Which of the following, if true, weakens the CEO’s argument? A) Histo

QUESTION

Which of the following, if true, weakens the CEO’s argument?

A) Historically, technology companies have been able to leverage higher market shares to earn long-term profits.
B) Profits can be earned using captive-product pricing techniques, such as maintaining high margins on accessories.
C) A high number of bugs in the initial release of an operating system can cause the product to fail even if it is inexpensive.
D) Consumers adopt an operating system primarily because of specific technology requirements.
E) Low-priced open source operating systems have not been able to generate voluntary contributions.

ANSWER

Answer: D
Explanation: D) What do consumers value? If the answer is low price, the CEO’s argument is strengthened. If, however, consumers adopt an operating system primarily because of specific technology requirements, as Choice D indicates, the focus shifts from price, and the argument for low pricing is weakened. Choice A strengthens the CEOs argument by putting the focus on market share; low price would promote high market share, so if Choice A were true, the case for a low price would be stronger. Choice B strengthens the low penetration pricing strategy by suggesting alternative ways to generate profits. Choice C says that customers have quality expectations, which doesn’t tell us much about pricing strategy. If anything, it suggests that a low price won’t protect Doors from complaints over bugs. So Choice C does nothing to make the case for a low price. Choice E concerns voluntary contributions, not software that needs to be purchased.