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21 Feb 2018, 13:12
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Read the statement(s) and the instructions that follow, and then make any notes that will help you plan your response. Begin typing your response in the box at the bottom of the screen.
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.”
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 passage describes the effects of a price reduction on a product by a company, the results that the company obtained by surveying his consumers and the conclusion in which the company infers about its campaign. The main conclusion of the company suggests that considering the fact that the price reduction of the energy drinks increased the sales of that product and the fact that most of the costumers surveyed responded favorably to that promotion, the best decision for the company to improve sales is to reduce the prices of all drinks produced. This argument is superficial and presents different flaws that are easy to explain.
First, in the passage the company generalize the idea that the good results of a promotion of a single product can be generalized for an entire category. This is not always true, in fact, could be possible that during the promotion period energy drinks were very desired because there was a global campaign that advertised energy drink as the best drinks to consume; probably the same result could not be surely obtained for other categories of drink. Or for example could be possible that in the promotion period, energy dinks prices of the competitors increased, and so people bought the cheapest energy drink on the market; a situation that could be different with the other drinks.
Second, in the passage the company based its results on a survey and concluded that the application of the promotion to other drinks could increase not only the company's profitability but also the perception that costumers have of the company. This is a too superficial conclusion, because could be possible that with the promotion the company could increase its profits but the client can perceive the company as a cheap company and loose the desire to buy the products, or could be the opposite, and the clients could perceive the company as a “costumer friendly” one, but the promotion produce a reduction of margins a so of the profits.
As sawn, the company conclusion could be interpreted in different ways, mostly because the company didn't provide sufficient data to analyze the situation and evaluate whether the conclusion is correct or not. For example, having data of the price reduction and of margins of profit for the energy dinks and for the drinks category in general, could help to evaluate the profitability of the promotion; or a better survey can address the idea that decreasing the prices of all the product could affect negatively the perception of the company by consumers.
In conclusion, as previously mentioned, the argument is too superficial and generalizes too quickly the effectiveness of the promotion on the entire drink category.
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.”
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 passage describes the effects of a price reduction on a product by a company, the results that the company obtained by surveying his consumers and the conclusion in which the company infers about its campaign. The main conclusion of the company suggests that considering the fact that the price reduction of the energy drinks increased the sales of that product and the fact that most of the costumers surveyed responded favorably to that promotion, the best decision for the company to improve sales is to reduce the prices of all drinks produced. This argument is superficial and presents different flaws that are easy to explain.
First, in the passage the company generalize the idea that the good results of a promotion of a single product can be generalized for an entire category. This is not always true, in fact, could be possible that during the promotion period energy drinks were very desired because there was a global campaign that advertised energy drink as the best drinks to consume; probably the same result could not be surely obtained for other categories of drink. Or for example could be possible that in the promotion period, energy dinks prices of the competitors increased, and so people bought the cheapest energy drink on the market; a situation that could be different with the other drinks.
Second, in the passage the company based its results on a survey and concluded that the application of the promotion to other drinks could increase not only the company's profitability but also the perception that costumers have of the company. This is a too superficial conclusion, because could be possible that with the promotion the company could increase its profits but the client can perceive the company as a cheap company and loose the desire to buy the products, or could be the opposite, and the clients could perceive the company as a “costumer friendly” one, but the promotion produce a reduction of margins a so of the profits.
As sawn, the company conclusion could be interpreted in different ways, mostly because the company didn't provide sufficient data to analyze the situation and evaluate whether the conclusion is correct or not. For example, having data of the price reduction and of margins of profit for the energy dinks and for the drinks category in general, could help to evaluate the profitability of the promotion; or a better survey can address the idea that decreasing the prices of all the product could affect negatively the perception of the company by consumers.
In conclusion, as previously mentioned, the argument is too superficial and generalizes too quickly the effectiveness of the promotion on the entire drink category.
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