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  Experia Inc., a pioneer in online retailing in the cosmetics business, sells all its products only through its website. While evaluating its various marketing channels, the company discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on whether the customer came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.  
Which of the following most strongly undermines the ability of the company’s plan to increase its profits? 
  • a)
    An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user.
  • b)
    The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in the case of Google.
  • c)
    Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales.
  • d)
    Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.
  • e)
    By investing time and money on writing articles in Cosmetico, Experia can reduce its customer acquisition costs to half to what they are now.   
Correct answer is option 'B'. Can you explain this answer?
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Experia Inc., a pioneer in online retailing in the cosmetics business,...
Experia Inc., a pioneer in online retailing in the cosmetics business, sells all its products only through its website. While evaluating its various marketing channels, the company discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on whether the customer came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.  
Which of the following most strongly undermines the ability of the company’s plan to increase its profits?  
Argument Analysis
 
 
Pre-Thinking
Conclusion Clarification
There is no conclusion by the author per se. The question stem asks us to find a statement that will weaken Experia’s plan to increase profits by shifting some marketing funds from Cosmetico to Google.
Pre-Thinking Approach
Let’s see how we can make the conclusion less believable.  To do so, we will look at the logical structure, focusing on linkage 1 and the conclusion.  Thus the way to weaken the conclusion will be to weaken this linkage i.e. find a new piece of information  that weakens the plan’s ability to achieve the desired goal.
Linkage#1 – …it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine
  • Weakener – What if despite the difference in the number of visitors from the two channels, it is actually the visitors from the online magazine that form the bulk of the final customers? Surely, this linkage will not hold then and the author’s conclusion will be significantly weakened.
    • Instance 1: The visitor to customer conversion ratio is significantly lower for the visitors attracted by Google than for the visitors attracted by Cosmetico.
With this understanding in mind, let’s take a look at the option statements.
Answer Choices
A
An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user.
Incorrect - Irrelevant
First of all, this choice does not even talk about Experia visitors from either of the two channels. Secondly, the passage already states that the average purchase of a customer does not depend on the channel the customer has come through. So this information has no bearing on the plan proposed by the company.
B
The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in the case of Google.
Correct
This choice is based along the lines of our pre-thinking Instance 1 and seriously undermines the ability of the company’s plan to increase its profits.
C
Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales.
Incorrect - Irrelevant
First of all, we don’t know whether there is any similarity in the current and last situation referred to. Even if this fact is kept aside for the moment, this choice is in the opposite direction as it talks about a positive result that the company attained by shifting more of its resources to Google.
D
Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.
Incorrect - Irrelevant
There is no stated or implied link between the geographical location of visitors and the profit made by the company. Therefore, the information given in this choice is completely irrelevant to the argument at hand.
E
By investing time and money on writing articles in Cosmetico, Experia can reduce its customer acquisition costs to half to what they are now.   
Incorrect - Irrelevant
We are only told that Google attracts 2 times as many visitors as Cosmetico. This piece of information is not indicative of what the customer acquisition costs are for these two channels; for instance, the customer acquisition cost for Cosmetico could be 5 times as high as that for Google. Under such circumstances, this piece of information will not act as a weakener.  Plus, this choice talks about spending more money on the magazine.
 
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Most Upvoted Answer
Experia Inc., a pioneer in online retailing in the cosmetics business,...
Undermining the company's plan to increase profits

Higher conversion ratio for Cosmetico
- If the conversion ratio from visitors to customers is several times higher in the case of Cosmetico compared to Google, it means that even though Google attracts more visitors per dollar spent, Cosmetico is more effective at turning those visitors into actual customers. This undermines the company's plan to shift more funds to Google, as it suggests that the magazine is more efficient at generating sales despite lower visitor numbers.
Therefore, option (B) is the most strongly undermining the ability of the company's plan to increase profits, as it highlights the higher conversion ratio for Cosmetico.
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Experia Inc., a pioneer in online retailing in the cosmetics business, sells all its products only through its website. While evaluating its various marketing channels, the company discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on whether the customer came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.Which of the following most strongly undermines the ability of the company’s plan to increase its profits?a)An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user.b)The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in the case of Google.c)Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales.d)Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.e)By investing time and money on writing articles in Cosmetico, Experia can reduce its customer acquisition costs to half to what they are now. Correct answer is option 'B'. Can you explain this answer?
Question Description
Experia Inc., a pioneer in online retailing in the cosmetics business, sells all its products only through its website. While evaluating its various marketing channels, the company discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on whether the customer came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.Which of the following most strongly undermines the ability of the company’s plan to increase its profits?a)An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user.b)The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in the case of Google.c)Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales.d)Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.e)By investing time and money on writing articles in Cosmetico, Experia can reduce its customer acquisition costs to half to what they are now. Correct answer is option 'B'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Experia Inc., a pioneer in online retailing in the cosmetics business, sells all its products only through its website. While evaluating its various marketing channels, the company discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on whether the customer came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.Which of the following most strongly undermines the ability of the company’s plan to increase its profits?a)An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user.b)The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in the case of Google.c)Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales.d)Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.e)By investing time and money on writing articles in Cosmetico, Experia can reduce its customer acquisition costs to half to what they are now. Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Experia Inc., a pioneer in online retailing in the cosmetics business, sells all its products only through its website. While evaluating its various marketing channels, the company discovered that it attracts two times as many visitors for every dollar spent on Google than on Cosmetico, an online magazine. The company also found that the average purchase of a customer does not depend on whether the customer came through Google or the magazine. The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.Which of the following most strongly undermines the ability of the company’s plan to increase its profits?a)An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user.b)The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in the case of Google.c)Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales.d)Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.e)By investing time and money on writing articles in Cosmetico, Experia can reduce its customer acquisition costs to half to what they are now. Correct answer is option 'B'. Can you explain this answer?.
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The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.Which of the following most strongly undermines the ability of the company’s plan to increase its profits?a)An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user.b)The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in the case of Google.c)Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales.d)Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.e)By investing time and money on writing articles in Cosmetico, Experia can reduce its customer acquisition costs to half to what they are now. Correct answer is option 'B'. 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The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.Which of the following most strongly undermines the ability of the company’s plan to increase its profits?a)An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user.b)The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in the case of Google.c)Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales.d)Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.e)By investing time and money on writing articles in Cosmetico, Experia can reduce its customer acquisition costs to half to what they are now. Correct answer is option 'B'. 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The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.Which of the following most strongly undermines the ability of the company’s plan to increase its profits?a)An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user.b)The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in the case of Google.c)Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales.d)Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.e)By investing time and money on writing articles in Cosmetico, Experia can reduce its customer acquisition costs to half to what they are now. Correct answer is option 'B'. 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The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.Which of the following most strongly undermines the ability of the company’s plan to increase its profits?a)An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user.b)The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in the case of Google.c)Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales.d)Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.e)By investing time and money on writing articles in Cosmetico, Experia can reduce its customer acquisition costs to half to what they are now. Correct answer is option 'B'. 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The company has, therefore, decided to shift some of its marketing funds from the magazine to Google to increase its overall profits.Which of the following most strongly undermines the ability of the company’s plan to increase its profits?a)An average reader of a Cosmetico magazine has income that is several times greater than the income of an average Google user.b)The conversion ratio from visitors to customers is several times higher in case of Cosmetico than in the case of Google.c)Last time, when the company shifted more of its resources from Cosmetico to Google, it resulted in an immediate increase in its sales.d)Given the large presence of Google across various geographies, the visitors that come from Google are much more spread geographically than those who come from Cosmetico.e)By investing time and money on writing articles in Cosmetico, Experia can reduce its customer acquisition costs to half to what they are now. Correct answer is option 'B'. 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