A recent survey has shown that every five years only 15 percent of people who are fond of wearing jeans switch brands because once a person is comfortable wearing jeans of a particular brand, he prefers not to experiment with other brands. Yet companies have been spending almost 15 percent of their revenues on advertising. It follows from these figures that inducing people to switch brands doesn't produce the desired results, and that companies would have been no worse off economically if they had stopped their advertising.
The best criticism of the conclusion is that it is based on:
(A) Calculating advertising costs as a percentage of revenues, not of the overall costs of manufacturing.
(B) Past behaviour of a consumer may not accurately predict the future needs.
(C) The assumption that a consumer is loyal to a single brand at any one time.
(D) The assumption that each company makes only one brand of jeans.
(E) The figures for the textile industry as a whole may not hold for a particular company.![]()
The best criticism of the conclusion is that it is based on:
(A) Calculating advertising costs as a percentage of revenues, not of the overall costs of manufacturing.
(B) Past behaviour of a consumer may not accurately predict the future needs.
(C) The assumption that a consumer is loyal to a single brand at any one time.
(D) The assumption that each company makes only one brand of jeans.
(E) The figures for the textile industry as a whole may not hold for a particular company.