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11 Mar 2016, 00:30
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This is my essay from MGMAT test#3. Please review it and let me know where else I can improve. Thank yoy!! 
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.”
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.
MY RESPONSE:
According to the argument, the promotional price reductions in a company's energy drinks have been very successful. The beverage manufacturer tries to prove the claim by stating that the promotion was favorable received by majority of the consumers. The company thereby tries to improve the company's profitability by offering similar price reductions on all the energy drinks produced by their firm. However, the argument fails to address several important concerns that are required to substantiate the claim made in the argument.
First, the argument assumes that the promotional price reductions are the reason for the increase in the unit sale. However, the argument does not provide any evidence to support the fact that the promotional offers were the only reason for the sales increase. The manufacturer fails to assume that there might be other factors that could have contributed to the increase in the sales. The argument fails to consider that one of the company's competitor might have stopped the production and the sale of the similar energy drinks, making the manufacturer the sole producer of the particular variety of the energy drink. Had the argument included the above reasoning, the claim that promotional prices have increased the sales would have been strengthened.
Second, the argument claims that surveys of the customers indicate that the promotion was favorable received by majority of the customers. However, there is no information of the number of customers that were included the survey. The argument does not provide any information regarding the ages of the customers that were surveyed. Therefore, the argument fails to consider that the customers who had indicated that the promotion was favorable could have belonged to the first time customers and not the people who regularly consume the manufacturer's energy drinks.
Third, the argument concludes that the company would offer similar price reduction on all the drinks manufactured by them. However, the argument assumes the conclusion without providing any solid evidence to support the claim. The argument does not mention if all the drinks manufactured are equally preferred by the customers who prefer energy drinks.
In conclusion, the argument's assumption lacks evidence that is required to support the claim. Had the argument listed the other reasons to support increase in the sales, the information of the customers who had been surveyed and a logical explanation to prove that the same price reduction would favor all the company's drinks, the argument would have been strengthened."
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.”
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.
MY RESPONSE:
According to the argument, the promotional price reductions in a company's energy drinks have been very successful. The beverage manufacturer tries to prove the claim by stating that the promotion was favorable received by majority of the consumers. The company thereby tries to improve the company's profitability by offering similar price reductions on all the energy drinks produced by their firm. However, the argument fails to address several important concerns that are required to substantiate the claim made in the argument.
First, the argument assumes that the promotional price reductions are the reason for the increase in the unit sale. However, the argument does not provide any evidence to support the fact that the promotional offers were the only reason for the sales increase. The manufacturer fails to assume that there might be other factors that could have contributed to the increase in the sales. The argument fails to consider that one of the company's competitor might have stopped the production and the sale of the similar energy drinks, making the manufacturer the sole producer of the particular variety of the energy drink. Had the argument included the above reasoning, the claim that promotional prices have increased the sales would have been strengthened.
Second, the argument claims that surveys of the customers indicate that the promotion was favorable received by majority of the customers. However, there is no information of the number of customers that were included the survey. The argument does not provide any information regarding the ages of the customers that were surveyed. Therefore, the argument fails to consider that the customers who had indicated that the promotion was favorable could have belonged to the first time customers and not the people who regularly consume the manufacturer's energy drinks.
Third, the argument concludes that the company would offer similar price reduction on all the drinks manufactured by them. However, the argument assumes the conclusion without providing any solid evidence to support the claim. The argument does not mention if all the drinks manufactured are equally preferred by the customers who prefer energy drinks.
In conclusion, the argument's assumption lacks evidence that is required to support the claim. Had the argument listed the other reasons to support increase in the sales, the information of the customers who had been surveyed and a logical explanation to prove that the same price reduction would favor all the company's drinks, the argument would have been strengthened."
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