buy prestige when they buy a premium product

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 234
Joined: Tue May 31, 2016 1:40 am
Thanked: 3 times
Which of the following best completes the passage below?

People buy prestige when they buy a premium product. They want to be associated with something special. Mass-marketing techniques and price reduction strategies should not be used because ------------.

A) affluent purchasers currently represent a shrinking portion of the population of all purchasers

B) continued sales depend directly on the maintenance of an aura of exclusivity

C) purchasers of premium products are concerned with the quality as well as with the price of the products

D) expansion of the market niche to include a broader spectrum of consumers will increase profits

E) manufacturing a premium brand in not necessarily more costly than manufacturing a standard brand of the same product

OAB


Please explain.

Many thanks in advance.

Kavin

User avatar
Legendary Member
Posts: 2131
Joined: Mon Feb 03, 2014 9:26 am
Location: https://martymurraycoaching.com/
Thanked: 955 times
Followed by:140 members
GMAT Score:800

by MartyMurray » Sat Sep 24, 2016 10:44 pm
When doing a GMAT fill in the blank critical reasoning question, you have to go beyond finding an answer choice that fits the sentence that has the blank to finding one that works with the entire prompt. So first look at the prompt.

The prompt says "People buy prestige when they buy a premium product. They want to be associated with something special."

Those statements set up the last sentence, which talks about mass marketing techniques and price reduction strategies. To complete the sentence you need something that not only fits "mass marketing techniques and price reduction strategies should not be used, because" but also has something to do with people buying prestige and wanting to be associated with something special.

(A) This fits the last sentence but is not connected to people buying prestige and wanting to be associated with something special.

(B) This works with last sentence and with the entire prompt. Mass marketing techniques and price reduction strategies do not serve to maintain an aura of exclusivity. Therefore they should not be used in connection with premium products that people buy because they want to associated with something special. So using this answer choice to fill the blank creates a cohesive paragraph that makes sense.

(C) This fits the last sentence, but does not have any connection to the prestige and being associated with something special ideas that are discussed in other sentences in the prompt.

(D) The reasonable understanding of marketing is that it is meant to increase profits. So not engaging in it because it will increase profits does not make sense, and so this answer choice does not make sense with the last sentence.

(E) The prompt is about marketing, rather than manufacturing. So, this answer choice does not fit the prompt at all.

The correct answer is B.
Marty Murray
Perfect Scoring Tutor With Over a Decade of Experience
MartyMurrayCoaching.com
Contact me at [email protected] for a free consultation.

User avatar
Senior | Next Rank: 100 Posts
Posts: 51
Joined: Fri Sep 09, 2016 11:59 pm
Thanked: 20 times

by MBA Challengers » Thu Oct 06, 2016 1:57 am
Needgmat wrote:Which of the following best completes the passage below?

People buy prestige when they buy a premium product. They want to be associated with something special. Mass-marketing techniques and price reduction strategies should not be used because ------------.

A) affluent purchasers currently represent a shrinking portion of the population of all purchasers

B) continued sales depend directly on the maintenance of an aura of exclusivity

C) purchasers of premium products are concerned with the quality as well as with the price of the products

D) expansion of the market niche to include a broader spectrum of consumers will increase profits

E) manufacturing a premium brand in not necessarily more costly than manufacturing a standard brand of the same product

OAB


Please explain.

Many thanks in advance.

Kavin
Hi Kavin,

The main idea that the passage that the passage deals with is the psychology associated with buying premium products and how it clashes with mass production or price reductions. We will need to look at the options individually to decide on which option fits the bill:

A. the stimulus does not mention the manufacturers having a problem with lesser customers or any thing in that direction. INCORRECT
B. "Aura of exclusivity" - this phrase goes directly with the first line of people buying prestige and negates the idea of mass-marketing as exclusivity and mass marketing are complete opposites. So, this option completes the sentence properly by showcasing what the customer wants or thinks about and how mass-marketing and price reduction go against it. CORRECT
C. The stimulus does not talk about the quality going down with mass-marketing techniques. INCORRECT
D. Increasing profits is a desirable outcome. So, the idea of not doing mass-marketing or price reduction because they will result in profit is not logical. INCORRECT
E. This option also does not make sense as mass-marketing and the same cost for premium brand manufacturing do not really seem to fit in well together. INCORRECT

So, the answer is B.
Log on to www.mbachallengers.com for
Easy strategic GMAT prep
For any queries mail us at [email protected]
Follow MBA Challengers on Facebook