There is relatively little room

Answer choices

1. A

   No Impact7% picked this

   Most of the major carpet producers market other floor coverings

   The fact that major carpet producers also market other floor coverings is irrelevant to the conclusion about how to gain market share in the carpet market itself. The conclusion focuses on gaining market share specifically in carpets.

   7%
2. B

   Opposite Impact4% picked this

   Most established carpet producers market several different brand names and varieties, and there is no remaining niche in the market

   This helps the author argue that there's no way to increase market share by coming up with a new brand that serves an underserved niche.

   4%
3. C

   No Impact32% picked this

   Two of the three mergers in the industry’s last ten years led to a decline in profits and revenues

   The conclusion is about market share, not profit or revenue. And the author wasn't saying that companies SHOULD merge, so it doesn't hurt their argument to say that some mergers have gone poorly. This conclusion is purely about whether more aggressive marketing COULD help gain market share.

   32%
4. D

   Correct56% picked this

   Price reductions, achieved by cost-cutting in production, by some of the dominant firms in the carpet market are causing other producers

   Why this is right

   This answer indicates that price reductions from dominant firms are making it hard for other producers to compete, causing them to leave the market. This shifts market share to those successful in cost-cutting and price reduction without the need for acquiring competitors, thereby casting doubt on the conclusion. Any time one company leaves a market, the remaining companies usually increase their market share because customers of that old company become new customers of the remaining companies. (i.e. if 7Sage has 20% of the LSAT student market and then were to collapse, then remaining companies like LSAT Lab and LSAT Demon would likely see their market shares increase as former 7sage customers would become customers of Lab / Demon)

   Skill tested: Weaken · how this choice captures the argument's function is the move to repeat next time.

   56%
5. E

   Opposite (if anything)1% picked this

   The carpet market is unlike most markets in that consumers are becoming increasingly resistant to

   The resistance to new patterns and styles suggests that customers may not be swayed by marketing focusing on new designs, so if anything this helps the author argue that new marketing schemes aren't going to win over customers and thereby increase market share.

   1%