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01 Jun 2026, 14:45
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A certain watchmaker is attempting to increase its market share by deeply discounting the price of its watches for the upcoming holiday season. The discounts will eat into profits, but because they will be heavily advertised the watchmaker hopes that they will attract buyers away from rival watchmakers' products. In the long term, the watchmaker believes that consumers initially attracted by the discounts may become loyal customers.
In assessing the plan's chances of achieving its aim, it would be most useful to know which of the following?
(A) Whether the watchmaker's competitors are likely to respond by offering deep discounts of their own products
(B) Whether the advertisements will be created by the watchmaker's current advertising agency
(C) Whether some of the watch styles will be more deeply discounted than others
(D) Whether the watchmaker will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect
(E) Whether an alternative strategy might enable the watchmaker to enhance its profitability while holding a constant or diminishing share of the market
The OA will be automatically revealed on Tuesday 2nd of June 2026 02:45:31 PM Pacific Time Zone
In assessing the plan's chances of achieving its aim, it would be most useful to know which of the following?
(A) Whether the watchmaker's competitors are likely to respond by offering deep discounts of their own products
(B) Whether the advertisements will be created by the watchmaker's current advertising agency
(C) Whether some of the watch styles will be more deeply discounted than others
(D) Whether the watchmaker will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect
(E) Whether an alternative strategy might enable the watchmaker to enhance its profitability while holding a constant or diminishing share of the market
The OA will be automatically revealed on Tuesday 2nd of June 2026 02:45:31 PM Pacific Time Zone
BongBideshini
Joined: 25 May 2021
Last visit: 02 Jun 2026
Posts: 278
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Location: India
Concentration: Entrepreneurship, Marketing
Schools: HBS '27 Stanford '27 Wharton '27 Sloan '27
GPA: 3.8
WE:Engineering (Government)
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01 Jun 2026, 19:51
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(A) Whether the watchmaker's competitors are likely to respond by offering deep discounts of their own products
The entire plan relies on a relative price advantage to steal customers from rivals. If competitors react by matching the deep discounts, the watchmaker no longer looks cheaper, and consumers have zero incentive to switch brands. The strategy fails. If competitors do not match the discounts, the plan has a high chance of working.
(B) Whether the advertisements will be created by the watchmaker's current advertising agency
It makes no logical difference whether the company uses its existing ad agency or hires a brand-new one, as long as the ads go out.
(C) Whether some of the watch styles will be more deeply discounted than others
Knowing that the watchmaker drops the price of leather-strap watches by 40% and steel-strap watches by 20% doesn't help us evaluate the macro-level success of the plan. The primary question is whether discounting as a whole will attract rival buyers, regardless of the individual item breakdown
(D) Whether the watchmaker will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect
The text explicitly states two things: the aim is to increase market share, and they already know discounts will eat into profits.
(E) Whether an alternative strategy might enable the watchmaker to enhance its profitability while holding a constant or diminishing share of the market
This introduces a completely different, hypothetical plan. The question asks us to assess the chances of this specific plan achieving its aim of boosting market share.
Ans A
The entire plan relies on a relative price advantage to steal customers from rivals. If competitors react by matching the deep discounts, the watchmaker no longer looks cheaper, and consumers have zero incentive to switch brands. The strategy fails. If competitors do not match the discounts, the plan has a high chance of working.
(B) Whether the advertisements will be created by the watchmaker's current advertising agency
It makes no logical difference whether the company uses its existing ad agency or hires a brand-new one, as long as the ads go out.
(C) Whether some of the watch styles will be more deeply discounted than others
Knowing that the watchmaker drops the price of leather-strap watches by 40% and steel-strap watches by 20% doesn't help us evaluate the macro-level success of the plan. The primary question is whether discounting as a whole will attract rival buyers, regardless of the individual item breakdown
(D) Whether the watchmaker will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect
The text explicitly states two things: the aim is to increase market share, and they already know discounts will eat into profits.
(E) Whether an alternative strategy might enable the watchmaker to enhance its profitability while holding a constant or diminishing share of the market
This introduces a completely different, hypothetical plan. The question asks us to assess the chances of this specific plan achieving its aim of boosting market share.
Ans A
Bunuel
01 Jun 2026, 22:18
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during holiday season, watch company wants to increase market share by giving discount on its watches.
this discount will hurt their profit but they will be advertising heavily so they are hoping that they will attract buyers from rivals.
conclusion- this discounted customers may turn into loyal customers.
A if yes, then their hope of taking rivals customers away wont hold ground. but if no, then they are good on the track with the planning. so keep.
B who cares about who is going to create ads. they can use chatgpt or any AI chatbot to do that. dont really matter. out.
C wrong comparison with regards to point of discussion here.
D this sounds good, but its attacking different part of arguments. and thats not conclusion here, out.
E their goal is to turn the discounted customer into loyal one. this choice has no impact on that claim. reject.
Ans A
this discount will hurt their profit but they will be advertising heavily so they are hoping that they will attract buyers from rivals.
conclusion- this discounted customers may turn into loyal customers.
A if yes, then their hope of taking rivals customers away wont hold ground. but if no, then they are good on the track with the planning. so keep.
B who cares about who is going to create ads. they can use chatgpt or any AI chatbot to do that. dont really matter. out.
C wrong comparison with regards to point of discussion here.
D this sounds good, but its attacking different part of arguments. and thats not conclusion here, out.
E their goal is to turn the discounted customer into loyal one. this choice has no impact on that claim. reject.
Ans A
Bunuel
