I have my GMAT on 7th Jan. Any thoughts/suggestions/ areas for improvement will be very helpful. Thanks
The following appeared in the opinion column of a financial magazine:
“On average, middle-aged consumers devote 39 percent of their retail expenditure to department store products and services, while for younger consumers the average is only 25 percent. Since the number of middle-aged people will increase dramatically within the next decade, department stores can expect retail sales to increase significantly during that period. Furthermore, to take advantage of the trend, these stores should begin to replace some of those products intended to attract the younger consumer with products intended to attract the middle-aged consumer.”
Discuss how well reasoned . . . etc.
The author predicts that the retail sales in departmental store will increase dramatically over the next decade. Therefore he encourages the departmental stores to replace the products for younger population with those for middle aged people. The author's predictions are based on the evidence that middle aged population is the primary customer for departmental stores since they spend 39% of their retail expenditure in departmental stores as compared to 29% by younger population. I am not convinced with the argument.
Firstly, the argument doesn't compare the actual spending of middle aged population to that of younger population. It may be that the younger population spends more than middle aged population. Hence the total expenditure by younger population in departmental stores comes out to be greater than that of middle aged population. This poses a serious question mark over author's reasoning.
Secondly, the author gives no evidence to show that the younger population will change its preferences after moving to middle-age. Without this evidence, it can be assumed that if they do not change their spending habits then neither the sales of departmental stores will increase nor the market for products for middle aged customers.
Finally, because of the reasons mentioned above, I am not at all convinced by the argument. The argument can be made better reasoned by providing average retail expenditure of both age groups. Information showing that when people age they change their shopping preferences will also be beneficial for the argument.
The following appeared in the opinion column of a financial magazine:
“On average, middle-aged consumers devote 39 percent of their retail expenditure to department store products and services, while for younger consumers the average is only 25 percent. Since the number of middle-aged people will increase dramatically within the next decade, department stores can expect retail sales to increase significantly during that period. Furthermore, to take advantage of the trend, these stores should begin to replace some of those products intended to attract the younger consumer with products intended to attract the middle-aged consumer.”
Discuss how well reasoned . . . etc.
The author predicts that the retail sales in departmental store will increase dramatically over the next decade. Therefore he encourages the departmental stores to replace the products for younger population with those for middle aged people. The author's predictions are based on the evidence that middle aged population is the primary customer for departmental stores since they spend 39% of their retail expenditure in departmental stores as compared to 29% by younger population. I am not convinced with the argument.
Firstly, the argument doesn't compare the actual spending of middle aged population to that of younger population. It may be that the younger population spends more than middle aged population. Hence the total expenditure by younger population in departmental stores comes out to be greater than that of middle aged population. This poses a serious question mark over author's reasoning.
Secondly, the author gives no evidence to show that the younger population will change its preferences after moving to middle-age. Without this evidence, it can be assumed that if they do not change their spending habits then neither the sales of departmental stores will increase nor the market for products for middle aged customers.
Finally, because of the reasons mentioned above, I am not at all convinced by the argument. The argument can be made better reasoned by providing average retail expenditure of both age groups. Information showing that when people age they change their shopping preferences will also be beneficial for the argument.
