Verbal questions from any Manhattan Prep GMAT Computer Adaptive Test. Topic subject should be the first few words of your question.
Touloumis
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CR - Strengthen

by Touloumis Sun Mar 01, 2015 12:41 pm

Because of rising costs, United Shipping Company raised its rates by ten percent last year. Many of its customers balked at the increase, however, and turned to a rival company whose rates were lower. In response, United Shipping Company began offering a package of services for a single rate that, though high, is still lower than the combined rates of the individual services. Officers of the company claim that this move will recoup the company's lost profits.

Which of the following, if true, provides the best basis for the officers' claim?

A) United Shipping will aggressively advertise the new package of services.

B) United Shipping's rival does not offer some of the services included in the package.


C) Marketing studies have shown that many of United Shipping's former customers would prefer a combined rate for their various shipping services.


D) United Shipping does not already offer all the services separately.

E) No other shipping company offers the same package of services as United Shipping.

For the above problem, I understand how C is correct, but why isn't B also correct? If the competitor doesn't offer the new services, wouldn't that also imply that customers would come back to the company and thus increase profits? I was stuck between the two and guessed wrong.
RonPurewal
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Re: CR - Strengthen

by RonPurewal Wed Mar 11, 2015 4:20 am

nope.
any customer who wants/needs those services ... wouldn't defect from United to the other company in the first place.

if someone is willing to switch, then a fortiori they must not really care about the services they'd lose by switching.