CAT 2019 Slot 1VARC Question 4

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.

A new food brand plans to launch a series of products in the American market. Which of the following product plans is most likely to be supported by the author of the passage?

Answer & solution

  • A range of 10 products priced between 5and5 and10.

  • B

    A range of 25 products priced between 5and5 and10.

  • C

    A range of 10 products priced between 10and10 and25.

  • D

    A range of 25 products priced between 10and10 and25.

Solution

Easy

Identify the author's two values for a "good" product plan. (1) Few options — the author favours limited choice over overwhelming variety. (2) Accessible to the lower classes — the author laments that basics like "fresh food" have become harder for "America's lower classes" to buy. So we want the plan with the fewest products at the lowest prices.

A

10 products, 55–10. — Correct. Fewest options (10, not 25) and lowest price band (55–10). This satisfies both author values: limited choice and affordability for lower-income consumers, exactly the gap the author says the market ignores.

B

25 products, 55–10. — Wrong. Low price is good, but 25 options moves toward the "overwhelming variety" the author criticizes. More choice than A.

C

10 products, 1010–25. — Wrong. Few options is good, but the higher price band tilts toward the affluent, contradicting the author's concern for affordable basics. Less accessible than A.

D

25 products, 1010–25. — Wrong. The worst on both counts: most options and highest prices. Opposite of what the author endorses.

Option A is correct. The fewest products (10) at the lowest prices (55–10) best matches the author's twin preferences for limited choice and affordability for the lower classes.

CAT 2019 Slot 1 VARC Q4: A new food brand plans to launch a series of products in the American market. Which of the following product p — Solution | TheCATExam