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gmatmachoman
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Surveys show that every year only 10 percent of cigarette smokers switch brands. Yet the
manufacturers have been spending an amount equal to 10 percent of their gross receipts on
cigarette promotion in magazines. It follows from these figures that inducing cigarette smokers to
switch brands did not pay, and that cigarette companies would have been no worse off
economically if they had dropped their advertising.
19. Of the following, the best criticism of the conclusion that inducing cigarette smokers to switch
brands did not pay is that the conclusion is based on
(A) computing advertising costs as a percentage of gross receipts, not of overall costs
(B) past patterns of smoking and may not carry over to the future
(C) the assumption that each smoker is loyal to a single brand of cigarettes at any one time
(D) the assumption that each manufacturer produces only one brand of cigarettes
(E) figures for the cigarette industry as a whole and may not hold for a particular company
20. Which of the following, if true, most serinously weakens the conclusion that cigarette
companies could have dropped advertising without suffering economically?
(A) Cigarette advertisements provide a major proportion of total advertising revenue for
numerous magazines.
(B) Cigarette promotion serves to attract first-time smokers to replace those people who have
stopped smoking.
(C) There exists no research conclusively demonstrating that increases in cigarette advertising
are related to increases in smoking.
(D) Advertising is so firmly established as a major business activity of cigarette manufacturers
that they would be unlikely to drop it.
(E) Brand loyalty is typically not very strong among those who smoke inexpensive cigarettes
OA after explanation!!
manufacturers have been spending an amount equal to 10 percent of their gross receipts on
cigarette promotion in magazines. It follows from these figures that inducing cigarette smokers to
switch brands did not pay, and that cigarette companies would have been no worse off
economically if they had dropped their advertising.
19. Of the following, the best criticism of the conclusion that inducing cigarette smokers to switch
brands did not pay is that the conclusion is based on
(A) computing advertising costs as a percentage of gross receipts, not of overall costs
(B) past patterns of smoking and may not carry over to the future
(C) the assumption that each smoker is loyal to a single brand of cigarettes at any one time
(D) the assumption that each manufacturer produces only one brand of cigarettes
(E) figures for the cigarette industry as a whole and may not hold for a particular company
20. Which of the following, if true, most serinously weakens the conclusion that cigarette
companies could have dropped advertising without suffering economically?
(A) Cigarette advertisements provide a major proportion of total advertising revenue for
numerous magazines.
(B) Cigarette promotion serves to attract first-time smokers to replace those people who have
stopped smoking.
(C) There exists no research conclusively demonstrating that increases in cigarette advertising
are related to increases in smoking.
(D) Advertising is so firmly established as a major business activity of cigarette manufacturers
that they would be unlikely to drop it.
(E) Brand loyalty is typically not very strong among those who smoke inexpensive cigarettes
OA after explanation!!
)
