essay - GMAT: Argument 35

The following appeared as part of a plan proposed by an executive of the Easy Credit Company to the president:

The Easy Credit Company would gain an advantage over competing credit card services if we were to donate a portion of the proceeds from the use of our cards to a well-known environmental organization in exchange for the use of its symbol or logo on our card. Since a recent poll shows that a large percentage of the public is concerned about environmental issues, this policy would attract new customers, increase use among existing customers, and enable us to charge interest rates that are higher than the lowest ones available.

Discuss how well reasoned . . . etc.

Answer:
The author, one of executives of the Easy Credit Company, proposes that the company donate a certain portion of its profits to a well-known environmental organization in order to boost its sales. His logic is that if the company were to put the organization's logo mark on the company's credit card, it would be able to increase the sales through attracting new customers and making current customers use their credit cards more. The assumption on which he bases his argument is that a phenomenon that people highly worry about environmental issues was observed in a survey, and thereby they would be attracted by his new marketing strategy. His reasoning, however, has a serious flaw, and consequently his proposal would not be accepted by the president.

The flaw is that he fails to reasonably connect the increase of credit card usage with people's awareness toward environment. As the poll that he cites says, people certainly become more conscious to environmental matters. More and more people use their own shopping bags instead of plastic bags that they can get at stores for free. More and more people are about choosing fuel-efficient vehicles rather than heavy and sizable SUVs that hugely consume oil and emit green gas. However, all merchandises or services can not necessarily harness this trend. Admittedly, famous organization's logo mark on a credit card might attract a few people, but it can be considered that most of consumers don't pay any attention on how their credit card company donates some portion of its profits to an environment organization. Therefore, his reasoning is too weak to make it convincing.

To strengthen the argument, the author needs to show clear evidence that supports his conclusion. It might be a customer awareness survey or a case study of the other company that adapted the similar strategy. In doing so, his argument becomes convincing, and he will be a position of persuading the president.

In conclusion, although his proposal might attract a little bunch of consumers who strongly have environmental concern, since it fails to show any apparent link between a logo mark of environmental organization on the credit card to a sales increase, his argument is weak.