Intern
Joined: 17 Apr 2014
Posts: 2
Given Kudos: 22
Concentration: General Management, Strategy
GMAT 1: 600 Q37 V35
GMAT 2: 710 Q46 V41
Feedback on Analysis of an Argument practise
[#permalink]
28 May 2014, 11:38
Hello I just wrote a practise essay on for the AWA section of the GMAT.
Would any of you please be kind enough to take a look and give feedback to me?
Spanish is my native language.
I am new to this forum so if this post should be relocated, please let me know and I´ll do so.
THANKS!!
here is the text:
[i]"Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company's profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm"
The arguments above establishes that price reductions in all drinks produced by the firm will result in better consumer perception and increased profits. The reason for the author of the argument to make this stance, is that a price reduction made in the past to one energy drink produced by the company had such results. While this argument seems logical and uses a real case as evidence it is flawed in many aspects.
First, the argument makes a questionable assumption, saying that other drinks will respond in the same way as the energy drink did. The author shows no evidence whatsoever that would make the reader consider this a plausible possibility. It could be the case that consumers of a drink are very different from consumers of the energy drink mentioned and their reactions to price changes could be different. For example, a consumer of Chivas Regal would be really skeptical about the quality of the whisky he/she is buying if he/she gets it at a discounted price.
Second, the argument fails to consider other reasons why the energy drink unit sales increased. The fact that two phenomena appear together does not imply causality. The unit sales increased could be attributed to a change in consumer tastes or changes in competing brands. For example if a competing energy brand had problems with their supply chain, maybe their product did not arrive in stores. That way, consumers may have had no other option than to buy other brand of energy drink
Third, the author does not give any information to establish that the price reduction was successful in increasing profit or enhance brand image. It is logical that unit sales increase after a price reduction but profit will increase only if the percentage change in unit sales is bigger than the percentage reduction in price. We are not told if that happened. Moreover, there is no clear connection between the price reduction and the brand perception by customers. Maybe the price reduction was accompanied by a compelling advertising campaign, responsible for this brand image enhancement.
In conclusion, the argument given is seriously flawed as it stands on an assumption too strong to be considered plausible and does not provide enough evidence to support the conclusion.
A further analysis on context and a broader supply of valid evidence would help to clear the serious doubt this argument raises. Otherwise, the above pronouncement has no solid grounds to stand on.