Situation: SuperComp company intended to increase its sales of personal computers. For this reason, it enlisted several computer dealers in shopping centres and launched an advertisement campaign that has already increased brand awareness among people. Some analysts claim that this strategy won't work even though dealers enjoyed increased sales last month.
Question Stem: Which of the following, if true, best supports the claim that the analysts' doubt is well founded?
We have to find the statement that'll support analysts' claim.
(A) In market surveys, few respondents who had been exposed to SuperComp's advertising campaign said they thought there was no point in owning a home computer.
It doesn't cater to support the claim that sales of computers sold by SuperComp won't increase. Hence, Incorrect.
(B) People who own a home computer often buy a second such computer, but only rarely do people buy a third computer. Irrelevant to the argument. People buying 2nd or 3rd computer won't affect the analysts' claim. Hence, Incorrect.
(C) SuperComp's dealers also sell other brands of computers that are very similar to SuperComp's but less expensive and that afford the dealers a significantly higher markup. Correct since sales of other brands increased and not SuperComp's. Since, people were already aware of the SuperComp brand. Further campaign won't do much better.
(D) The dealers who were chosen to sell SuperComp's computers were selected in part because their stores are located in shopping centers that attract relatively wealthy shoppers. Irrelevant to the argument. Whether people are wealthy or poor doesn't hurt the argument. Hence, Incorrect
(E) Computer-industry analysts believed before the SuperComp campaign began that most consumers who already owned home computers were not yet ready to replace them. If people weren't ready to replace them, what's the surety that they'll replace now and that too of SuperComp brand. hence, incorrect
Correct Answer is C