Advertisements & VCRs

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 168
Joined: Thu Nov 01, 2012 7:43 pm
Thanked: 1 times

Advertisements & VCRs

by pareekbharat86 » Sat Dec 14, 2013 7:08 am
Many television viewers own videocassette recorders (VCR's). Companies that advertise on television complain that VCR ownership hurts their business, since a VCR makes it possible to view television programs without watching the commercials. Indeed, two-thirds of those who tape programs on a VCR edit out the commercials when viewing the programs.
Which of the following, if true, would most strengthen the companies' complaint that VCR ownership is currently hurting their business?
(A) The methods for determining audience size, which in turn determines charges for advertising time, count households that are merely recording a program as households that are watching it.
(B) VCR manufacturers who advertise on television would themselves suffer the damage, if any, to advertisers' interests that is caused by VCR's.
(C) There are VCR's that are in the early stages of development that will automatically edit out commercials during the recording process.
(D) Those who tape programs on VCR's, but who do not edit out commercials when viewing the programs, tape more often than those who do edit out the commercials.
(E) Some television commercials are as entertaining or informative as the programs they interrupt.

OA is A
Thanks,
Bharat.

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 16207
Joined: Mon Dec 08, 2008 6:26 pm
Location: Vancouver, BC
Thanked: 5254 times
Followed by:1268 members
GMAT Score:770

by Brent@GMATPrepNow » Sat Dec 14, 2013 8:47 am
pareekbharat86 wrote:Many television viewers own videocassette recorders (VCR's). Companies that advertise on television complain that VCR ownership hurts their business, since a VCR makes it possible to view television programs without watching the commercials. Indeed, two-thirds of those who tape programs on a VCR edit out the commercials when viewing the programs.
Which of the following, if true, would most strengthen the companies' complaint that VCR ownership is currently hurting their business?
(A) The methods for determining audience size, which in turn determines charges for advertising time, count households that are merely recording a program as households that are watching it.
(B) VCR manufacturers who advertise on television would themselves suffer the damage, if any, to advertisers' interests that is caused by VCR's.
(C) There are VCR's that are in the early stages of development that will automatically edit out commercials during the recording process.
(D) Those who tape programs on VCR's, but who do not edit out commercials when viewing the programs, tape more often than those who do edit out the commercials.
(E) Some television commercials are as entertaining or informative as the programs they interrupt.

OA is A
PREMISE: 2/3 of viewers edit out TV ads
CONCLUSION: VCR ownership is currently hurting those who advertise on TV

A. The rates that advertisers pay are based on the notion that RECORDING a program is the same as VIEWING the program (but this is not the case). This means that advertisers are charged for households that didn't actually see the ads (since 2/3 of viewers edit out the commercials). In other words, these businesses are paying for ads that never get seen. This strengthens the conclusion that VCR ownership hurts those who advertise on TV.
KEEP A for now.

B. This suggests that VCR manufacturers who advertise on TV (rather than the other businesses) would suffer the damages. If anything, this weakens the argument.
ELIMINATE B.

C: Out of scope. The argument concerns what is PRESENTLY occurring to businesses.
ELIMINATE C.

D: We're already told that 2/3 of those who tape shows edit out the ads. THIS is what's causing the problems for advertisers. This has no affect on the conclusion.
ELIMINATE D.

E: So what? This has no affect on the conclusion.
ELIMINATE E.

Answer: A

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
Image

User avatar
Master | Next Rank: 500 Posts
Posts: 359
Joined: Wed Mar 11, 2009 4:37 am
Location: Kolkata, India
Thanked: 50 times
Followed by:2 members

by Abhishek009 » Sat Dec 14, 2013 9:41 am
pareekbharat86 wrote:Many television viewers own videocassette recorders (VCR's). Companies that advertise on television complain that VCR ownership hurts their business, since a VCR makes it possible to view television programs without watching the commercials. Indeed, two-thirds of those who tape programs on a VCR edit out the commercials when viewing the programs.
Which of the following, if true, would most strengthen the companies' complaint that VCR ownership is currently hurting their business?


Many TV owners have VCR's , makes it possible to view tv programmes without commercials.

TV Commercial Co's complain VCR hurting their Business.

2 out of 3 edit the commercials while recording for further viewing..


(A) The methods for determining audience size, which in turn determines charges for advertising time, count households that are merely recording a program as households that are watching it.

Advertisement cost - Depends on Households which are vieing the programmes , but VCR makes it possible for viewers to edit the videos and acting as a hindrance sending the message to the targeted audience...

This is indeed an obstacle for the Companies spending money on advertisements as well as Pricing of these Advertisement by Advertising Companies...

This strengthens / supports the Problem mentioned in the passage..

(B) VCR manufacturers who advertise on television would themselves suffer the damage, if any, to advertisers' interests that is caused by VCR's.

How can VCR manufacturers suffer ? Infact they are threatening Television Commercial Advertisements.

(C) There are VCR's that are in the early stages of development that will automatically edit out commercials during the recording process.

Out of scope ...

(D) Those who tape programs on VCR's, but who do not edit out commercialswhen viewing the programs, tape more often than those who do edit out the commercials.

It's word and awkward , those who don't tape TV Programmes = Same as watching the TV programmes.

Further the option suggests they tape more often...

What is the ultimate use of taping a programme if they are already viewing TV Commercials ??

(E) Some television commercials are as entertaining or informative as the programs they interrupt.

Might be some programmes are interesting , informative and Entertaining but how does it strengthen the conclusion that : the companies' complaint that VCR ownership is currently hurting their business?

Hence (A) looks to best to me...
Abhishek