GMAT Essays (AWA)

OG - 13 Page 805 : The first topic -SAMPLE ESSAY

In the preceding claim the author states that the Easy Credit Company would benefit from a logo on their credit cards of a well known environmental company which would result on an increase use among existing customers and allow the company to charge higher rates among other benefits.
Although the Author's argument might have some merit the arguments presents several weaknesses including unsubstantiated premises and several unproved assumptions that make the argument non valid.

Firstly the author believes that a logo from a well know environmental organization would boost the adoption of their credit card and the only argument he uses to support that is the one claiming that mostly of the public is concerned by environmental issues. We can easily spot the weakness of his argument by seeing that the public concern might not be enough of a reason for a customer to choose between one or another company. Most of the people might say in the poll that they are concerned but that does't mean that they will act in consequence. Even though the symbol on the card might give a good impression of Easy Credit Company we have no evidence to assert that the logo is gonna make the difference indeed.

Secondly the author bases his premises on the results of a recent poll but we don't know a thing about this poll, is the sample representative of the target population ( the one susceptible to use a credit card)? Is the sample big enough to represent the public? The information we have is to little to assert that this policy will indeed attract new customers.

Thirdly the author's conclusion is that the policy will attract new customers, for which he doesn't give enough evidences and that it will increase use among existing customers, this is ridiculous, will I spend more because I have a logo of a company on my credit card? Or will I spend more knowing that part of the proceeds will be donated to an environmental company? What if all existing customers are not concerned by environmental issues? There will not be an increase use of the credit card. Even better, what if among all credit card users just a little percentage is concerned by environmental issues? We don't know that. Finally the author doesn't provide any evidence suggesting that by raising the interest rates customer will not leave them to seek for another company with lower interests, he is just speculating without giving us any proof.

For all the above reasons the author's claim cannot be considered valid because he doesn't give enough evidences supporting his claim and he makes assumptions that don't link in a correct way the concern of the public about environmental issues and the possible advantage of this concern for the Easy credit company.

here's transcript of the topic:

The following appeared as part of a plan proposed by an executive of the Easy Credit Company to the president:
"The Easy Credit Company would gain an advantage over competing credit card services if we were to donate a portion of the proceeds from the use of our cards to a well-known environmental organization in exchange for the use of its symbol or logo on our card. Since a recent poll shows that a large percentage of the public is concerned about environmental issues, this policy would attract new customers, increase use among existing customers, and enable us to charge interest rates that are higher than the lowest ones available."