cigarette promotion

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cigarette promotion

by Uri » Thu May 07, 2009 3:41 am
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.
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 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


Source: some earlier discussion in this forum.
OA: [spoiler](E)[/spoiler]
Please justify your answer.

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Re: cigarette promotion

by Vemuri » Thu May 07, 2009 4:23 am
Firstly, All the Best for your GMAT exam. I hope you do well.

Conclusion: 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.

Premise: 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.

Which of the criticisms can best challenge the conclusion?

A. Does not do much.
B. While true, is not a criticism that challenges the conclusion convincingly. Its too generic.
C. Loyal to only a single brand at any one time. Too specific.
D. The assumption that each manufacturer produces only one brand does not help criticize the conclusion because for them its worth spending the money & attract the 10% cigaretter smokers who switch brands.
E. This is the only possible option that really challenges the conclusion convincingly. What if the figures are generic to the industry as a whole & not to a specific company?

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by Uri » Thu May 07, 2009 10:43 pm
thanks Vemuri for the wishes and the answer! feeling a bit nervous now-a-days and perhaps missing some silly points :?

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by khanshainur » Sun May 15, 2016 10:50 pm
I think E is the right answer here