significantly over the next ten years. To bolster this prediction, the author cites statistics
showing that middle-aged people devote a much higher percentage of their retail
expenditure to department-store services and products than younger consumers do.
Since the number of middle-aged consumers is on the rise and since they spend more
than younger people on department-store goods and services, the author further
recommends that department stores begin to adjust their inventories to capitalize on this
trend. Specifically, it is recommended that department stores increase their inventory of
products aimed at middle-aged consumers and decrease their inventory, of products
aimed at younger consumers. This argument is problematic for two reasons.
First, an increase in the number of middle-aged people does not necessarily
portend an overall increase in department-store sales. It does so only on the assumption
that other population groups will remain relatively constant. For example, if the
expected increase in the number of middle-aged people is offset by an equally
significant decrease in the number of younger people, there will be little or no net gain
in sales.
Second, in recommending that department stores replace products intended to
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