Overall, a good essay. You do a nice job with structure and with concisely rephrasing portions of the argument and then addressing them. It is also good that it is easy to predict where you're heading quickly in each paragraph. Overall, probably a 5/6, mayyybe a 5.5.
I think you'd get docked for not discussing what I think are the two biggest logical flaws: that increased sales is not necessarily equivalent to profitability and that what's true for one category of drinks might not be true for another.
If we sell all the drinks for $0.01, we will probably sell a ton of them and our customers will love us. But we wont be in business long!! Profitability requires a more nuanced analysis than does unit sales. You address unit sales but missed the logical leap that the argument makes in going from unit sales to profitability.
And just because something is true for energy drinks doesn't necessarily mean it will be true of other categories. Perhaps people who drink energy drinks are more price-sensitive and/or less brand loyal than people who consume other drinks, so other drinks won't experience the same outcome.
Elsa123
Essay Question:
The following appeared in a corporate memorandum of a beverage manufacturer:
“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.”
Response
The argument states that to imporve company profitability and perception in the eyes of the consumer, a beverage manufacturer must offer price reductions. This the argument states is a good move because they company reduced prices on one energy drink and saw a dramatic increase in unit sales. The argument is flawed and reaches a hasty conclusion based on causality that may or may not be true.
Firstly, the argument claims that the reduction in prices was because of the promotional price reduction of the energy drink. This argument is flawed because the argument does not consider any other factors that could have resulted in increased sales. For example, it could be summer season and hence there could be an increased demand for energy drinks as is. All energy drinks in the market might be seeing increase is sales. We are not provided adequate information about other factors.
Next, the argument assumes that reducing the price of beverages will improve the companys perception in the eyes of the consumer. This argument is inconclusive without providing adequete backup for the conclusion. Consumer might or might not perceive goods sold at a discount postively. An example could be that the consumer thinks these good are offered on discount because of low quality or they can also think that the company was overcharging them till date and will not feel positively about the company.
The argument needs to evaluate reasons for increase in sales and do research on if discounted good will have the intended postive consequences that the argument claims to have.
In, conclusion the argument is flawed for the above mentioned reasons and is therefore unconvincing . It could be considerably stregthended if the author mentions all the relavent facts. Without these facts the argument is not logical and is open to debate.