GMAT Practice Question Set #7 (Question 19-21)

Critical Reasoning Question #19: Advertising on Search Engine  
Time 0 0 : 0 0 : 0 0
Plan: Concerned about falling sales, the wallet company decided two years ago to increase by 50 percent the expenditures it allocated to advertising on an online search engine.
 
Result: The wallet company is no better off financially now than it was before the increase.
 
Further information: The company has not spent any money developing other accessory products and all of the company funded online campaigns have been successfully executed by the online search company.
 
In light of the further information, which of the following, if true, does most to explain the result that followed implementation of the plan?
(A)

The wallet company whose financial position has not improved relies entirely on the online search engine for its advertising.

(B)

The online search engine is so inefficient that advertising placement does not occur until as much as four weeks later.

(C)

The cost per click on the search engine for the niche keywords relevant to the wallet company has more than doubled in the first year.

(D)

The advertising budget increase occurred at a time when the company's cash balance was at an all-time high.

(E)

The most recent advertising budget increase was only the second such increase in the last ten years.

GMATTM is a registered trademark of the Graduate Management Admission CouncilTM. The Graduate Management Admission CouncilTM does not endorse, nor is it affiliated in any way with the owner or any content of this web site.