The following appeared in a memorandum from the business off
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04 Sep 2020, 07:44
“The Lovin’ Cupful franchises in our northeast region have begun serving customers Almost, a brand new powdered instant tea, in place of brewed tea. Waiters report that only about 2 percent of the customers have complained and that customers who want refills typically ask for ‘more tea.’ It appears, then, that 98 percent of the customers are perfectly happy with the switch, or else they cannot tell powdered instant from brewed tea. Therefore, in order to take advantage of the lower price per pound of Almost, all of our restaurants should begin substituting it for brewed tea.”
Discuss how well reasoned . . . etc.
ANSWER
The author concludes that loving cupful should switch to instant tea in place of brewed tea as 98% customers are demanding more refill and only small percentage of people complained about the new tea. The analysis is not only based on mere assumptions but also break the food code under food safety authority of India.
First, the author mentions that only 2% of customers are against instant tea while others enjoy their tea and hence should switch to lower price instant tea. There might be a possibility that sales in northeast franchise of the company attract fewer customers who prefer tea and more customers who may weigh higher importance to other beverages like coffee and smoothies. So, that’s why percentage of complained is very low as demand of tea is low. Furthermore, its mere assumption that 98% of customers drink instant tea as the data collected above account for lack of analysis like what is percentage of other beverages or food products like cupcakes or pancakes. As the statement is silent about other products, author can’t assume that all 98% love instant tea. In addition, switching tea all over the franchise is may infer losses for the company as the analysis above shows demand of only one franchise and on the bases of it, changing the menu of all the stores maybe result into counter fire on the company, for instance, customer in southeast region may still prefer brewed tea and not instant tea. And thus will result into low sale and revenue. Since, the author didn’t consider these factors, this statement is flawed.
Second, the author mentions that customers are only asking for the refill and not the refill of instant tea. So, this concludes that the company hasn’t advertised about the new tea and are severing the customers instant tea instead of brewed one irrespective of customer knowledge. The company not only disturbing their customer service by far-fetching wrong service to its customers but also committing infringement of law by serving customers the tea of less value than of its actual value and procuring more money from the them.
The argument could be strengthened if the author considered other factors of different region in estimating the shift in the menu and informed customers before serving different item which is irrespective of their knowledge.
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