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Value of product

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by FINALCOUNTDOWN » Sat Feb 07, 2009 11:10 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.
E
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Source: — Critical Reasoning |

by bmlaud » Sat Feb 07, 2009 11:36 pm
E, the conclusion will hold true only when the customers perception of quality matches that of the actual quality of a product.
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by srn » Sun Feb 08, 2009 12:36 am
IMO its E
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by Brad.C » Fri May 13, 2016 2:05 pm
I'm going with E
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by Brad.C » Fri May 13, 2016 2:05 pm
I'm going with E
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