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Quality

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by crackgmat007 » Fri May 22, 2009 12:36 pm
The value of a product is determined by the ratio of its quality to its price. The higher the value of a product, the better will be its competitive position. Therefore, either increasing the quality or lowering the price of a given product will increase the likelihood that consumer will select that product rather than a competing one.
Which of the following, if true, would most strengthen the conclusion drawn above?
(A) It is possible to increase both the quality and the price of a product without changing its competitive position.
(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
(C) Competing products often try to appeal to different segments of the population of consumers.
(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.
(E) Consumers’ perceptions of the quality of a product are based on the actual quality of the product.

OA - E Pls explain
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by myohmy » Fri May 22, 2009 4:29 pm
The conclusion here is that either increasing the quality or lowering the price of a product will improve its competitive position.

Using POE here:
(A) It is possible to increase both the quality and the price of a product without changing its competitive position.

No, this actually weakens the conclusion since the conclusion claims that if you do one or the other, the competitive position will be improved. Eliminate.

(B) For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.

This is pretty irrelevant to the conclusion, since it only discusses certain segments of the population rather than customers as awhole, but even if it weren't, it would weaken the conclusion. Eliminate.

(C) Competing products often try to appeal to different segments of the population of consumers.

Also irrelevant and calls for info the statement doesn't give you. Eliminate.

(D) The competitive position of a product can be affected by such factors as advertising and brand loyalty.

This would actually weaken the conclusion, since the conclusion claims that changing one or the other will improve competitive position. Throwing other factors into the mix casts doubt on that conclusion. Eliminate.

(E) Consumers’ perceptions of the quality of a product are based on the actual quality of the product.

Yes. That way we know that improving quality will also improve consumer perception of quality, which will raise competitive position. If the consumer doesn't notice that a product's quality has improved, how could it affect competitive position?

IMO, E is the correct answer.
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by tanviet » Sat May 23, 2009 6:20 am
C is correct. if competitive position make customers choose products, then the conclusion is sthenthened.

C make us more beliveving the arguement. C "tips the scale to believing the arguement" . This words is from Kaplan books.
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by mehravikas » Sun May 24, 2009 8:24 pm
E cannot be the answer because if the consumers perception is based on actual quality then increasing the price won't affect the competitive advantage of the product. But the argument says by increasing the quality or decreasing the price helps to increase the value of the product.

IMO C
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by Musicolo » Mon May 25, 2009 7:17 am
I think C is irrelevant here. The statement is about the competitive position based on lower prices or higher quality of the product. Product's appeal to different market segmets is irrelevant.
A weakens the argument
B out of scope
C irrelevant
D potentially weakens the argument
E strenghtens it by saying that the actual quality of the product is vital in consumers' perepction of the product. Hence, increasing the actual quality of the product will increase loyalty to the product and its competitive position in the market.
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by rahulg83 » Mon May 25, 2009 7:22 am
IMO E is the right answer

C says
Competing products often try to appeal to different segments of the population of consumers
but how products appeal to different consumers is irrelevant to the scope of the passage.

While E says
Consumers’ perceptions of the quality of a product are based on the actual quality of the product
Right..if actual quality is high, and hence it's value, it will certainly improve the product's competitive position in the market
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by james33 » Sun May 15, 2016 7:47 pm
I will Go with option C in this case.
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