Solutions

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Question

A manufacturer of workstations for computer-aided design seeks to increase sales to its most important corporate customers. Its strategy is to publish very low list prices for workstations in order to generate interest among the buyers for those corporations.

Which of the following, if characteristic of the marketplace, would tend to cause the manufacture’s strategy to fail?


 

Option A:

The proposed list prices would seem low to a typical buyer for the manufacturer’s most important corporate customers.

Option B:

The capabilities of workstations suitable for given jobs are not significantly different among various manufactures.

Option C:

The manufacturer’s most important corporate customers employ as buyers persons who are very knowledgeable about prices for workstations for customer-aided design.

Option D:

customers differ significantly in the percentage of resources they can devote to computer workstations.

Option E:

Buyers for corporations that purchase workstations for computer-aided design receive bonuses for negotiating large discounts from the list price.

Difficulty Level

Easy

Solution

Option E is the correct answer.


Option Analysis

Question type: Weaken the argument.  

Summary of the argument: The strategy is to reduce the price so that the same will attract more consumers of the same type of organizations.  

A) The aim of the plan is to make the price seem low. Hence this option strengthens the argument.  

B) We are not worried about the capabilities of the workstations.  

C) The knowledge of the people is out of scope.  

D) Again, the percentage of resources is not what the argument is concerned about.  

E) Correct Answer