Salespersons have employed two major sales tactics in order to influence customers to make relatively high-priced selections when presented with...
GMAT Reading Comprehension : (RC) Questions
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Salespersons have employed two major sales tactics in order to influence customers to make relatively high-priced selections when presented with sequenced product lines (lines with graduated attributes and prices). The top-down tactic begins by presenting information on the highest-priced model and descends down the product line, explaining the sacrifices made with each step down. The way people use decision heuristics (rules of thumb) to simplify complex, information-rich decision tasks may explain the success of top-down selling. The "anchoring-and-adjustment" theory suggests that such mental shortcuts can systematically bias the decision outcome, as decision-makers start from an initial value or anchor point and adjust to yield a final decision.
The bottom-up sales tactic starts by presenting the lowest-priced model as the reference point and steps up to higher-priced models. Salespersons seek to communicate that the more expensive item is actually a better value. But nothing in the decision-heuristics literature supports the bottom-up strategy as an effective tactic, and to the extent that the anchoring-and-adjustment theory explains the effectiveness of top-down selling, it suggests that the bottom-up tactic should be ineffective. Furthermore, some psychologists suggest that customers may attribute less honesty and credibility to a salesperson who is trying to step them up the product line to a more expensive model; if true, this could limit the tactic's effectiveness.
Ques. 1/3
The author mentions decision heuristics in the highlighted text primarily in order to
Solution
1. Passage Analysis:
Progressive Passage Analysis
| Text from Passage | Analysis |
|---|---|
| Salespersons have employed two major sales tactics in order to influence customers to make relatively high-priced selections when presented with sequenced product lines (lines with graduated attributes and prices). | What it says: Salespeople use two main strategies to get customers to buy expensive items when showing product lines that go from cheap to expensive. What it does: Sets up the main topic - introduces that we'll learn about two sales tactics Source/Type: Factual statement about sales practices Connection to Previous Sentences: This is our opening - establishes the framework for everything to follow Visualization: Product Line Example: Basic phone ($200) → Standard phone ($400) → Premium phone ($800) Goal: Get customer to pick the $400 or $800 option, not the $200 What We Know So Far: There are 2 sales tactics for product lines What We Don't Know Yet: What these 2 tactics are or how they work Reading Strategy Insight: Clear setup sentence - we know exactly what to expect (2 tactics) |
| The top-down tactic begins by presenting information on the highest-priced model and descends down the product line, explaining the sacrifices made with each step down. | What it says: First tactic = start with the most expensive item, then show cheaper options by explaining what you give up with each cheaper choice What it does: Defines and explains the first of the two tactics mentioned Source/Type: Factual description of sales method Connection to Previous Sentences: This directly fulfills the promise from sentence 1 - giving us the first of the "two major sales tactics" Visualization: Top-Down Approach: 1st: "Here's our premium phone ($800) - has everything" 2nd: "This standard phone ($400) - but you sacrifice the advanced camera" 3rd: "This basic phone ($200) - but you sacrifice the camera AND fast processor" What We Know So Far: Tactic #1 = top-down (start expensive, work down) What We Don't Know Yet: Tactic #2, and why these tactics work |
| The way people use decision heuristics (rules of thumb) to simplify complex, information-rich decision tasks may explain the success of top-down selling. | What it says: The reason top-down selling works might be because people use mental shortcuts when making complicated decisions What it does: Provides a potential psychological explanation for why the first tactic is effective Source/Type: Author's analysis/theory about why the tactic works Connection to Previous Sentences: This builds directly on sentence 2 - now we're not just learning WHAT top-down is, but WHY it might work Visualization: Customer thinking: "This is complicated... I'll use a mental shortcut" Without shortcut: Compare all features systematically With shortcut: Start with $800 phone as reference point Reading Strategy Insight: The passage is building logically - What → Why. This is explanation, not new complexity. |
| The "anchoring-and-adjustment" theory suggests that such mental shortcuts can systematically bias the decision outcome, as decision-makers start from an initial value or anchor point and adjust to yield a final decision. | What it says: There's a specific theory called "anchoring-and-adjustment" that explains those mental shortcuts - people start with one number/option and make adjustments from there What it does: Gives the specific name and mechanism for the psychological explanation mentioned in the previous sentence Source/Type: Established psychological theory Connection to Previous Sentences: This is NOT new information! This restates and specifies what sentence 3 told us about "decision heuristics." The author is helping us by giving the technical name and simple explanation. Visualization: Anchoring in Action: Anchor: $800 premium phone (first thing shown) Customer adjusts: "That's too much, but maybe the $400 one is reasonable compared to $800" vs. if they started with $200 phone: "$400 seems expensive compared to $200" Reading Strategy Insight: Feel relieved here - this is simplification, not new complexity! The author just explained the psychology behind top-down selling. |
| The bottom-up sales tactic starts by presenting the lowest-priced model as the reference point and steps up to higher-priced models. | What it says: Second tactic = start with the cheapest item, then show more expensive options What it does: Defines the second sales tactic (opposite of top-down) Source/Type: Factual description of sales method Connection to Previous Sentences: This completes the framework from sentence 1 - we now have both "two major sales tactics." This contrasts directly with the top-down approach from sentence 2. Visualization: Bottom-Up Approach: 1st: "Here's our basic phone ($200) - good starter option" 2nd: "This standard phone ($400) - adds better camera" 3rd: "This premium phone ($800) - has everything" What We Know So Far: Both tactics defined - top-down vs. bottom-up What We Don't Know Yet: Which one works better and why Reading Strategy Insight: Perfect parallel structure - now we have the complete contrast set up |
| Salespersons seek to communicate that the more expensive item is actually a better value. | What it says: With bottom-up selling, salespeople try to convince customers that paying more is actually a better deal What it does: Explains the goal/strategy behind bottom-up selling Source/Type: Description of sales strategy Connection to Previous Sentences: This elaborates on sentence 5 - just like sentence 2 (top-down description) was followed by sentences 3-4 (why it works), now we're getting the strategy behind bottom-up Visualization: Bottom-up messaging: "For just $200 more, you get so much more value with the camera upgrade" "The premium is only $400 more but saves you from needing to upgrade later" Reading Strategy Insight: Same pattern as before - the passage is giving us what the tactic is, then how it's supposed to work |
| But nothing in the decision-heuristics literature supports the bottom-up strategy as an effective tactic, and to the extent that the anchoring-and-adjustment theory explains the effectiveness of top-down selling, it suggests that the bottom-up tactic should be ineffective. | What it says: Research shows bottom-up doesn't work well, and the same anchoring theory that explains why top-down works suggests bottom-up should fail What it does: Provides the key judgment - contrasts the effectiveness of the two tactics Source/Type: Research evidence and logical analysis Connection to Previous Sentences: This brings back the anchoring theory from sentences 3-4 and applies it to judge both tactics. This is the payoff - using what we learned about psychology to evaluate both approaches Visualization: Top-down: Anchor at $800 → customer adjusts down to $400 (seems reasonable) Bottom-up: Anchor at $200 → customer adjusts up reluctantly (each increase feels expensive) What We Know So Far: Top-down = effective, Bottom-up = ineffective (according to research) Reading Strategy Insight: This is the main conclusion! Everything before built to this judgment. |
| Furthermore, some psychologists suggest that customers may attribute less honesty and credibility to a salesperson who is trying to step them up the product line to a more expensive model; if true, this could limit the tactic's effectiveness. | What it says: There's another reason bottom-up might fail - customers might think salespeople using this approach are being dishonest What it does: Adds a second reason why bottom-up selling is problematic Source/Type: Additional psychological research/theory Connection to Previous Sentences: This reinforces sentence 7's conclusion that bottom-up is ineffective. "Furthermore" signals this is additional support, not new complexity. Visualization: Customer thinking during bottom-up: "They started with the cheap one... now they're trying to sell me up to expensive ones... are they just trying to make more money off me?" Reading Strategy Insight: "Furthermore" = reinforcement signal. The passage is strengthening its argument, not changing direction. Two reasons why bottom-up fails: 1) anchoring theory, 2) credibility issues |
2. Passage Summary:
Author's Purpose:
To compare two sales tactics used with product lines and explain why one works better than the other using psychological theories.
Summary of Passage Structure:
The author builds their argument by systematically examining two contrasting sales approaches:
- First, the author introduces that salespeople use two main tactics to get customers to buy expensive items from product lines.
- Next, the author explains the first tactic (top-down selling) and provides a psychological explanation for why it works, using anchoring theory.
- Then, the author describes the second tactic (bottom-up selling) and explains how salespeople try to make it work.
- Finally, the author shows that research suggests bottom-up selling is ineffective for two reasons: it goes against anchoring theory and may make salespeople seem dishonest.
Main Point:
Top-down selling (starting with expensive items and working down) is more effective than bottom-up selling (starting cheap and working up) because of how people's minds work when making decisions.
3. Question Analysis:
The question asks why the author mentions decision heuristics in the highlighted text. We need to identify the author's purpose in bringing up this psychological concept at that specific point in the passage.
Connecting to Our Passage Analysis:
From our passage analysis, we can see that decision heuristics are mentioned in sentence 3: "The way people use decision heuristics (rules of thumb) to simplify complex, information-rich decision tasks may explain the success of top-down selling."
Key insights from our analysis:
- The passage follows a clear structure: What → Why for each tactic
- Sentence 2 explained WHAT top-down selling is
- Sentence 3 begins explaining WHY top-down selling works
- The decision heuristics concept directly provides a psychological rationale for top-down effectiveness
- This is followed by sentence 4 which gives the specific name (anchoring-and-adjustment theory) for these heuristics
Prethinking:
The author mentions decision heuristics specifically to introduce a psychological explanation for why top-down selling is effective. This fits the passage's logical progression from describing the tactic to explaining why it works. The author is building toward the main conclusion that top-down selling is more effective than bottom-up selling, and decision heuristics provide the theoretical foundation for this argument.
Answer Choices Explained
A
acknowledge a way in which the effectiveness of bottom-up selling is limited
Why It's Wrong:
• The mention of decision heuristics occurs in the context of explaining top-down selling, not bottom-up selling
• At the point where heuristics are mentioned, the author hasn't even fully introduced bottom-up selling yet
• The heuristics discussion is about why top-down works, not about limitations of bottom-up
Common Student Mistakes:
1. Did I confuse the order of information in the passage?
→ Re-read carefully - heuristics are mentioned when discussing top-down, before bottom-up is fully explained
1. Am I thinking about the overall conclusion rather than the specific mention?
→ Focus on where and why heuristics are first introduced, not their later application
• The mention of decision heuristics occurs in the context of explaining top-down selling, not bottom-up selling
• At the point where heuristics are mentioned, the author hasn't even fully introduced bottom-up selling yet
• The heuristics discussion is about why top-down works, not about limitations of bottom-up
Common Student Mistakes:
1. Did I confuse the order of information in the passage?
→ Re-read carefully - heuristics are mentioned when discussing top-down, before bottom-up is fully explained
1. Am I thinking about the overall conclusion rather than the specific mention?
→ Focus on where and why heuristics are first introduced, not their later application
B
introduce a possible rationale for the effectiveness of the top-down sales tactic
Why It's Right:
• The heuristics are mentioned immediately after describing top-down selling to explain why it works
• The sentence structure shows clear causal relationship: "may explain the success of top-down selling"
• This fits the passage's logical progression from describing what top-down is to explaining why it's effective
Key Evidence: "The way people use decision heuristics (rules of thumb) to simplify complex, information-rich decision tasks may explain the success of top-down selling."
• The heuristics are mentioned immediately after describing top-down selling to explain why it works
• The sentence structure shows clear causal relationship: "may explain the success of top-down selling"
• This fits the passage's logical progression from describing what top-down is to explaining why it's effective
Key Evidence: "The way people use decision heuristics (rules of thumb) to simplify complex, information-rich decision tasks may explain the success of top-down selling."
C
help outline a theory that explains the bias salespersons show toward a particular sales tactic
Why It's Wrong:
• The passage doesn't suggest salespersons are biased toward a particular tactic
• Decision heuristics explain customer behavior, not salesperson preferences
• The theory explains effectiveness, not bias in tactic selection
Common Student Mistakes:
1. Am I confusing who the heuristics apply to?
→ Heuristics describe how customers make decisions, not how salespeople choose tactics
1. Did I misread "bias the decision outcome" as meaning salesperson bias?
→ This refers to how heuristics bias customer decisions, not salesperson preferences
• The passage doesn't suggest salespersons are biased toward a particular tactic
• Decision heuristics explain customer behavior, not salesperson preferences
• The theory explains effectiveness, not bias in tactic selection
Common Student Mistakes:
1. Am I confusing who the heuristics apply to?
→ Heuristics describe how customers make decisions, not how salespeople choose tactics
1. Did I misread "bias the decision outcome" as meaning salesperson bias?
→ This refers to how heuristics bias customer decisions, not salesperson preferences
D
provide an example of a process used by salespersons in deciding whether a particular sales tactic will be effective
Why It's Wrong:
• Decision heuristics describe how customers think, not how salespeople decide on tactics
• The passage doesn't discuss salesperson decision-making processes
• Heuristics are presented as explaining customer behavior during purchases
Common Student Mistakes:
1. Am I mixing up the perspective - customer vs. salesperson?
→ Focus on who is using the heuristics according to the passage
1. Did I misinterpret the context of the heuristics discussion?
→ Re-read to see heuristics explain why tactics work on customers, not how salespeople choose tactics
• Decision heuristics describe how customers think, not how salespeople decide on tactics
• The passage doesn't discuss salesperson decision-making processes
• Heuristics are presented as explaining customer behavior during purchases
Common Student Mistakes:
1. Am I mixing up the perspective - customer vs. salesperson?
→ Focus on who is using the heuristics according to the passage
1. Did I misinterpret the context of the heuristics discussion?
→ Re-read to see heuristics explain why tactics work on customers, not how salespeople choose tactics
E
identify a theoretical issue on which proponents of the top-down and bottom-up sales tactics disagree
Why It's Wrong:
• There's no mention of disagreement between proponents of different tactics
• Decision heuristics are presented as an established theory, not a point of contention
• The passage presents research consensus, not theoretical disagreement
Common Student Mistakes:
1. Am I assuming there must be disagreement because two tactics are presented?
→ The passage actually shows research consensus that one tactic works better
1. Did I confuse different effectiveness with theoretical disagreement?
→ The same theory (heuristics/anchoring) explains why one works and the other doesn't
• There's no mention of disagreement between proponents of different tactics
• Decision heuristics are presented as an established theory, not a point of contention
• The passage presents research consensus, not theoretical disagreement
Common Student Mistakes:
1. Am I assuming there must be disagreement because two tactics are presented?
→ The passage actually shows research consensus that one tactic works better
1. Did I confuse different effectiveness with theoretical disagreement?
→ The same theory (heuristics/anchoring) explains why one works and the other doesn't
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