CAT 2019 Slot 1VARC Question 2

Mixed PracticeEasy
Passage / Data

Answer the following questions based on the information given below.

Contemporary internet shopping conjures a perfect storm of choice anxiety. Research has consistently held that people who are presented with a few options make better, easier decisions than those presented with many. . . . Helping consumers figure out what to buy amid an endless sea of choice online has become a cottage industry unto itself. Many brands and retailers now wield marketing buzzwords such as curation, differentiation, and discovery as they attempt to sell an assortment of stuff targeted to their ideal customer. Companies find such shoppers through the data gold mine of digital advertising, which can catalog people by gender, income level, personal interests, and more. Since Americans have lost the ability to sort through the sheer volume of the consumer choices available to them, a ghost now has to be in the retail machine, whether it’s an algorithm, an influencer, or some snazzy ad tech to help a product follow you around the internet. Indeed, choice fatigue is one reason so many people gravitate toward lifestyle influencers on Instagram—the relentlessly chic young moms and perpetually vacationing 20-somethings—who present an aspirational worldview, and then recommend the products and services that help achieve it. . . .

For a relatively new class of consumer-products start-ups, there’s another method entirely. Instead of making sense of a sea of existing stuff, these companies claim to disrupt stuff as Americans know it. Casper (mattresses), Glossier (makeup), Away (suitcases), and many others have sprouted up to offer consumers freedom from choice: The companies have a few aesthetically pleasing and supposedly highly functional options, usually at mid-range prices.

They’re selling nice things, but maybe more importantly, they’re selling a confidence in those things, and an ability to opt out of the stuff rat race. . . .

One-thousand-dollar mattresses and $300 suitcases might solve choice anxiety for a certain tier of consumer, but the companies that sell them, along with those that attempt to massage the larger stuff economy into something navigable, are still just working within a consumer market that’s broken in systemic ways. The presence of so much stuff in America might be more valuable if it were more evenly distributed, but stuff’s creators tend to focus their energy on those who already have plenty. As options have expanded for people with disposable income, the opportunity to buy even basic things such as fresh food or quality diapers has contracted for much of America’s lower classes.

For start-ups that promise accessible simplicity, their very structure still might eventually push them toward overwhelming variety. Most of these companies are based on hundreds of millions of dollars of venture capital, the investors of which tend to expect a steep growth rate that can’t be achieved by selling one great mattress or one great sneaker. Casper has expanded into bedroom furniture and bed linens. Glossier, after years of marketing itself as no-makeup makeup that requires little skill to apply, recently launched a full line of glittering color cosmetics. There may be no way to opt out of stuff by buying into the right thing.

Based on the passage, all of the following can be inferred about consumer behaviour EXCEPT that:

Answer & solution

Correct answer: consumers tend to prefer products by start-ups over those by established companies.

  • A

    consumers are susceptible to marketing images that they see on social media.

  • B

    having too many product options can be overwhelming for consumers.

  • consumers tend to prefer products by start-ups over those by established companies.

  • D

    too many options have made it difficult for consumers to trust products.

Solution

Easy

An EXCEPT question: three options are supported by the passage and one is not. Confirm each inference against the text; the answer is the one that is never stated or implied.

A

"Consumers are susceptible to marketing images on social media." — Inferable, so not the answer. The passage says "so many people gravitate toward lifestyle influencers on Instagram" who "present an aspirational worldview, and then recommend the products" — direct support for susceptibility to social-media marketing.

B

"Too many product options can be overwhelming." — Inferable, so not the answer. The opening states internet shopping "conjures a perfect storm of choice anxiety" and that people with "many" options decide worse than those with few. Clearly supported.

C

"Consumers tend to prefer products by start-ups over those by established companies." — Correct (the EXCEPT). The passage describes what the start-ups offer and predicts their fate, but it never compares consumer preference for start-ups versus established firms. No data on relative preference appears anywhere. This cannot be inferred, so it is the answer.

D

"Too many options have made it difficult for consumers to trust products." — Inferable, so not the answer. The start-ups sell "a confidence in those things" and a way to "opt out of the stuff rat race"; the "ghost in the retail machine" exists because shoppers cannot sort the volume themselves. This implies an erosion of trust amid too much choice.

Option C is correct. The passage never compares consumer preference for start-ups against established companies, so this alone cannot be inferred — making it the EXCEPT.

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CAT 2019 Slot 1 VARC Q2: Based on the passage, all of the following can be inferred about consumer behaviour EXCEPT that: — Solution | TheCATExam