wakau Posted July 11, 2005 Share Posted July 11, 2005 Surveys show that every year only 10 percent of cigarette smokers switch brands. Yet the manufacturers have been spending an amount equal to 10 percent of their gross receipts on cigarette promotion in magazines. It follows from these figures that inducing cigarette smokers to switch brands did not pay, and that cigarette companies would have been no worse off economically if they had dropped their advertising. 19. Of the following, the best criticism of the conclusion that inducing cigarette smokers to switch brands did not pay is that the conclusion is based on (A) computing advertising costs as a percentage of gross receipts, not of overall costs (B) past patterns of smoking and may not carry over to the future © the assumption that each smoker is loyal to a single brand of cigarettes at any one time (D) the assumption that each manufacturer produces only one brand of cigarettes(E) figures for the cigarette industry as a whole and may not hold for a particular company My ans is C. What do you say ? Quote Link to comment Share on other sites More sharing options...
mbapro Posted July 11, 2005 Share Posted July 11, 2005 I think Answer should be C.. Though D gives a close shave Quote Link to comment Share on other sites More sharing options...
wakau Posted July 12, 2005 Author Share Posted July 12, 2005 BUt the OA is E. Can someone explain the OA please !! Quote Link to comment Share on other sites More sharing options...
kautilya_bharat Posted July 12, 2005 Share Posted July 12, 2005 E it is. some company might have spent X percent of their reciept and got Y percent increase in revenue (or Y % people switching to its brand). where Y > X Overall industry figure can not tell the impact of advertisement. Quote Link to comment Share on other sites More sharing options...
muddledthots Posted July 12, 2005 Share Posted July 12, 2005 E: perhaps because surveys are averaged out... and u cant assume that all companies have had the same result... some might have benefited (been in that 10% ) while others may not have Quote Link to comment Share on other sites More sharing options...
animesh Posted October 19, 2006 Share Posted October 19, 2006 How is E the correct answer? I went for C. My reasoning is that since the smoker is not loyal to one particular brand thus the advertising don't seem to be having the desired effect. Quote Link to comment Share on other sites More sharing options...
r4rohini Posted November 5, 2006 Share Posted November 5, 2006 I dont get E as the ans.. My ans was D.. Can someone explain why is it E? Quote Link to comment Share on other sites More sharing options...
bhagyad Posted November 5, 2006 Share Posted November 5, 2006 Itz got to be E Only 10% shows that the the amount is very less. And this is possible only when the the toal no. of smokers in the industry is taken into calculation. C can't be proved. Quote Link to comment Share on other sites More sharing options...
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