BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Brand X watches

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Legendary Member
Posts: 641
Joined: Tue Feb 14, 2012 3:52 pm
Thanked: 11 times
Followed by:8 members

Brand X watches

by gmattesttaker2 » Fri Jan 31, 2014 7:00 pm
Hello,

Can you please assist with this:

Which of the following best completes the passage below?


Brand X, which currently markets luxury watches via billboards and advertisements in popular magazines, is considering saving money by advertising its newest line of luxury watches only in niche publications read by the wealthy. A recent study shows that most purchasers of Brand X's luxury watches have only recently become wealthy, and purchase the watches because Brand X is highly coveted by those aspiring to wealth, who learn about Brand X watches via advertising. Therefore, Brand X should not implement its new advertising strategy because _________________.



A) most purchasers of Brand X's luxury watches do not read magazines regularly


B) newly rich consumers will not buy the watches if the watches are not advertised to people who are not yet wealthy who will then hold the watches in high regard


C) the money saved by implementing the strategy will be outweighed by the reduction in revenue from the less expensive line of watches


D) consumers who have only recently become wealthy purchase luxury watches in order to impress those who have been wealthy for some time


E) consumers who are newly wealthy prefer to purchase products that are purchased regularly by the non-wealthy


OA: B


I was stuck between B and D


Can you please assist?


Thanks,
Sri
Top
Source: — Critical Reasoning |
User avatar
GMAT Instructor
Posts: 1248
Joined: Thu Mar 29, 2012 2:57 pm
Location: Everywhere
Thanked: 503 times
Followed by:192 members
GMAT Score:780

by Bill@VeritasPrep » Fri Jan 31, 2014 8:23 pm
We're looking for a reason that the strategy (advertise only in niche publications) will not be successful. Brand X believes that most of its customers are newly rich and buy Brand X because they saw advertising for the brand as they were aspiring to wealth.

Choice B works by telling us that the newly rich buyers will not buy Brand X if they don't see the advertising before they become rich. If that's true, then advertising to these consumers after they become rich will not help sell watches.

Choice D has no bearing on whether the proposal will succeed or fail. It's possible that the newly wealthy consumers will see Brand X in the niche publications they just subscribed to and purchase the watches. If this is true, then the advertising strategy could still succeed.
Join Veritas Prep's 2010 Instructor of the Year, Matt Douglas for GMATT Mondays

Visit the Veritas Prep Blog

Try the FREE Veritas Prep Practice Test
Top

GMAT/MBA Expert

User avatar
Elite Legendary Member
Posts: 10392
Joined: Sun Jun 23, 2013 6:38 pm
Location: Palo Alto, CA
Thanked: 2867 times
Followed by:511 members
GMAT Score:800

by [email protected] » Sat Feb 01, 2014 3:38 pm
Hi Sri,

This CR prompt is a "fill in the blank" inference question; the correct answer will match the Logic/Facts presented in the paragraph and logically complete the last sentence.

The Facts:
-Brand X markets luxury watches via billboards and magazines
-Brand X is considering only advertising in magazines read by the wealthy (as a way to save money)
-A recent study shows that MOST purchasers of Brand X's luxury watches are "recently wealthy" and purchase watches BECAUSE Brand X is coveted by those aspiring to wealth (aka not wealthy), who learn about Brand X through ADVERTISING.
-Brand X should NOT implement the new strategy (to market only in certain magazines) BECAUSE...

The Logic:
The last sentence uses the word BECAUSE, so we need a reason why Brand X should NOT advertise in just those magazines. The "recently" wealthy people who make up MOST of Brand X watch purchasers probably don't read the magazines that Brand X is planning to advertise in, so we should focus on THAT point. When those people were not wealthy, they learned about Brand X watches from billboards and became interested in the watches. For Brand X to continue selling to its largest customer pool, the company should probably continue to market to where those future customers are looking: billboards.

Answer B reiterates the facts to show why the new advertising plan wouldn't work. Answer D mentions something that was not addressed in the prompt.

GMAT assassins aren't born, they're made,
Rich
Contact Rich at [email protected]
Image
Top

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 2095
Joined: Tue Dec 04, 2012 3:22 pm
Thanked: 1443 times
Followed by:247 members

by ceilidh.erickson » Mon Feb 03, 2014 9:13 am
As a very general rule, CR arguments do not care about the feelings or intentions of their subjects. We're told that these watches are bought by the newly wealthy. Do we care WHY the newly wealthy want to buy them? No, we just care about why the brand should not implement its strategy.

Answer D talks about the motives of the newly wealthy in buying watches. This won't have any bearing on whether the advertising strategy will work.
Ceilidh Erickson
EdM in Mind, Brain, and Education
Harvard Graduate School of Education
Top
User avatar
Master | Next Rank: 500 Posts
Posts: 359
Joined: Wed Mar 11, 2009 4:37 am
Location: Kolkata, India
Thanked: 50 times
Followed by:2 members

by Abhishek009 » Mon Feb 03, 2014 9:34 am
gmattesttaker2 wrote:Brand X, which currently markets luxury watches via billboards and advertisements in popular magazines, is considering saving money by advertising its newest line of luxury watches only in niche publications read by the wealthy. A recent study shows that most purchasers of Brand X's luxury watches have only recently become wealthy, and purchase the watches because Brand X is highly coveted by those aspiring to wealth, who learn about Brand X watches via advertising. Therefore, Brand X should not implement its new advertising strategy because.
Brand X plans to advertise its product in Niche magazines read by wealthy class to save money.

Recent study : Most wearing watch X have recently become rich , to show off their wealth.

Consider this case , I was a poor fellow for the past 9 years , after winning a lottery and my ancestral property I become a Billionaire.

I will try to show off my wealth in every possible way and purchase costly items...

In the process I will be going for those Brands which I am aware of , say , XYZ Cars , ABC Shoes , FGH designer clothes etc...

Now if I am not aware about a product. If Brand X is advertised in magazines read only by wealthy class those who aren't wealthy won't be able to know about the Brand , further it is stated here that most Brand X users have recently become rich.

So the scheme won't be successful coz recently turned wealthy wont be having information of the product.

A) most purchasers of Brand X's luxury watches do not read magazines regularly

Irrelevant.

B) newly rich consumers will not buy the watches if the watches are not advertised to people who are not yet wealthy who will then hold the watches in high regard

Everything looks perfect except the underlined part, it goes further , still will hold it..


C) the money saved by implementing the strategy will be outweighed by the reduction in revenue from the less expensive line of watches

Not relevant.

D) consumers who have only recently become wealthy purchase luxury watches in order to impress those who have been wealthy for some time

True , but how is it relevant to the effectiveness of the strategy planned by Company producing Brand X ?

E) consumers who are newly wealthy prefer to purchase products that are purchased regularly by the non-wealthy

Not relevant , newly turned wealthy will try to imitate the lifestyle of the wealthier class , hence they would be more interested in purchasing brands preferred by the wealthier class.


Hence IMO (B) is better than the other options and is the answer..
Abhishek
Top
Post new topic Post Reply
• Page 1 of 1