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Hotel Review

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by GmatKiss » Sun May 27, 2012 2:56 am
A negative review of a popular restaurant claimed that the wait staff was rude and the food was overpriced. This review caused sales to drop precipitously which, in turn, forced the original owners to sell the business. The new owners revised the menu and dismissed most of the wait staff. After three months, however, sales had improved by less than 1%.

Which of the following, if true, forms the best basis for at least a partial explanation of why sales at the restaurant have not improved?

The new owners could not determine who were the rudest members of the wait staff.

New menu items offered by the new owners are now more affordable.

The new owners neglected to advertise the fact that the restaurant is now under new management.

The new owners began managing the restaurant during the summer, when sales are unusually high.

Another restaurant with similarly-priced menu items opened across the street.
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by ankita1709 » Sun May 27, 2012 4:19 am
I think the answer is A
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by alex.gellatly » Sun May 27, 2012 6:23 pm
I think the answer should be c because this attacks the argument. The restaurant had a bad review, so people stopped going. Although they fired the staff and changed the menu if people didn't know this then they would still have a bad impression about the restaurant.
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by Spidy001 » Sun May 27, 2012 6:43 pm
My answer is

E

A - addresses only one factor that caused sales to drop ( over priced food and rude staff are two factors)
B - Opposite . if current prices are affordable then sales should have increased instead of dropping.
C - Just by advertising that the company is under new management , sales may not improve. customers would be more interested in improvement in staff behavior and affordable food prices.
D - Opposite. during a high sale season , sales should have been high.

Whats the OA?
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by ice_rush » Sun May 27, 2012 7:41 pm
(C) seems fine. it gives us that missing link as to why the sales did not improve.

(E) is a good contender, but it does not mention anything about the staff. For all we know, the staff could've been rude.
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by eagleeye » Sun May 27, 2012 8:32 pm
The correct answer should be A. Let me explain:

A.The new owners could not determine who were the rudest members of the wait staff.
If this was true, they might have fired the relatively nicer people and kept the rudest staff.
A contender.

B. New menu items offered by the new owners are now more affordable.
This is opposite of what we are trying to explain. NO.

C. The new owners neglected to advertise the fact that the restaurant is now under new management.
The sales dropped not because of the management but due to the rude staff and overpriced food perception. Even if people know management is new, doesn't change the bad food/rude waiters perception. NO.

D. The new owners began managing the restaurant during the summer, when sales are unusually high.
This could have been a contender, except we don't know whether its still summer or not. NO.

E. Another restaurant with similarly-priced menu items opened across the street.
The prices across the street are similar. The menu items may not be. In fact, in some cases, this might help the sales, as people from the other restaurant might try this one. Who knows. NO.

Only one contender left which explains why sales might not have improved. Therefore A must be the answer.

GmatKiss, please post the OA.
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by vk_vinayak » Mon May 28, 2012 2:41 am
IMO C.

Please post the source and the OA.
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I will (Learn. Recognize. Apply)
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by Gaurav 2013-fall » Mon May 28, 2012 9:09 am
IMO A
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by nitingoel » Mon May 28, 2012 9:17 am
IMO [spoiler](A)[/spoiler]
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by alex.gellatly » Mon May 28, 2012 5:54 pm
GMATKISS: We've been waiting. What's the OA and the source? Thanks
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by GMAT Kolaveri » Mon May 28, 2012 7:51 pm
the argument clearly states that "This review caused sales to drop"

If the public opinion is not changed how will the sales improve? Hence C is the OA according to me.
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by alex.gellatly » Thu May 31, 2012 5:35 am
alex.gellatly wrote:GMATKISS: We've been waiting. What's the OA and the source? Thanks
KISS: We're still waiting....
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by dhonu121 » Fri Jun 01, 2012 4:23 am
OA:A
Very nicely explained by eagleeye.
Esp. the explanations to C and E.
If you've liked my post, let me know by pressing the thanks button.
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by prernagupta12 » Fri Jun 01, 2012 4:56 am
It was the negative review that dropped sales. Unless the review is changed - through advertising, the sales will not increase.
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by Ankur87 » Thu Sep 13, 2012 7:57 pm
GmatKiss wrote:A negative review of a popular restaurant claimed that the wait staff was rude and the food was overpriced. This review caused sales to drop precipitously which, in turn, forced the original owners to sell the business. The new owners revised the menu and dismissed most of the wait staff. After three months, however, sales had improved by less than 1%.

Which of the following, if true, forms the best basis for at least a partial explanation of why sales at the restaurant have not improved?

The new owners could not determine who were the rudest members of the wait staff.

New menu items offered by the new owners are now more affordable.

The new owners neglected to advertise the fact that the restaurant is now under new management.

The new owners began managing the restaurant during the summer, when sales are unusually high.

Another restaurant with similarly-priced menu items opened across the street.
OA-C
it was the negative perception created by the review that led to decline in sales as less customers came.The new owners neglected to advertise the fact that the restaurant is now under new management, hence did little to change the already established negative impression thus the sales failed to rise appreciably.

A explains only one factor that the review raised.
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