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The Cumquat Cafe

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Author Message
Manager
Manager
avatar
Status: Persevering
Joined: 15 May 2013
Posts: 224
Location: India
Concentration: Technology, Leadership
GMAT Date: 08-02-2013
GPA: 3.7
WE: Consulting (Consulting)
Followers: 1

Kudos [?]: 53 [0], given: 34

GMAT ToolKit User
The Cumquat Cafe [#permalink] New post 27 Aug 2013, 10:01
Words:304 Initial time:22min Revision:5 min

The following appeared as part of a campaign to sell advertising time on a local radio station to local businesses.
“The Cumquat Cafe began advertising on our local radio station this year and was delighted to see its business increase by 10 percent over last year’s totals. Their success shows you how you can use radio advertising to make your business more profitable.”
Discuss how well reasoned... etc.


My response:

The author in the argument concludes that as the cumquat cafe increased its business by 10 percent over the last year by advertising in the local radio station, so other businesses should follow suit and advertise their businesses on the local radio to make their business more profitable. However, the argument is flawed because it fails to supply sufficient support in favor of the argument.

First, we are told that for Cumquat Cafe increased its business by 10 percent over the last year by advertising in the local radio, but it has not been mentioned that whether the increase in the business was offset by the amount of money spent on advertisement in the radio channel. If the previous scenario holds true, then companies actually might not be increasing their profits.


Second, Even if we consider that the business for cumquat coffee increased after it advertised in the local radio, we cannot be sure that this will happen for other businesses. It could well be the case that many people who listen to the radio might be coffee consumers, but might not be interested in other products. Therefore, the generalization that the author makes based on a single case might not hold true for other scenarios or businesses.


Finally, there could be other alternate reasons that could have contributed to the success of the cafe business such as opening of a new outlet or better management of the cafe resources or introduction of a new product in the cafe outlet that sold well. Any of these reasons could account for the increase in the business. Therefore, advertising in the local radio might not be the only contributor for the increase in the cafe business.


In light of the above the argument is flawed and it can be strengthened if the aforementioned concerns are addressed.
_________________

--It's one thing to get defeated, but another to accept it.

The Cumquat Cafe   [#permalink] 27 Aug 2013, 10:01
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