GMAT Verbal Reasoning Practice Test 4

Question : 76 of 100

Marks: +1, -0

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?

It is possible to increase both the quality and the price of a product without changing its competitive position.
For certain segments of the population of consumers, higher-priced brands of some product lines are preferred to the lower-priced brands.
Competing products often try to appeal to different segments of the population of consumers.
The competitive position of a product can be affected by such factors as advertising and brand loyalty.
Consumers’ perceptions of the quality of a product are based on the actual quality of the product.

Validate

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