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Premium coffee shops in major metropolitan areas typically charge $4-6 for specialty drinks, while independent cafes in the same neighborhoods...

GMAT Information and Ideas : (Ideas) Questions

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Premium coffee shops in major metropolitan areas typically charge $4-6 for specialty drinks, while independent cafes in the same neighborhoods charge $2-3 for similar beverages. Standard business practices suggest that higher prices reflect premium ingredients, superior preparation methods, or enhanced customer service. However, blind taste tests reveal that beverages from both types of establishments receive similar quality ratings from consumers. Business consultants hypothesized that the price difference stems from premium coffee shops' strategic location advantages—securing high-traffic corner spots and prime real estate that independent cafes cannot afford.

Which finding, if true, would most directly weaken the consultants' hypothesis?

A

Premium coffee shops invest significantly more in interior design and ambiance than independent cafes do.

B

Independent cafes and premium coffee shops show no significant difference in foot traffic or location desirability ratings.

C

Premium coffee shops typically sign longer-term leases that lock in lower rental rates compared to independent cafes.

D

Consumer surveys indicate that customers choose premium coffee shops primarily based on convenience and location accessibility.

Solution

Step 1: Decode and Map the Passage

Part A: Passage Analysis Table

Text from PassageAnalysis
'Premium coffee shops in major metropolitan areas typically charge $4-6 for specialty drinks, while independent cafes in the same neighborhoods charge $2-3 for similar beverages.'
  • What it says: Premium shops = $4-6, independent = $2-3, same areas
  • What it does: Establishes the price gap we need to explain
  • What it is: Context/setup
'Standard business practices suggest that higher prices reflect premium ingredients, superior preparation methods, or enhanced customer service.'
  • What it says: Higher prices usually = better ingredients/service/prep
  • What it does: Introduces the expected explanation for price differences
  • What it is: Background assumption
'However, blind taste tests reveal that beverages from both types of establishments receive similar quality ratings from consumers.'
  • What it says: Taste tests show same quality ratings
  • What it does: Contradicts the expected explanation we just learned
  • What it is: Contrasting evidence
'Business consultants hypothesized that the price difference stems from premium coffee shops' strategic location advantages—securing high-traffic corner spots and prime real estate that independent cafes cannot afford.'
  • What it says: Consultants think: price gap = location advantages (premium gets better spots)
  • What it does: Presents the theory we need to evaluate
  • What it is: Central hypothesis

Part B: Passage Architecture & Core Elements

Main Point: Business consultants propose that location advantages, not quality differences, explain why premium coffee shops charge more than independent cafes.

Argument Flow: The passage sets up a puzzle—premium shops charge more but don't offer better quality—then presents the consultants' location-based theory as a potential solution.

Step 2: Interpret the Question Precisely

What's being asked? Which finding would most directly weaken the consultants' hypothesis

What type of answer do we need? Evidence that undermines their location-advantage theory

Any limiting keywords? 'Most directly' means we want the strongest, most relevant counter-evidence

Step 3: Prethink the Answer

  • The consultants claim that premium coffee shops can charge more because they secure better locations—high-traffic spots that independent cafes can't afford
  • To weaken this hypothesis, we'd need evidence showing either:
    • Location advantages don't actually exist between these types of shops
    • Location isn't what's driving the price difference
    • The premise about location accessibility/desirability is false
  • So the right answer should provide evidence that contradicts the core assumption that premium shops have location advantages over independent cafes
Answer Choices Explained
A

Premium coffee shops invest significantly more in interior design and ambiance than independent cafes do.

✗ Incorrect

  • This suggests premium shops invest more in interior design and ambiance
  • While this offers an alternative explanation for higher prices, it doesn't directly address whether location advantages exist
B

Independent cafes and premium coffee shops show no significant difference in foot traffic or location desirability ratings.

✓ Correct

  • This directly contradicts the consultants' core claim about location advantages
  • If there's no significant difference in foot traffic or location desirability ratings, then the foundation of their hypothesis crumbles
C

Premium coffee shops typically sign longer-term leases that lock in lower rental rates compared to independent cafes.

✗ Incorrect

  • This actually makes the price puzzle more confusing since premium shops would have lower rent costs
  • It doesn't address whether location advantages exist—just rental arrangements
D

Consumer surveys indicate that customers choose premium coffee shops primarily based on convenience and location accessibility.

✗ Incorrect

  • This would actually support the consultants' hypothesis by showing customers do choose premium shops for location reasons
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