This question is from McGraw-Hill's GMAT 2013 Edition:
A company that produces a super-premium brand of vodka has been able to substantially increase its sales over the last three years while simultaneously increasing its price per bottle. The sales growth has coincided with an aggressive marketing campaign that associates the vodka with social prestige. The marketing campaign so far has primarily placed its ads in publications that target affluent individuals and business travelers. A brand manager has suggest that the best way to increase sales of the product further is to advertise in nationally distributed newspapers that target a general audience.
Which of the following, if true, provides the strongest reason for the company NOT to adopt the brand manager's suggestion?
A) Although more people will see an ad placed in a nationally distributed newspaper than would see the ad in a magazine targeted at business travelers, the readers of the newspaper are, on average, less likely to pay the high price of the super-premium product.
B) Many of the brand's most loyal current customers are willing to pay a high price for the product because of the product's aura of exclusivity.
C) Although an advertisement in a nationally distributed newspaper is less expensive per customer reached than is the same ad placed in a magazine targeted at affluent individuals, the overall cost of the ad buy is much more expensive.
D) Although the product is sold at a much higher price than are vodkas that are not considered "super-premium," its cost of production is only slightly higher than the industry average.
E) Readers of the nationally syndicated newspaper who are opposed to the drinking of hard alcohol may cancel their subscriptions to the newspaper if it runs advertisements for the vodka brand.
I was able to eliminate choices C, D, E and, so, was left with A & B. I understand why B is the right answer but am still confused about how to eliminate choice A...
Please help. Thank you!
A company that produces a super-premium brand of vodka has been able to substantially increase its sales over the last three years while simultaneously increasing its price per bottle. The sales growth has coincided with an aggressive marketing campaign that associates the vodka with social prestige. The marketing campaign so far has primarily placed its ads in publications that target affluent individuals and business travelers. A brand manager has suggest that the best way to increase sales of the product further is to advertise in nationally distributed newspapers that target a general audience.
Which of the following, if true, provides the strongest reason for the company NOT to adopt the brand manager's suggestion?
A) Although more people will see an ad placed in a nationally distributed newspaper than would see the ad in a magazine targeted at business travelers, the readers of the newspaper are, on average, less likely to pay the high price of the super-premium product.
B) Many of the brand's most loyal current customers are willing to pay a high price for the product because of the product's aura of exclusivity.
C) Although an advertisement in a nationally distributed newspaper is less expensive per customer reached than is the same ad placed in a magazine targeted at affluent individuals, the overall cost of the ad buy is much more expensive.
D) Although the product is sold at a much higher price than are vodkas that are not considered "super-premium," its cost of production is only slightly higher than the industry average.
E) Readers of the nationally syndicated newspaper who are opposed to the drinking of hard alcohol may cancel their subscriptions to the newspaper if it runs advertisements for the vodka brand.
I was able to eliminate choices C, D, E and, so, was left with A & B. I understand why B is the right answer but am still confused about how to eliminate choice A...
Please help. Thank you!
