manhattan cr 37 united shippings

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pradeepkaushal9518: Legendary Member; Posts: 1309; Joined: Wed Mar 17, 2010 11:41 pmFollowed by: 5 members; Thanked: 33 times

by pradeepkaushal9518 » Sat Sep 11, 2010 9:43 pm

Because of rising costs, United Shipping Company raised its rates by ten percent last year. Many of its customers balked at the increase, however, and turned to a rival company whose rates were lower. In response, United Shipping Company began offering a package of services for a single rate that, though high, is still lower than the combined rates of the individual services. Officers of the company claim that this move will recoup the company's lost profits.

Which of the following, if true, provides the best basis for the officers' claim?

United Shipping will aggressively advertise the new package of services.

United Shipping's rival does not offer some of the services included in the package.

Marketing studies have shown that many of United Shipping's former customers would prefer a combined rate for their various shipping services.

United Shipping does not already offer all the services separately.

No other shipping company offers the same package of services as United Shipping.

Last edited by pradeepkaushal9518 on Sat Sep 11, 2010 11:12 pm, edited 1 time in total.

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Source: Beat The GMAT — Critical Reasoning | Sat Sep 11, 2010 9:43 pm

paddle_sweep: Master | Next Rank: 500 Posts; Posts: 379; Joined: Wed Apr 07, 2010 12:53 am; Location: Chennai,India; Thanked: 3 times

by paddle_sweep » Sat Sep 11, 2010 10:35 pm

I will go with 'C'. Pls post OA.

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vishalj: Master | Next Rank: 500 Posts; Posts: 104; Joined: Sun Mar 18, 2007 9:03 pm; Thanked: 4 times

by vishalj » Sun Sep 12, 2010 12:15 am

Between B and E, IMO E

watchout4me: Junior | Next Rank: 30 Posts; Posts: 10; Joined: Sun Jun 20, 2010 8:33 am; Thanked: 1 times; GMAT Score:730

by watchout4me » Sun Sep 12, 2010 2:25 am

I will go with E. Because this option clearly explains why the company will regain profits despite the high rates for its packaged services.

hims: Newbie | Next Rank: 10 Posts; Posts: 4; Joined: Sat Jul 17, 2010 7:02 am

by hims » Mon Sep 13, 2010 5:15 am

I think it should be B, although E is very tempting.
The company offers few services which no other company offers. Thus, the customers have to go for the package as they have no choice. This will help them in booking profits in other services which are offered by other companies.

E can't be the answer as-
"No other shipping company offers the same package of services as United Shipping".

The statement is about the 'package of services' and not services. If a customer can get the same services which are included in the package at lower cost, no one would be interested in that offer.

Let me know if this helps or if there is any flaw in the reasoning!

Thanks!

Maciek: Master | Next Rank: 500 Posts; Posts: 164; Joined: Sun Jul 18, 2010 5:26 amFollowed by: 4 members; Thanked: 49 times; GMAT Score:710

by Maciek » Mon Sep 13, 2010 8:02 am

Hi all!

IMO C OA C

Step 1: Read the question stem and identify the type of question.
This is "strenghten" type of CR question

Step 2: Read the stimulus.

Step 3: Focus on the officers' claim and read the question stem again.

Step 4: Eliminate the answer choices that are wrong.

(A) It can be true, but it is irrelevant to the officers' claim
(B) it is irrelevant to the officers' claim that offering a package of services, for a single rate and lower than the combined rates of the individual services, will recoup the company's lost profits.
(C) It strenghtens the argument. Therefore, it can be the correct answer.
(D) It introduces additional information that is out of scope
(E) It neither strenghtens nor weakens the claim.

Step 5: Read the answer choice you've selected, and read the stem. Confirm or eliminate the answer choice.

Answer C provides the best basis for the officers' claim.

Follow the thread here:
https://www.beatthegmat.com/united-shipping-t7509.html

Read "Comprehensive CR Guide"
https://gmatclub.com/forum/cr-guide-100473.html

Hope it helps!
Best,
Maciek

"There is no greater wealth in a nation than that of being made up of learned citizens." Pope John Paul II

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scorpionz: Senior | Next Rank: 100 Posts; Posts: 98; Joined: Thu Aug 19, 2010 10:00 amFollowed by: 1 member; Thanked: 7 times; GMAT Score:760

by scorpionz » Mon Sep 13, 2010 11:06 am

IMO : C

United Shipping will aggressively advertise the new package of services. - This need not actually entice customers

United Shipping's rival does not offer some of the services included in the package. - If United Shipping's customers don't need the services, it doesn't matter if the rival firms do not offer these service.

Marketing studies have shown that many of United Shipping's former customers would prefer a combined rate for their various shipping services. - This makes sense. If many former customers had expressed a desire to have a combined rate, the new tactic can entice these customers back to United Shipping.

United Shipping does not already offer all the services separately. - It already does. The firm is only introducing a new combined rate for these services. Does not help evaluate whether it will help recoup profits..

No other shipping company offers the same package of services as United Shipping. - Irrelevant. If the package of services is such that customers do not want it anyway, this cannot be classified as an advantage that United Shipping would have over its rivals. Hence it cannot lead to more profits...

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