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Neuman’s plan to increase its market share is most called

Expert replies
by himu » Sat Sep 29, 2012 9:23 pm
Metropolis-area drycleaners have had a steady increase in business over the past year, and in order to take advantage of this and expand its market share, Neuman’s Drycleaning is planning to expand its facilities to enable it to handle a higher volume of garments. Neuman’s will maintain the same prices and weekly specials that it has employed for the past several years.

The potential success of Neuman’s plan to increase its market share is most called into question by which of the following, if true?
Choices
A
Neuman’s share of the local drycleaning market has declined over the past year, but their drycleaning facilities are always at maximum capacity.

B
The average turnaround time to get a garment drycleaned at Neuman’s is slightly longer now than it was a year ago.


C
Most customers are not aware that Mr. Neuman sold his drycleaning company to a franchise five years ago, and no longer runs the facility himself.

D
Neuman’s is one of the two most popular drycleaners in Metropolis.

E
Despite a recent increase in advertising, business has been slightly less busy at Neuman’s over the past six months than it had been previously.
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Source: — Critical Reasoning |

by ratan_2009 » Sun Sep 30, 2012 9:04 am
ans is E
can you pls tell whts OA
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by Ian Stewart » Mon Oct 01, 2012 10:04 am
The point is that increasing production (or expanding your business) won't help you increase market share unless you can increase sales. So E is the right answer; even with more advertising, the company hasn't managed to increase sales, so there's no reason to think an expanded business will have greater sales than a non-expanded one.

And I'd add that this question is essentially an exact copy of a GMATPrep question with some words changed:

https://www.beatthegmat.com/gmatprep-cr- ... t3381.html

and these two questions are also a copy of the above with some words changed:

https://www.beatthegmat.com/oven-t120809.html
https://www.beatthegmat.com/digital-camera-t59786.html

It seems, so that they can advertise having thousands of practice questions, more than one prep company has produced a ton of these inferior copies of official questions. I think this practice works against test taker interests, and I hold companies that do this in low esteem. If you study these questions, then take a GMATPrep test, you'll be familiar with the logic of the questions you're answering. Not only will this inflate your score, giving you a false impression of your current level, but it will also influence your impression of how successfully you pace yourself on the test. After all, if you know the answers already, you'll answer questions more quickly.

So in general I think these questions are great practice if your goal is to get a good score on GMATPrep, and are bad practice if your goal is to get a good score on the actual GMAT, since they diminish the value of GMATPrep, which is the most important study tool you have. Where is this question from?
For online GMAT math tutoring, or to buy my higher-level Quant books and problem sets, contact me at ianstewartgmat at gmail.com

ianstewartgmat.com
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