understand that also choice A provide the same ambiguity, but why preferring D to A?

Regards.

pratiksha1998 · Answer

Can Someone explain the answer?

balaganesh98 · Answer

pratiksha1998 
This is my take on the question. I chose option A too, but i believe option D is correct.
Here's why, if people aged 46 to 55 never change their habits, then the people who already consume their products in this age group will continue to do so, and the ones who do not will not buy their products.(there's no point trying to advertise to them)

Hence, targeting 25 years olds is the best solution.

Posted from my mobile device

Ag03 · Answer

D is preferable over A, because Option A states it as a blanket truth that 25 and under are ,most likely to purchase any product.

Whereas, D expands on the reasoning given in the second part of the argument.

wadhwakaran · Answer

People aged 46 to 55 spend more money per capita than people of any other age group. So it is puzzling that when companies advertise consumer products on television, they focus almost exclusively on people aged 25 and under. Indeed, those who make decisions about television advertising think that the value of a television advertising slot depends entirely on the number of people aged 25 and under who can be expected to be watching at that time.

Age group 46 to 55: spends more money per capita meaning
no of people in Age group 46 to 55 are 100
Total money spent by people Age group 46 to 55 is 100000
Per capita spending - 1000
No. of Children less than 25 are 200
Total money spent by Children less than 25 is 150000
per capita spending - 750
still the advertisers prefer advertisement for children less than 25
 Because the advertisers know that the people in age group of 46-55 have a fixed choice and they do not get swayed by the advertisement of new products. Therefore, advertisement of new products won't help the manufacturers as the tastes in this age group become permanent. Therefore option D

Fido10 · Answer

GMATNinja  , can you please help on this one ?

Aishyk97 · Answer

Hi,
Let me try to help with this one.
What is the puzzling fact?
People aged 46 to 55 spend more money per capita than people of any other age group. But companies focus on advertising almost exclusively to people aged 25 and under.

I see most people are stuck between A and D.

Option A: The expense of television advertising slots makes it crucial for companies to target people who are most likely to purchase their products. - This is true in the real world. But this option does not specify who those people are. It could be people aged 25 and under or it could be people aged 46 to 55. We do not know.

Option D: Those who make decisions about television advertising believe that people older than 25 almost never change their buying habits. - This option talks about the people making the advertising decisions. If they believe that people older than 25 almost never change their minds, there is no use of advertising to them. It would be more beneficial to advertise to people who would get convinced and may at least try their product.

This is why D is a much stronger contender than A.

VerbalBot · Answer

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People aged 46 to 55 spend more money per capita than people of any ot

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