Advertisers Hurting Because of VCR's

Expert replies

fighting_cax: Senior | Next Rank: 100 Posts; Posts: 67; Joined: Sat Feb 16, 2008 8:07 pm; Location: Philippines; Thanked: 3 times

by fighting_cax » Wed Nov 19, 2008 3:27 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.

Please explain.

Source: Beat The GMAT — Critical Reasoning | Wed Nov 19, 2008 3:27 am

mals24: Legendary Member; Posts: 683; Joined: Tue Jul 22, 2008 1:58 pmFollowed by: 2 members; Location: Dubai; Thanked: 73 times

by mals24 » Wed Nov 19, 2008 4:06 am

IMO A

According to A audience size determines the charges of advertisements. Now if the audience size increases, the ad charges will also increase.

Audience size incorrectly puts households that record TV shows in the category of households that are watching these programs as they are being aired. So they assume that a large number of households are in fact watching the ads.

For instance, Audience size = 100
Suppose 20 households record TV shows.
However as per choice A, these 20 are included in the audience size of 100 and when the audience size increases, the ad charges also increase and the companies ad expenses will also go up thereby hurting these companies.

slash: Senior | Next Rank: 100 Posts; Posts: 50; Joined: Fri Oct 24, 2008 12:25 am; Location: New York, US

by slash » Wed Nov 19, 2008 4:14 am

@ mals24

The argument does not discuss about charges for advertising time it discuss about tape programs on a VCR edit out the commercials when viewing the programs.

So option A is not the answer

I will go with option C

Curently two-third of people who tape programs on a VCR edit out the commercials when viewing the programs. The current two-third group pf people will increase if the VCR's are available with feature of automatically edit out commercials during the recording process.

So I prefer C

rohangupta83: Legendary Member; Posts: 541; Joined: Thu May 31, 2007 6:44 pmFollowed by: 3 members; Location: UK; Thanked: 21 times; GMAT Score:680

by rohangupta83 » Wed Nov 19, 2008 4:23 am

agree with mals24 imo - A

VCR's under development which will eventually automatically exclude advertisements during recording is totally out of scope.

the question is not concerned with what 'could' happen in future but a reason which would strengthen that because of VCR's companies are incurring losses (of any kind).

mals24: Legendary Member; Posts: 683; Joined: Tue Jul 22, 2008 1:58 pmFollowed by: 2 members; Location: Dubai; Thanked: 73 times

by mals24 » Wed Nov 19, 2008 4:26 am

@ slash

I had narrowed down the options to A and C

I ruled out C because the question is asking what would most strengthen the companies’ complaint that VCR ownership is currently hurting their business?

In option C, the new VCRs are still in the early stages of development and are hence not available in the market. So these VCRs will hurt the companies but in the future when they are launched. So this rules out C.

slash: Senior | Next Rank: 100 Posts; Posts: 50; Joined: Fri Oct 24, 2008 12:25 am; Location: New York, US

by slash » Wed Nov 19, 2008 4:29 am

Thanks Guys...

Karen: GMAT Instructor; Posts: 101; Joined: Sun Oct 26, 2008 5:32 pmFollowed by: 16 members; Location: NY and Boston; Thanked: 56 times

by Karen » Wed Nov 19, 2008 6:33 am

You guys already solved it -- it's A, and the explanations above for why it's not C are great. I just wanted to add that this kind of question shows why it's so important to look back to the set-up (the first paragraph of a CR) and doublecheck the wording when you're deciding between two answers. The question says "Companies that advertise on television complain that VCR ownership hurts their business". That's critical, because it means that evidence (such as A) that they're spending money for nothing is in scope -- it strengthens the argument that the VCRs are hurting their business. The same words "hurting their business" are repeated in the question stem.

If it had been worded differently, such as "Companies that advertise on television complain that VCR ownership reduces the size of the audience for their ads," and then asked merely which piece of evidence would provide the most support for their complaint, A would be out of scope.

When I'm solving them, I always look back to the original wording to make sure it all fits together.

Karen van Hoek, PhD
Verbal Specialist

Test Prep New York
maximize your score, minimize your stress
www.testprepny.com
[email protected]

vanessa.m: Master | Next Rank: 500 Posts; Posts: 100; Joined: Tue Aug 05, 2014 3:58 am

by vanessa.m » Fri May 13, 2016 1:52 am

I also more inclened to option C

nicolette: Master | Next Rank: 500 Posts; Posts: 197; Joined: Tue Apr 22, 2014 4:03 am

by nicolette » Fri May 13, 2016 1:53 am

I'd be shocked if it wasn't A

GMAT Course Reviews

563 reviews

1168 reviews

431 reviews

359 reviews

147 reviews

5/5

5 Star (563 Reviews)

"Target Test Prep is the closest to the official version of the GMAT exam, about 99% accuracy in terms of the quality and quantity of information. The course has excellently created singular sets of focused lessons and tests for every possible topic that one could come across in the official GMAT exam."

"The TTP course maximizes the efficiency of the time you spend studying. It will take time and effort but I could almost guarantee that if you complete the course exactly as it is laid out you will get an amazing score. They also have a very responsive team willing to help with any questions you might have."

"TTP has two things that I think no other test prep company offers: A teaching approach that reinforces understanding and an attitude that will give you the mental preparedness needed to succeed on the test. TTP gives you a deep understanding of the concept you need to know while teaching you how to think."

Write a Review