Because tires have become longer lasting and cheaper

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 391
Joined: Sat Mar 02, 2013 5:13 am
Thanked: 50 times
Followed by:4 members
Because tires have become longer lasting and cheaper, tire retailers are being forced to find new sources of revenue. Some stores are selling more services, such as tire rotations and oil changes, and others are selling a broader range of products, such as seat covers, air fresheners, and other amenities. Neither strategy will work, however, because people who are shopping for tires don't buy anything other than tires.

Which of the following, if true, would most seriously weaken the conclusion about the strategies that tire retailers are using?

A. Many consumers purchase inexpensive services and products wherever they can be purchased most conveniently.
B. Because tires are sold at a high margin, no other services or products can ever replace the revenue made from tires.
C. Tire retailers have thrived even though tires have steadily become more durable and less expensive for the past 50 years.
D. Consumers often buy only two tires at a time, as tires wear out at different rates depending upon which wheel they're on.
E. Consumers who have a positive experience with a retailer tend to return to that retailer for other services and products.

User avatar
Legendary Member
Posts: 643
Joined: Wed Aug 14, 2013 4:27 am
Thanked: 48 times
Followed by:7 members

by vinay1983 » Thu Oct 10, 2013 10:27 pm
rakeshd347 wrote:Because tires have become longer lasting and cheaper, tire retailers are being forced to find new sources of revenue. Some stores are selling more services, such as tire rotations and oil changes, and others are selling a broader range of products, such as seat covers, air fresheners, and other amenities. Neither strategy will work, however, because people who are shopping for tires don't buy anything other than tires.

Which of the following, if true, would most seriously weaken the conclusion about the strategies that tire retailers are using?

A. Many consumers purchase inexpensive services and products wherever they can be purchased most conveniently.
B. Because tires are sold at a high margin, no other services or products can ever replace the revenue made from tires.
C. Tire retailers have thrived even though tires have steadily become more durable and less expensive for the past 50 years.
D. Consumers often buy only two tires at a time, as tires wear out at different rates depending upon which wheel they're on.
E. Consumers who have a positive experience with a retailer tend to return to that retailer for other services and products.

E for me.What is the OA?Though I also feel A is a strong contender
You can, for example never foretell what any one man will do, but you can say with precision what an average number will be up to!

User avatar
Legendary Member
Posts: 1556
Joined: Tue Aug 14, 2012 11:18 pm
Thanked: 448 times
Followed by:34 members
GMAT Score:650

by theCodeToGMAT » Thu Oct 10, 2013 10:35 pm
Is it [spoiler]{A}[/spoiler]?
R A H U L

Master | Next Rank: 500 Posts
Posts: 391
Joined: Sat Mar 02, 2013 5:13 am
Thanked: 50 times
Followed by:4 members

by rakeshd347 » Thu Oct 10, 2013 10:41 pm
theCodeToGMAT wrote:Is it [spoiler]{A}[/spoiler]?
Hi Rahul,

OA is E mate. I gave a kaplan test today and this question was in there. I scored 720 and this question came somewhere in the last. What do you think. Is this question hard or just awkward? I got this wrong too and picked
A

User avatar
Legendary Member
Posts: 1556
Joined: Tue Aug 14, 2012 11:18 pm
Thanked: 448 times
Followed by:34 members
GMAT Score:650

by theCodeToGMAT » Thu Oct 10, 2013 10:49 pm
rakeshd347 wrote:
theCodeToGMAT wrote:Is it [spoiler]{A}[/spoiler]?
Hi Rahul,

OA is E mate. I gave a kaplan test today and this question was in there. I scored 720 and this question came somewhere in the last. What do you think. Is this question hard or just awkward? I got this wrong too and picked
A
hello Rakesh,
That's a nice score.. I am so scared of MOCKs :| mostly i don't complete QUANT :(
Anyways, I am confused between {A} & {E} .. I decided to go with {A} as it looked more general.
R A H U L

User avatar
Legendary Member
Posts: 643
Joined: Wed Aug 14, 2013 4:27 am
Thanked: 48 times
Followed by:7 members

by vinay1983 » Fri Oct 11, 2013 3:12 am
Whenever I give mocks i score SC > RC > CR. anyways why i feel E is the correct option is because it says" that people come again there because they have felt nice not because they want to purchase extra things or non important things"

A says " I can buy anything i want whenever i can" this is like ok, so what? Nothing! Also note "Many" people here. Do we know that for sure?

Just my 2 cents.

@Rakesh excellent score, as far as i have seen your activity you are on the path to acheive more than that on the actual test. All the best.

Aside: I envy you
You can, for example never foretell what any one man will do, but you can say with precision what an average number will be up to!

Legendary Member
Posts: 512
Joined: Mon Jun 18, 2012 11:31 pm
Thanked: 42 times
Followed by:20 members

by sana.noor » Fri Oct 11, 2013 3:58 am
it is E, if customer only goes to that retailer with whom consumers have positive experience, then such strategies wont work,
if u got 720 in kaplan test then u can easily achieve 700+ in real gmat
Work hard in Silence, Let Success make the noise.

If you found my Post really helpful, then don't forget to click the Thank/follow me button. :)

Master | Next Rank: 500 Posts
Posts: 391
Joined: Sat Mar 02, 2013 5:13 am
Thanked: 50 times
Followed by:4 members

by rakeshd347 » Fri Oct 11, 2013 4:50 am
sana.noor wrote:it is E, if customer only goes to that retailer with whom consumers have positive experience, then such strategies wont work,
if u got 720 in kaplan test then u can easily achieve 700+ in real gmat
Well I scored 710 3 times last time in kaplan tests when I gave gmat and 710 710 700 in veritas prep and 700 in gmatprep but I end up getting 690 in the real test. 690 is not bad but I want 700+ :)

Senior | Next Rank: 100 Posts
Posts: 39
Joined: Mon Sep 02, 2013 12:27 am
Thanked: 1 times
GMAT Score:650

by cd86 » Fri Oct 18, 2013 1:35 am
There is no reason I see for A being wrong.

A. Many consumers purchase inexpensive services and products wherever they can be purchased most conveniently.

so everytime (whenever) people go to these retailers, they end up buying the other products and services..hence proved that the strategy is working. Why is this wrong?

User avatar
Junior | Next Rank: 30 Posts
Posts: 12
Joined: Wed Oct 31, 2012 12:24 pm
Thanked: 1 times

by AppleBees » Fri Oct 18, 2013 5:49 am
A is not wrong, but the question stem asks "which of the following would MOST seriously...."

Therefore, you have to compare E and A to determine which is the BEST option.

IMO, A is not as good because of two reasons:

1. offering inexpensive services and products does create revenue but does not maximize it.

2. the argument does not state tire retailers are the most conveniently place for purchase. For example, you can probably purchase some of the products more conveniently and cheaper online or at a dealership.

E is good because it states directly that as long as a good experience is provided by the retailer, consumers tend to return to that (very specific here, meaning the retailer using the argument's strategy) retailer for other services and products.
cd86 wrote:There is no reason I see for A being wrong.

A. Many consumers purchase inexpensive services and products wherever they can be purchased most conveniently.

so everytime (whenever) people go to these retailers, they end up buying the other products and services..hence proved that the strategy is working. Why is this wrong?