700+ Densmore

charu_mahajan wrote:Hi Varun,

I guess I have read the question thoroughly and hence the discussion.

First of all, I do not understand the language here - E) How the sale price compare to those for comparable, non-discounted products.
Like 'Sales Price of what??' , "compared to those for..."..?? Was the question written this way or is it a copy paste error.

Well....so now we already have an inexpensive product, (Densmore is advertising that its new, more inexpensive product lines, already priced lower than its top-selling luxury items, are on sale for 30% off.) and the company is giving an additional 30% off.

So are you trying to tell me that you are comparing the one after 30% off with one before the discount.

In that case I'll try to bring in my knowledge from Manhattan GMAT - The right answer choice in evaluate questions should present a two way path and answering a Yes or NO should either strengthen or weak the CONCLUSION.

The conclusion here is - Advertising its discounted prices is the most effective way of attracting potential customers.

So the correct answer choice here must address the question whether Advertising is the most effective way or not, which is precisely what D does.

I agree that I'm not a genius and am open to discussion.

I'll appreciate if an EXPERT from VERITAS PREP can answer this. Thanks in advance.

shenoydevika wrote:Hey charu,

I'm no expert but I will try to explain this to you.
I was confused about the language too and after re-reading everything a couple of times, I think I understand now.

Densomore Company, known for its luxury goods.......begun marketing to consumers who, when surveyed, have stated that they usually purchase products priced at or below the prevailing market rate.

Now Densmore has priced its inexpensive product line below its own luxury line and then discounted it. But how do these prices compare with other goods in the market? Say Densmore's products after discount and everything is $10 but Company Y is selling the same kind of products at $8 and Company X is selling similar stuff at $7.5. The consumers who were surveyed and others like them would buy Company X's products and not Densmore's.

We are told how Densmore's new products are priced lower than the products in Densmore's luxury line but now how those new products compare with other(possibly cheaper) products in the market. Hence, E

Makes sense now?