In the small town of Oakville, the proprietors of the three locally owned coffee shops located there were dismayed to see that a major coffee shop chain with a big marketing budget had decided to open a shop in town. However, much to the surprise of the locally owned coffee shops’ proprietors, after the major coffee chain’s shop opened, all three locally owned shops experienced significant increases in business.
Which of the following does the most to explain the surprising outcome?
Most of the people who regularly drink coffee in Oakville prefer the taste of the locally owned shops’ coffee over that of the major chain’s coffee.
During peak hours, the length of time customers spend in line at the major chain’s shop is often longer than some people are willing to wait.
The proprietors of the locally owned coffee shops have run the shops for many years and are familiar to residents of Oakville.
The marketing messages that the major chain’s shop puts out to potential customers have convinced many that drinking coffee is enjoyable and life enhancing.
The major chain’s shop serves not only coffee but also gourmet sandwiches and desserts.
Scott Woodbury-Stewart
Founder and Expert GMAT Instructor
Solution:
Since this question starts with a passage that presents a paradoxical situation, and its question stem asks which choice explains the “surprising outcome,” this question is a Resolve the Paradox question.
What is the paradox presented here?
Fact #1: A major coffee shop chain with a big marketing budget opened a shop in Oakville.
Fact #2: After the major coffee chain’s shop opened, three locally owned shops experienced significant increases in business.
Rephrased as a question, the paradox presented in the passage looks something like this:
What Has to be Explained: Why would it be that, after a major coffee chain with a big marketing budget opened a shop in Oakville, three locally owned shops experienced significant increases in business?
Only an answer choice that explains why the three locally owned shops experienced increases in business will work. A choice that has any other effect or that explains anything else will not work.
(A) Most of the people who regularly drink coffee in Oakville prefer the taste of the locally owned shops’ coffee over that of the major chain’s coffee.
This choice could be tempting, because it describes a reason why locally owned coffee shops could successfully compete with the major chain’s shop. Notice, however, that the fact that people like the locally owned shops’ coffee does not explain why the shops would experience increases in business. People’s liking their coffee is not a new thing. So, there is no reason why it would cause a change now. So, this choice does not explain what we have to explain.
(B) During peak hours, the length of time customers spend in line at the major chain’s shop is often longer than some people are willing to wait.
This choice could be tempting, because it could be taken as indicating that, at times, in order to avoid the line at the major chain’s shop, some people might decide to go to local coffee shops. Notice, however, what the fact that there are long lines at the major chain’s shop really indicates is that the major chain’s shop has many customers. The major chain’s shop’s having many customers would not cause the local shops to have more customers than they did before the major chain’s shop opened. Also, for all we know, the local shops also have long lines during peak hours.
(C) The proprietors of the locally owned coffee shops have run the shops for many years and are familiar to residents of Oakville.
This choice could be tempting, because it describes a reason why locally owned coffee shops could successfully compete with the major chain’s shop. Notice, however, that the fact that people are familiar with the locally owned shops’ owners does not explain why the shops would experience increases in business. People’s knowing the locally owned shops’ owners is not a new thing caused by the presence of the major chain’s shop. So, there is no reason why it would cause a change now. Thus, this choice does not explain what we have to explain.
CORRECT ANSWER(D) The marketing messages that the major chain’s shop puts out to potential customers have convinced many that drinking coffee is enjoyable and life enhancing.
This choice could explain why the local shops experienced increases in business. The marketing done by the major chain’s shop convinced people to drink coffee. So, people in Oakville increased the amount of coffee that they drink, and all of the shops, including the local shops, experienced increases in business. Since this choice explains exactly what we have to explain, it is the correct answer.
(E) The major chain’s shop serves not only coffee but also gourmet sandwiches and desserts.
There is no clear reason to believe that the major chain’s shop’s serving gourmet sandwiches and desserts would result in an increase in business at the other shops. So, this choice does not explain what we have to explain.
