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test in a week...please rate my essay

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Intern
Joined: 30 Dec 2010
Posts: 25

Kudos [?]: 5 [0], given: 9

Location: United States
GMAT 1: 700 Q50 V35

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05 Feb 2011, 09:37
Hi,

Please rate my essay & give me some suggestion on how I can improve.

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.

The beverage manufacturer states claims that to improve company's profitability, the company should offer price reduction on all drinks produced by the company.To support this claim he gives an example of the dramatic increase in unit sales the company achieved after offering price reduction on energy drinks recently.
He also takes help of the results of the survey conducted.The manufacturer's premise,the basis for his argument lack any legitimate support and hence render his conclusion unacceptable.

The primary issue lies in the manufacturer's reasoning.He states that the dramatic increase in unit sales is due to the promotional price reductions on energy drinks.Many factors can affect the unit sales.It is possible that the summer was very harsh this time and hence more units were sold.It is also possible that the firm advertised the product really well and this caused increase in unit sales.Also the author provides no data comparing unit sales of the products for which the prices were reduced and the unit sales of the products for which the prices were not reduced.It is possible that the dramatic increase in unit sales was actually caused by later.

Secondly the manufacturer takes help of the survey conducted and states that the promotion was favorably received by majority of our customers.While this may be true the author provides no evidences to strongly support this.The author doesn't prove that the customers surveyed were representative of all customers.If the manufacturer surveyed only those people who purchased the product then the results of the survey can't be considered reliable.

In addition to above,the manufacturer thinks that such reduction in price will enhance the firm's perception in eyes of the consumers.But he cites no evidence to prove it.Moreover,such strategy can have an opposite effect.The consumers may suspect on the quality of the product and that can lead to overall decrease in the no. of units sold.

Finally the manufacturer states that to improve the company's profitability similar price reductions should be offered on all drinks produced by the firm.The manufacturer states only that the there is a dramatic increase in the no. of units sold.But he doesn't give any information on the corresponding sales & profits.If the additional no. of units sold are not sufficient to compensate for the loss created by reduction in prices then this strategy won't be good.Even if there won't be such risk,there is no guarantee that a similar reduction in the prices of all drinks will lead to increase in no.of unit sales.It is possible that the particular product was purchased by consumers not due to its reduced prices but they really liked the flavor.

In sum, the manufacturer's illogical argument is based on unsubstantiated premises and unstated evidences.If the manufacturer truly wants to convince his readers he will have to largely restructure his argument and give proper eveidences and state the assumption.Without doing so his illogical argument is likely to convince only few readers.

Kudos [?]: 5 [0], given: 9

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