Advertisement Remove all ads

Products Sold Under a Brand Name Used to Command Premium Prices Because, in General, They Were Superior to Non-brand Rival Products. Which of the Following, If True, Most Helps to Resolve the Paradox - Logical Reasoning

MCQ

Read the following short passages and answer the questions that follow each passage.
Products sold under a brand name used to command premium prices because, in general, they were superior to non-brand rival products. Technical expertise in product development has become so widespread, however, that special quality advantages are very hard to obtain these days and even harder to maintain. As a consequence, brand-name products generally neither offer higher quality nor sell at higher prices. Paradoxically, brand names are a bigger marketing advantage than ever.
Which of the following, if true, most helps to resolve the paradox outlined above?

Options

  • Brand names are taken by consumers as a guarantee of getting a product as good as the best rival product.

  • Consumers recognised that the quality of products sold under invariant brand names can drift over time

  • In the acquisition of one corporation by another, the acquiring corporation is interested more in acquiring the right to use certain brand names than in acquiring existing production facilities.

  • In the earlier days when special quality advantages were easier to obtain than are now, it was also easier to get new brand names established.

Advertisement Remove all ads

Solution

Brand names are taken by consumers as a guarantee of getting a product as good as the best rival product.

Explanation:

According to the passage, these days brand-name products neither offer higher quality nor sell at higher prices. Still, brand names provide a bigger marketing advantage. This is because brand names guarantee to provide products that are as good as their rival’s products. Hence, 'Brand names are taken by consumers as a guarantee of getting a product as good as the best rival product.' is the correct answer.

Concept: Statement and Assumption (Entrance Exam)
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×