Hi
This was my first try on AWA , please rate and tell me how can i improve.
Question
"Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company's profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm."
Answer
The argument states that because of the promotional price reductions on energy drinks have lead to a dramatic increase in sales and that consumer surveys indicate that this promotion was favorably received by the majority of our customers.Then it suggests,in order to improve company's profitability and enhance its perception,that similar price reductions should be offered on all drinks produced by the firm.
The major flaw in the arguments is that it readily assumes that the dramatic increase in the sales is a direct result of the promotional price reductions.Just because one event preceded another,doesn't necessarily means that the first even caused the second event.There could be many other reasons that could have caused the second event to occur.There could be other factors present that could have lead to the increase in sales of energy drinks,for example,if the quality of energy drinks sold by the company improved,and it is just as likely to increase sales as is a reduction in price.Without any evidence that indicate that the said price reductions directly led to increase in sales,the argument is flawed.
Secondly,the argument assumes that an increase in sales always means higher profit.Reduction in prices lead to lower revenues per unit sale,so it is possible that the increased sales didn't have an effect on profits whatsoever,it is even possible that the profits from sales of energy drinks reduced.So it is unreasonable to assume that sales and profits always go hand in hand.
Lastly,the argument unreasonably assumes that if some strategy worked for one product,it will work for every other product.Markets for different products are different,hence each product has different consumers with different taste and preferences.So this strategy is unlikely to be successful,unless some evidence suggesting otherwise is presented.
In conclusion,the argument is flawed in many ways,as it assumes some things unreasonably.The arguments can be strengthened if some facts and evidence are provided that support those assumptions.
This was my first try on AWA , please rate and tell me how can i improve.
Question
"Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company's profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm."
Answer
The argument states that because of the promotional price reductions on energy drinks have lead to a dramatic increase in sales and that consumer surveys indicate that this promotion was favorably received by the majority of our customers.Then it suggests,in order to improve company's profitability and enhance its perception,that similar price reductions should be offered on all drinks produced by the firm.
The major flaw in the arguments is that it readily assumes that the dramatic increase in the sales is a direct result of the promotional price reductions.Just because one event preceded another,doesn't necessarily means that the first even caused the second event.There could be many other reasons that could have caused the second event to occur.There could be other factors present that could have lead to the increase in sales of energy drinks,for example,if the quality of energy drinks sold by the company improved,and it is just as likely to increase sales as is a reduction in price.Without any evidence that indicate that the said price reductions directly led to increase in sales,the argument is flawed.
Secondly,the argument assumes that an increase in sales always means higher profit.Reduction in prices lead to lower revenues per unit sale,so it is possible that the increased sales didn't have an effect on profits whatsoever,it is even possible that the profits from sales of energy drinks reduced.So it is unreasonable to assume that sales and profits always go hand in hand.
Lastly,the argument unreasonably assumes that if some strategy worked for one product,it will work for every other product.Markets for different products are different,hence each product has different consumers with different taste and preferences.So this strategy is unlikely to be successful,unless some evidence suggesting otherwise is presented.
In conclusion,the argument is flawed in many ways,as it assumes some things unreasonably.The arguments can be strengthened if some facts and evidence are provided that support those assumptions.
