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04 Nov 2006, 07:43
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Came across this juicy morsel while skinning this weeks practice CAT. Remember to explain your answer for the greater benefit of all fellow high scoring V aspirants.
*Note, since I took the full 15 minutes to manually key in this mindbender, I also took the liberty of adding a few bells and whistles to tighten the spread.
In recent years the retail book business has seen many of its smaller retailers go out of business. Some analysists have attributed the demise of these small operations to the rise of internet book retailers, whose direct-to-customer business model has allowed them to offer books at lower prices than traditional retailers. These analysts must be incorrect, however, because even after several years in business these internet book retailers account for less than 15% of the total retail book market.
Which of the following, if true, would most weaken the argument that the analysists are incorrect?
A. A recent article in the Wall Street Journal noted that the demise of many small booksellers has been attributed to the rise of a new chain of super-store bookstores, whose predatory business practices have forced smaller operators out of the business.
B. The low prices of internet book retailers is deceptive, because most of the savings in retail price are passed on to customers through high shipping costs and online transaction fees.
C. Most high profile internet booksellers have gone out of business in recent years.
D. In a survey of over 100,000 book consumers, nearly 75% clearly expressed a preference to be able to thoroughly peruse a book before deciding to make a purchase.
E. The low prices of internet retailers have been so heavily advertised with "pop-up" banners that prices have been pushed down throughout the industry.
*Note, since I took the full 15 minutes to manually key in this mindbender, I also took the liberty of adding a few bells and whistles to tighten the spread.
In recent years the retail book business has seen many of its smaller retailers go out of business. Some analysists have attributed the demise of these small operations to the rise of internet book retailers, whose direct-to-customer business model has allowed them to offer books at lower prices than traditional retailers. These analysts must be incorrect, however, because even after several years in business these internet book retailers account for less than 15% of the total retail book market.
Which of the following, if true, would most weaken the argument that the analysists are incorrect?
A. A recent article in the Wall Street Journal noted that the demise of many small booksellers has been attributed to the rise of a new chain of super-store bookstores, whose predatory business practices have forced smaller operators out of the business.
B. The low prices of internet book retailers is deceptive, because most of the savings in retail price are passed on to customers through high shipping costs and online transaction fees.
C. Most high profile internet booksellers have gone out of business in recent years.
D. In a survey of over 100,000 book consumers, nearly 75% clearly expressed a preference to be able to thoroughly peruse a book before deciding to make a purchase.
E. The low prices of internet retailers have been so heavily advertised with "pop-up" banners that prices have been pushed down throughout the industry.
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04 Nov 2006, 07:56
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GMATT73
Wow this one is tough
Umm here is my take
Conclusion is that analysts are incorrect in attributing the decline of small businesses to online-retailers.
To weaken, I mainly used process of elimination which actually shows that the analysts are not incorrect and the online retailing does have an impact on small businesses.
A) This is saying that the cause is some other store. So out
B)costs with shipping, etc Irrelevant
C)If internet retailers have gone out of business so they are not impacting the small business. Out
D)This shows that 75 % people want to peruse before making the purchase so if they don't like the book, they are not going to purchase it. The online option gives them a choice on whether to make the final purchase or not. So online retail is the cause
E) This could have been, that prices have been pushed down through out hte industry but it doesn't show that if consumers will stop buying at the small stores.
Anyways, will wait for some more explanations. Btw where did you get this from?
04 Nov 2006, 11:00
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I am inclined towards E.
The conclusion states that the analysis (that internet had droven the small retailers out of business) is incorrect.
If there is any reason to believe that internet is responsible in any way other than direct sales, it would do the trick.
If prices have been pushed down by internet adverstising to such an extent that it is not a profitable venture for small booksellers to continue, then the analysis is correct.
The conclusion states that the analysis (that internet had droven the small retailers out of business) is incorrect.
If there is any reason to believe that internet is responsible in any way other than direct sales, it would do the trick.
If prices have been pushed down by internet adverstising to such an extent that it is not a profitable venture for small booksellers to continue, then the analysis is correct.
