Events & Promotions
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13 Aug 2014, 07:54
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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.
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The argument cites an illustration where the promotional price reduction on the energy drinks has been highly profitable leading to a dramatic increase in unit sales, bringing in more customers. It further states that the survey within its consumers has indicated that the promotion has been favourably welcomed by the majority of them. Therefore to improve the company's profitability and enhance its perception in the eyes of the consumers, similar price reductions should be offered on all drinks produced by the firm. Although, the argument might sound logical, it suffers from major reasoning flaws.
Firstly, the author wrongly considers the success in promotional event to represent customer's favorable feedback. In reality, however, when any new product is launched in the market with promotional price reduction, it usually attracts a massive crowd mainly because of the curiosity of the customers in knowing whether it provides any edge over the existing players in the market, secondly because of the discounted price at which they are offered, which in turn is the reason behind the increase in the unit sales. It might happen that as soon as the promotional event ends, few consumers will continue to use that product. The author should not take a minor pilot program to represent the entire picture, for increasing the profitability there as several parameters that play the key role such as the quality, reasonable price and special addons which mainly attract the potential consumers.
Secondly, the author assumes that this event might enhance the company's image in the eyes of the consumers. The author fails to consider that the consumers give weightage to other factors such as quality and USP before coming to a conclusion. In contrary to what the author assumes, the frequent or prolonged promotional events might bring suspicion in turn leading to a skewed and skeptical perception about the product in the minds of the consumers.
Thirdly, the author extends to say that such promotional events should be provided on other drinks produced by the firm. There might be a case where a drink produced by a company is already popular among the people or a case where the production cost of a drink is itself high enough to give anough space for further reduction, such scenarios will be detrimental to the health of a business.The promotional event should take into account the specific drink's important attributes before putting it onto the promotional discount event.
Thus, in nutshell, the argument suffers from inherent logical flaws. The profitability of a product in the long run can neither be gauged by a pilot program nor can it reflect the product's popularity in the market.There are obvious reasons behind the increase in sales during the promotional discount event.I think that the author should have highlighted more viewpoints in order to bolster his claim and to assert his conclusion.
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 cites an illustration where the promotional price reduction on the energy drinks has been highly profitable leading to a dramatic increase in unit sales, bringing in more customers. It further states that the survey within its consumers has indicated that the promotion has been favourably welcomed by the majority of them. Therefore to improve the company's profitability and enhance its perception in the eyes of the consumers, similar price reductions should be offered on all drinks produced by the firm. Although, the argument might sound logical, it suffers from major reasoning flaws.
Firstly, the author wrongly considers the success in promotional event to represent customer's favorable feedback. In reality, however, when any new product is launched in the market with promotional price reduction, it usually attracts a massive crowd mainly because of the curiosity of the customers in knowing whether it provides any edge over the existing players in the market, secondly because of the discounted price at which they are offered, which in turn is the reason behind the increase in the unit sales. It might happen that as soon as the promotional event ends, few consumers will continue to use that product. The author should not take a minor pilot program to represent the entire picture, for increasing the profitability there as several parameters that play the key role such as the quality, reasonable price and special addons which mainly attract the potential consumers.
Secondly, the author assumes that this event might enhance the company's image in the eyes of the consumers. The author fails to consider that the consumers give weightage to other factors such as quality and USP before coming to a conclusion. In contrary to what the author assumes, the frequent or prolonged promotional events might bring suspicion in turn leading to a skewed and skeptical perception about the product in the minds of the consumers.
Thirdly, the author extends to say that such promotional events should be provided on other drinks produced by the firm. There might be a case where a drink produced by a company is already popular among the people or a case where the production cost of a drink is itself high enough to give anough space for further reduction, such scenarios will be detrimental to the health of a business.The promotional event should take into account the specific drink's important attributes before putting it onto the promotional discount event.
Thus, in nutshell, the argument suffers from inherent logical flaws. The profitability of a product in the long run can neither be gauged by a pilot program nor can it reflect the product's popularity in the market.There are obvious reasons behind the increase in sales during the promotional discount event.I think that the author should have highlighted more viewpoints in order to bolster his claim and to assert his conclusion.
13 Aug 2014, 11:43
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Dude...just look up some tricks or formats for the AWA on the forum itself,follow that and you 'll be golden. I myself got 5.5 two times by doing the same.
13 Aug 2014, 22:46
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@Akchatjha Could you please spare some time and let me know how u've improved from V28 to V40 .... in how many days...Even in my case, the verbal scores seem to lag far behind the Quant scores(currently 49/50).... I'm at V32 level....I just wish that atleast on the D-Day it touches 40...
