TOPIC: ARGUMENT219 - The following appeared in a memorandum from a vice president of the Megamart department store chain.
"For the third year in a row, the average household income in our country has risen significantly. That prosperity means that families are likely to be spending more time and money on leisure activities. Megamart stores should therefore concentrate on enlarging and promoting its line of products typically used in leisure activities: athletic and outdoor equipment, televisions, gourmet cooking equipment, and luggage and travel accessories."
WORDS: 425
TIME: 00:30
DATE: 6/17/2010 4:37:15 PM
The vice president of the Megamart department proposes that Megamart stores should increase the line of products especially products used in leisure activities.
To support his proposal, he pointed out that people are more likely to spend more time and money on leisure activities because the income in our country has risen significantly. He also points out that the products that the Megamart stores should increase are those used in leisure activities. There are several logic flaws in this statement.
First of all, is it true that the average household income has risen for the third year in a row? Or is it just the inflationary? Since the vice president did not give us any evidence to prove it, it possible that the increase of the average household increase due to inflationary, which means that the increase of the income accompanied by the increased price of commodities. In this case, nothing has changed; families still do not have more extra money to spend on leisure activity products.
Also, the average household income in our country may stop increase or even decrease in the following years despite it has been increased for the third year in a row. Since, the vice president do not provide us with the evidence to prove that the household income will keep increasing in the following years, is it too arbitrary to claim that Megamart stores should increase their products.
Moreover, the increase of average household income are not necessarily promote the sales of Megamart stores' products because if the increase of the income is accompanied by the increased workload and longer work hours, they won’t have time to enjoy leisure activities at all.
Furthermore, the vice president failed to take the market completion into account. If there are many completers in the market which are much stronger than Megamart stores, the sales of Megamart stores may not increase at all even if people consume more products used in leisure activities.
In sum, the vice president disregarded the trend of the average household income in the following years, the relationship between the increase and the sales of the products as well as the market completion, it is hard for us to believe that it is reasonable to increase the line of products used in leisure activities due to the increase of the average household income. In order to convince us, he should provide evidence to show that the increase of the income actually will increase the sales of the products, and the Megamart stores have strong competitive capacity in the market.