GMAT Integrated Reasoning
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Source: Other
Level: 3
Brand Manager:
The decline in sales for MangoBerry apparel has various causes. One contributing factor is the rise of competitor PeachPlay, which has recently reduced its prices by 20%. PeachPlay previously received unwanted press from a consumer reports website due to a customer complaint. PeachPlay then incurred expenses to improve its public image surrounding this complaint. PeachPlay subsequently released a catchy video that went viral and boosted positive visibility for PeachPlay - units sold subsequently doubled.
Indicate in the table which cause-and-effect sequence would most likely, according to the brand manager, result in a decline in sales for MangoBerry. Make only two selections, one in each column.
Cause | Effect | |
---|---|---|
Lowering PeachPlay prices by 20% | ||
Raising PeachPlay prices by 20% | ||
Growth in sales and visibility for PeachPlay | ||
Decline in sales and visibility for PeachPlay | ||
Release of a viral video |