PLEASE EVALUATE 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.
RESPONSE:
In this argument, the author recommends the retail stores to replace some of those products intended to attract the younger consumer with products intended to attract the middle-aged consumer. He mentions that the percentage retail spending of middle aged customers and expected increase in their numbers as the principal reasons for his recommendations. Though, this argument looks good in the general sense, its line of reasoning and underlying assumptions need close examination.
Firstly, the author bases his recommendation on the premise that the middle-aged consumers devote 39 percent of their retail expenditure to department store products and services, whereas younger customers devote only 25 percent. But he does not provide any demographic data to strengthen his conclusion. He overlooks the possibility that the percentage of younger customers far exceeds the percentage of middle aged customers. If this be the case, the revenues from younger customers exceed those of middle aged customers. The author should provide the demographic data to help the reader evaluate the argument better.
Secondly, the retailers consider profit margins while evaluating whether to keep or drop a product. If the profit margins of the products and services used by younger customers are higher, the retailers may not drop those products. The author must provide the average profit margins and revenues for products in both the categories to evaluate his recommendation.
Thirdly, the author assumes that increase in number of middle aged customers will automatically lead to the increase in the percentage. This assumption is unwarranted and is not supported by any data in the argument. Finally, the author fails to consider the option of increasing the number of products and services to middle aged customers without replacing some products intended to attract the younger customers.
In conclusion, the argument is weak. To strengthen the argument, the author must provide the demographics of customers, revenues and profit margins for each of the mentioned product categories.
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.
RESPONSE:
In this argument, the author recommends the retail stores to replace some of those products intended to attract the younger consumer with products intended to attract the middle-aged consumer. He mentions that the percentage retail spending of middle aged customers and expected increase in their numbers as the principal reasons for his recommendations. Though, this argument looks good in the general sense, its line of reasoning and underlying assumptions need close examination.
Firstly, the author bases his recommendation on the premise that the middle-aged consumers devote 39 percent of their retail expenditure to department store products and services, whereas younger customers devote only 25 percent. But he does not provide any demographic data to strengthen his conclusion. He overlooks the possibility that the percentage of younger customers far exceeds the percentage of middle aged customers. If this be the case, the revenues from younger customers exceed those of middle aged customers. The author should provide the demographic data to help the reader evaluate the argument better.
Secondly, the retailers consider profit margins while evaluating whether to keep or drop a product. If the profit margins of the products and services used by younger customers are higher, the retailers may not drop those products. The author must provide the average profit margins and revenues for products in both the categories to evaluate his recommendation.
Thirdly, the author assumes that increase in number of middle aged customers will automatically lead to the increase in the percentage. This assumption is unwarranted and is not supported by any data in the argument. Finally, the author fails to consider the option of increasing the number of products and services to middle aged customers without replacing some products intended to attract the younger customers.
In conclusion, the argument is weak. To strengthen the argument, the author must provide the demographics of customers, revenues and profit margins for each of the mentioned product categories.
