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.”
Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.
The argument claims that since the promotional price reduction of the energy drinks produced by a firm has been favorably received the the majority of its customers,similar price reductions should be offered on all drinks produced by that firm.Stated this way the argument fails to provide evidence ,on the basis of which it could be evaluated.The conclusion relies on assumptions for which there is no clear evidence.Therefore the argument is rather unconvincing and flawed.
First,the argument claims that in order to increase the company's profitability ,price reductions,similar to the energy drink price reductions,should be offered on all drinks offered by the firm.This is a weak claim as the argument fails to provide evidence if the price reduction in energy drinks led to improvement in company's profitability.It could be possible that the customers were lured into buying the energy drink just because of the reduction in price .Consequently,they would stop or reduce buying the energy drink if it's price was increased to what it was before.If this was the situation,then it is highly unlikely that the reduction in price on other drinks offered by the firm would lead to increased profitability;instead,it could lead to loss because of the heavy discount offered on the drinks.Therefore,the argument would have been clearer if the author would have provided evidence of the reduction in price of energy improved company's profits.
Second,the argument readily assumes that the reduction in the price of the drinks would enhance the company's perception in the eyes of the customers.This is yet again a very weak claim as the argument does not provide any correlation between the price reduction of the drink and the company's perception in the eyes of the customers.What if the other drinks produced by the firm were already famous among it's customers?A sudden reduction in it's price may change the opinion ,about the drink, of the customers.They may think that the price has been reduced since the drink is not doing well in the market.This may have a negative impact on the company's perception on the eyes of the customer.Therefore,the claim is unconvincing.
Third,the argument fails to mention the difference in the sales of the energy drink and the other drinks produced in the market.For instance,if the energy drink is new in the market then to increase its popularity among customers ,the price reduction scheme might work,but the same strategy would not necessary apply to other drinks if they were already known to customers.What if the other drinks were not doing very well in the marker because of their quality?If so,then people would be hesitant to buy the drink even after their price was reduced.Without convincing answers to these questions,one is left with the impression that the argument is more of a wishful thinking that substantive evidence.
In summary,the argument is flawed for the above mentioned reasons .Without any clear evidence the argument is unsubstantiated and open to debate.