QUESTION TYPE: Point at Issue
ARGUMENTS: Jean argues that a low cost model would allow increased sales and continued domination of the high-end market. She notes that the company’s low-end competitors sell more units.
Tracy disagrees. She thinks that a low-cost model would hurt the reputation of the high cost model, hurting overall sales.
ANALYSIS: Jean thinks this is a good idea all around. Tracy is worried about the high cost market. She thinks competitors will gain the upper hand and the company will no longer dominate that market.
- Neither of them mentions which market has more profit. Jean might think that high-cost has more profit.
- Tracy doesn’t think that consumers will buy the company’s low cost model instead of the high cost model. She thinks other high cost competitors will steal customers instead.
- Very tempting. But technically Jean didn’t say that the company could dominate the low cost market. And Tracy didn’t say how she thought the low cost product would sell.
- CORRECT. Jean clearly says that the company will continue to dominate high cost. Tracy thinks competitors will gain an advantage in high cost and sales will drop.
- Tracy doesn’t say how she thinks low cost sales will be.
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