LSAT 105 | Section 1 | Logical Reasoning: Q5

LR Question 5 Explanation

QUESTION TEXT: Large discount chains can make a profit even while …

QUESTION TYPE: Flawed Reasoning

CONCLUSION: Small retailers that compete with big discount chains must offer exceptional service to retain profitability.

REASONING:

1. Big discount chains can profit despite low prices because they buy in bulk.
2. If small retailers lower prices to match, their profit margins shrink.
3. However, they can retain customers without lowering prices by offering exceptional service.

ANALYSIS: The reasoning offers an alternative to lowering prices that will allow small retailers to retain customers. But then the argument concludes they HAVE to do this. Why?

Exceptional service is presented as a way to retain customers. It doesn’t logically follow to conclude that small retailers must do this.

This would be like saying: “You can build muscle if you take steroids. So to build muscle, you must take steroids.” That’s ridiculous.

So the flaw is that the argument illogically concludes that exceptional service is the only way to retain customers.

___________

1. The profitability of different large discount chains is irrelevant to whether small retailers have alternative ways to remain profitable.
2. We’re not interested in the comparative profit margins here. This does nothing to address the claim that small retailers must offer exceptional service.
3. Even if small retailers have other motivations than profit, this argument is about retaining customers and thus profit, not other motivations.
4. That’s great. But the argument specifically addresses the ones that do compete with big discount chains.
5. CORRECT. The argument assumes exceptional service is the only way for small retailers to retain customers (i.e. the only reason customers prefer the small retailers). But there could be many other ways.