Question : Over 75% of households in Parksboro have Jacuzzi bathtubs. In addition, the average family income in Parksboro is 50% higher than the national average, and a local store reports record-high sales of most costly brands of hair and body care products.With so much being spent on personal care, Parksboro will be a profitable location for a new Luxe spa-a salon that offers premium services at prices that are above average.
Discuss how well reasoned you find this argument.
The author concludes that Over 75% of households in Parksboro have Jacuzzi bathtubs, because the average family income in Parksboro is 50% higher than the national average. The author's line of reasoning is that as the local store reports record-high sales of the most costly brands of hair and body care products, much money is being spent on personal care and therefore Parksboro will be a profitable location for a new luxury spa. This argument is unconvincing for several reasons; it is offering premium services at prices that are above average and it uses the sales of high-end personal products to infer that a new luxury spa will be profitable.
First of all, the sales of costly brands is bought by consumers for their personal use at home, the same products will not be used by the spa offering premium services, that prices will be above average targeting only the high end consumers rather than targeting the average family consumers and thus there will be no motivation for the consumers to visit the new spa, however consumers might give a try to see the services being offered.. Moreover, as the rates that will be charged isn't for the same quality of products expected by the customers, the clients would have a negative view and thus neither will return to the spa nor will they spread good reviews to their family or friends.
Secondly, the author assumes that as the average family income in Parksboro is 50% higher than the national average, the people in Parksboro will be willing to spend that extra money to go to a salon offering premium services and pay above average prices for their services. However, statistics show that the savings and investment in assets of the citizens of Parksboro is 40% higher than the national average. It seems equally reasonable to assume that the though the average income is higher it has been balanced with a higher rate of investments. Thus, the people of Parksboro though like luxury by investing higher in personal care prefer to have that luxury at their home rather than spending it at a premium spa.
Finally, the people at Parksboro spend much time at their home and prefer not going out due to climatic conditions. The author fails to consider the high temperature and humidity conditions that is experienced. For example in Qatar, the reason that people have Jacuzzi bathtubs at the convenience of their home and also spend more on costly brands of hair and body care products so that they can be used at home as they are unwilling to go out due to the heat, which is similar to the case as faced by people in Parksboro. Because such reasons have not been considered the author's argument is flawed.
In sum, I agree that the county is totally under surveillance of air-conditioners at home, in the car, at parking lots and also at each store, and therefore this could be a good line of reasoning by the regional manager of Luxe Spa. However, the people at Parksboro do not like going out much of their home; on balance the premium services offered with standard products at a premium rate will not be welcomed by the people of Parksboro.
Discuss how well reasoned you find this argument.
The author concludes that Over 75% of households in Parksboro have Jacuzzi bathtubs, because the average family income in Parksboro is 50% higher than the national average. The author's line of reasoning is that as the local store reports record-high sales of the most costly brands of hair and body care products, much money is being spent on personal care and therefore Parksboro will be a profitable location for a new luxury spa. This argument is unconvincing for several reasons; it is offering premium services at prices that are above average and it uses the sales of high-end personal products to infer that a new luxury spa will be profitable.
First of all, the sales of costly brands is bought by consumers for their personal use at home, the same products will not be used by the spa offering premium services, that prices will be above average targeting only the high end consumers rather than targeting the average family consumers and thus there will be no motivation for the consumers to visit the new spa, however consumers might give a try to see the services being offered.. Moreover, as the rates that will be charged isn't for the same quality of products expected by the customers, the clients would have a negative view and thus neither will return to the spa nor will they spread good reviews to their family or friends.
Secondly, the author assumes that as the average family income in Parksboro is 50% higher than the national average, the people in Parksboro will be willing to spend that extra money to go to a salon offering premium services and pay above average prices for their services. However, statistics show that the savings and investment in assets of the citizens of Parksboro is 40% higher than the national average. It seems equally reasonable to assume that the though the average income is higher it has been balanced with a higher rate of investments. Thus, the people of Parksboro though like luxury by investing higher in personal care prefer to have that luxury at their home rather than spending it at a premium spa.
Finally, the people at Parksboro spend much time at their home and prefer not going out due to climatic conditions. The author fails to consider the high temperature and humidity conditions that is experienced. For example in Qatar, the reason that people have Jacuzzi bathtubs at the convenience of their home and also spend more on costly brands of hair and body care products so that they can be used at home as they are unwilling to go out due to the heat, which is similar to the case as faced by people in Parksboro. Because such reasons have not been considered the author's argument is flawed.
In sum, I agree that the county is totally under surveillance of air-conditioners at home, in the car, at parking lots and also at each store, and therefore this could be a good line of reasoning by the regional manager of Luxe Spa. However, the people at Parksboro do not like going out much of their home; on balance the premium services offered with standard products at a premium rate will not be welcomed by the people of Parksboro.
