GMAT Focus EditionVerbal ReasoningHard
A market research firm advises a new e-commerce startup to focus its advertising budget on social media influencers, claiming this strategy will generate a higher return on investment (ROI) than traditional online display advertising. The firm bases its recommendation on a recent study showing that 80% of consumers aged 18-34 reported purchasing a product after seeing it promoted by an influencer. Which of the following, if true, most seriously challenges the firm's recommendation?
- AThe study did not track the actual ROI for influencer marketing versus other advertising methods.
- BTraditional online display advertising consistently reaches a broader audience than social media influencers.
- CMany consumers follow influencers who promote products they already intend to purchase.
- DThe startup's target demographic primarily consists of consumers aged 45-65.
Show answer & explanationAnswer & explanation
Correct answer: D. The startup's target demographic primarily consists of consumers aged 45-65.
The market research firm bases its recommendation for an e-commerce startup on a study about consumers aged 18-34. If the startup's target demographic is primarily 45-65 (Option A), then the data from the 18-34 age group is not applicable, directly challenging the relevance and effectiveness of the recommendation for *this specific startup*.
Why the other options are wrong
- A. Lack of direct ROI tracking weakens the study's conclusion in general, but doesn't specifically challenge the *applicability* of the recommendation to the startup's situation.
- B. While broader reach is a benefit, it doesn't directly challenge the *ROI* claim for the *startup's specific demographic* if influencers are highly effective for that demographic.
- C. This points to potential self-selection bias in influencer marketing, weakening the overall effectiveness claim, but not as directly challenging the *applicability to the startup's specific target market* as option A.
Challenging Applicability of Evidence
Questioning whether data or findings from one context are relevant or generalizable to a different, specific situation or target group.
- Focuses on differences between the study population/conditions and the target population/conditions.
- Highlights issues of representativeness or external validity.
- Undermines recommendations based on misapplied evidence.
Memory trick: Don't cross a bridge if it's built for a different river.