Resolve the paradox question

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Resolve the paradox question

by rayapudisandeep » Wed Nov 24, 2010 6:49 am
177. Products sold under a brand name used to command premium prices because, in general, they were
superior to nonbrand rival products. Technical expertise in product development has become so widespread,
however, that special quality advantages are very hard to obtain these days and even harder to maintain. As a
consequence, brand-name products generally neither offer higher quality nor sell at higher prices. Paradoxically,
brand names are a bigger marketing advantage than ever.


(A) Brand names are taken by consumers as a guarantee of getting a product as good as the best rival
products.
(B) Consumers recognize that the quality of products sold under invariant brand names can drift over time.
(C) In many acquisitions of one corporation by another, the acquiring corporation is interested more in acquiring
the right to use certain brand names than in acquiring existing production facilities.
(D) In the days when special quality advantages were easier to obtain than they are now, it was also easier to
get new brand names established.
(E) The advertising of a company's brand-name products is at times transferred to a new advertising agency,
especially when sales are declining.


Can anyone explain why OA is A?
Source: — Critical Reasoning |

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by shovan85 » Wed Nov 24, 2010 7:19 am
rayapudisandeep wrote:177. Products sold under a brand name used to command premium prices because, in general, they were
superior to nonbrand rival products. Technical expertise in product development has become so widespread,
however, that special quality advantages are very hard to obtain these days and even harder to maintain. As a
consequence, brand-name products generally neither offer higher quality nor sell at higher prices. Paradoxically,
brand names are a bigger marketing advantage than ever.


(A) Brand names are taken by consumers as a guarantee of getting a product as good as the best rival
products.
(B) Consumers recognize that the quality of products sold under invariant brand names can drift over time.
(C) In many acquisitions of one corporation by another, the acquiring corporation is interested more in acquiring
the right to use certain brand names than in acquiring existing production facilities.
(D) In the days when special quality advantages were easier to obtain than they are now, it was also easier to
get new brand names established.
(E) The advertising of a company's brand-name products is at times transferred to a new advertising agency,
especially when sales are declining.


Can anyone explain why OA is A?
Clearly A

The paradox to be resolved here is though there is no technical advances between Branded and Non Branded products, Branded product takes the market.

How will this happen?

This will happen only when the buyers will not think of a product buying from a non branded company when the same product is available with a Branded product provided price is same. Premises say Price is same and quality is same (brand-name products generally neither offer higher quality nor sell at higher prices).

This is said only in option A.
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by Tani » Sat Nov 27, 2010 9:14 am
WHat is the question stem?
Tani Wolff