Products sold under a brand name used to command premium prices because, in general, they were superior to nonbrand rival...
GMAT Critical Reasoning : (CR) Questions
Products sold under a brand name used to command premium prices because, in general, they were superior to nonbrand rival products. Technical expertise in product development has become so widespread, however, that special quality advantages are very hard to obtain these days and even harder to maintain. As a consequence, brand-name products generally neither offer higher quality nor sell at higher prices. Paradoxically, brand names are a bigger marketing advantage than ever.
Which of the following, if true, most helps to resolve the paradox outlined above?
Passage Analysis:
| Text from Passage | Analysis |
| Products sold under a brand name used to command premium prices because, in general, they were superior to nonbrand rival products. |
|
| Technical expertise in product development has become so widespread, however, that special quality advantages are very hard to obtain these days and even harder to maintain. |
|
| As a consequence, brand-name products generally neither offer higher quality nor sell at higher prices. |
|
| Paradoxically, brand names are a bigger marketing advantage than ever. |
|
Argument Flow:
The argument moves from describing how brand products used to work (premium prices for superior quality), explains what changed (widespread technical expertise), shows the logical consequence (no more quality or price advantages), and then presents the puzzling contradiction (brand names are more powerful marketing tools than ever).
Main Conclusion:
There's a paradox where brand names have become more powerful marketing tools even though they no longer offer the quality or price advantages they used to provide.
Logical Structure:
The author builds a logical chain: Past situation → Key change → Expected consequence → Surprising contradiction. The premises establish that the traditional basis for brand power (quality advantage) has disappeared, yet somehow brand power has actually increased, creating a paradox that demands explanation.
Prethinking:
Question type:
Paradox - We need to find information that explains the seemingly contradictory situation where brand names have lost their quality and price advantages but somehow have become an even bigger marketing advantage than before.
Precision of Claims
The key claims are about comparative advantages: brand products USED TO have quality/price advantages but NO LONGER do, yet their marketing advantage has INCREASED. We need to respect that technical expertise is now widespread, quality gaps have disappeared, and price premiums are gone.
Strategy
For paradox questions, we need to find a reason that explains how both seemingly contradictory facts can be true at the same time. We're looking for information that shows WHY brand names could be more valuable for marketing even when they don't offer quality or price benefits. The answer should explain what NEW advantage or changed market condition makes brands more powerful despite losing their traditional advantages.
This perfectly resolves the paradox. If consumers view brand names as a guarantee of getting quality that matches the best rival products, then brands serve a new function in today's market. Since technical expertise is widespread and quality differences are hard to maintain, consumers face uncertainty when choosing products. Brand names become valuable as a risk-reduction tool - they signal that you'll get something at least as good as the best options available. This explains why brands are more powerful marketing tools now: they've shifted from promising superior quality to promising reliable, competitive quality in an uncertain marketplace.
This actually works against resolving the paradox. If consumers recognize that brand quality can drift over time, this would make brand names less trustworthy and less valuable as marketing tools, not more valuable. This doesn't explain why brands have become a bigger marketing advantage - it suggests they should be less advantageous.
While this shows that corporations value brand names highly (enough to acquire companies primarily for the brand rights), it doesn't explain why brand names are more powerful with consumers than they used to be. The paradox is about consumer behavior and marketing effectiveness, not corporate acquisition strategies. This choice talks about business decisions but doesn't address the consumer-side marketing advantage.
This discusses how it used to be easier to establish new brand names in the past, but this doesn't help explain why existing brand names are now more powerful marketing tools despite losing their quality and price advantages. We need to understand the current value of brands, not the historical ease of creating them.
This talks about companies changing advertising agencies when sales decline, but this is about marketing execution, not about why brand names themselves have become more valuable marketing assets. This doesn't address the core paradox of why brands are more powerful despite losing their traditional advantages.