GMATPrep: Mammoth Industries

1)Though shares decline it doesnt mean that sales wont increase ....Irrelevant
2)I think if we infer too much it would be true but in general sense lower shipment rates will not stop sales increase though same ad campagin is used
4)Good True but irrelvant for this conclusion(case)
5)Price fell in last year doesnt mean that sales will decline this year as they are planning for bulk production

so i think C
reasons
now advertising policy is not correct as it only focuses on brand name of the company...so advertisment may not help in sales of product.

Premises: Everyone is selling more phones.
Conclusion: Mammoth will produce more Mammoth phones, and continue to advertize them. This will take advantage of increase -

Question stem: which AC says that Mammoth will NOT increase sales?

Analysis: apparently, mammoth believe that they can make more phones than they currently do and still find a market for them - everyone is selling more phones right now. In order to prove them wrong (show that sales will not increase), we need to find a reason or indication that mammoth's phone will NOT sell.

A - share may drop, but there may still be demand for more sales of mammoth phone. the share may be dropping just because the competitors are doing slightly better than M itself. possible answer choice, but weak.
B irrelevant - average inventory waiting declining actually means phones are getting shipped, which is a good sign.
C so people know the phone, but don't know that It's by Mammoth. What's the problem? people will still buy the phone they know, and Mammoth's increased production will sell. Irrelevant.
D irrelevant.
E tells you that Mammoth's sales have been dropping (despite the fact that everyone else is selling more, and even despite the fact that mammoth is offering the phone for less). If sales are dropping, there's a high chance the there's no demand for the increased production of mamoth's phone, which will remain to rot in their warehouse.

Answer is E.

Yes E gives is a strong reason that sales of Mammoth phones will decline.

C is tempting and may would pick C but people will still continue to buy Mammoth phones by Mammoth in an indiscriminate way. So C can be eliminated.

Well thanks guru...
Just some of my confusions

C. One thing about C i guess is either,advertisement is required or not...or current advertisement model will work or not as Mammoth will produce more Mammoth phones, and continue to advertize them.

There no evidence in the prompt which suggests that current ad policy is all working well or people are buying phone despite not knowing names.....
may be they are putting an ad but because of wrong ad policy they are advertising only brands not telephone...and nobody is buying their phone.(currently waste of ads...)
People can say i inferred a lot but i think even if we go by logic(from guru) above we will have to infer.


E. I know CR is not always about what happens in real world but i myself have seen lots of examples in my life when their sales decline...they reduce the price still their sales doesnt improve but when they come up with new advertisments or bulk production things their sales improved.....
so if we stand in reality i think it would be too harsh to say this would be cause.


Just my line of reasoning and confusion.

thanks

I would like to correct you on something that I believe is very important to realize.

CR arguments are not always that must also happen in real world. So you should not bring your real world inferences to GMAT. The GMAT world and the REAL world are entirely different

frank1 wrote:Well thanks guru...
Just some of my confusions

C. One thing about C i guess is either,advertisement is required or that ...or current advertisement model will work or not.
as Mammoth will produce more Mammoth phones, and continue to advertize them.

There no evidence in the prompt which suggests the current ad policy is all working well or people are buying phone despite not knowing names..... may be they put an ad but because of wrong ad policy they advertise plans they advertise brand not telephone...and nobody is buying their phone.
People can say i inferred a lot but i think even if we go by logic(from guru) above we will have to infer.


E. I know CR is always about what happens in real world but i myself have seen lots of examples in my life when their sales decline...they reduce the price still their sales doesnt improve but when they come up with new advertisment or bulk production things their sales improved.....
so if we stand in reality i think it would be too harsh to say this would be cause.


Just my line of reasoning and confusion.

thanks

well its .. E