The following appeared in a memo from the president of Bower Builders, a company that constructs new homes.
“A nationwide survey reveals that the two most-desired home features are a large family room and a large, well-appointed kitchen. A number of homes in our area built by our competitor Domus Construction have such features and have sold much faster and at significantly higher prices than the national average. To boost sales and profits, we should increase the size of the family rooms and kitchens in all the homes we build and should make state-of-the-art kitchens a standard feature. Moreover, our larger family rooms and kitchens can come at the expense of the dining room, since many of our recent buyers say they do not need a separate dining room for family meals.”
Write a response in which you examine the stated and/or unstated assumptions of the argument. Be sure to explain how the argument depends on these assumptions and what the implications are for the argument if the assumptions prove unwarranted.
The memo from Bower Builders president Al Osborne may seem jocular on the surface, but the underlying facts presented may reveal a dangerous attitude about the role of consumers. The memo points to a competitor’s willingness to incorporate popular features into homes, suggesting that their superior sales are due to the incorporation of these features in homes built by Domus Construction. However, the memo fails to make any direct comparisons about the features present in the homes built by both builders, leaving it unclear how large the rooms are and what amenities they contain. Furthermore, it assumes that larger rooms will sell homes faster and at higher prices, without offering any hard data to support this assumption. In addition, the memo suggests that Domus Construction’s lack of a separate dining room is somehow an oversight, even if consumers have indicated otherwise. Al Osborne’s arguments imply that he does not understand the needs and desires of consumers, which is a dangerous assumption, especially for a builder.
Regarding the size of the family room and kitchen, the memo states that Domus Construction builds homes with family rooms and kitchens that are ‘significantly larger’ than those built by Bower Builders. However, there is no data presented regarding the size of the rooms or kitchens. Furthermore, the memo does not specify how large the rooms are or how much space they take up. Without this information, it is virtually impossible to compare the amount of space available and determine what size of room will best satisfy consumer demand. The memo does state that the rooms built by Domus Construction are only slightly larger than those built by Bower Builders, but this could possibly be due to the difference in the quality of construction. Perhaps Domus Construction uses less expensive building materials, which results in smaller rooms. Or, as is likely the case, Domus Construction uses smaller rooms than Bower Builders, but uses more expensive materials to disguise this fact. Regardless, the memo fails to provide any real data to back up its claim that Domus Construction has larger rooms, and therefore fails to offer any valid justification for increasing the size of the rooms that Bower Builders build.
On the issue of kitchens, the memo states that Domus Construction builds kitchens that incorporate ‘state-of-the-art’ features, such as granite countertops, stainless steel appliances, and hardwood floors. This may very well be the case, but the memo does not inform the reader of the features present in the kitchens. Furthermore, the memo does not describe the kitchens built by Bower Builders, which leaves the reader to conclude that the kitchens built by Domus Construction are superior to those built by Bower Builders. Since the memo makes no comparisons, it is impossible to determine what features consumers actually prefer. Finally, the memo indicates that Domus Construction’s kitchens come at the expense of the dining room, even though Bower Builders has failed to offer a separate dining room in its homes. Without this information, it is impossible to determine what consumers want from a dining room, and whether a separate dining room is a high priority for them. For all of these reasons, the memo offers no valid justification for any change. Even if Domus Construction builds larger rooms, consumers may still want a separate dining room. Furthermore, consumers may have a preference for smaller rooms, or may not care which rooms larger, more luxurious features are located in. For these reasons, Al Osborne cannot simply assume that consumers want larger and more luxurious features, because consumers may not want them. If he does not understand consumers, he risks alienating them, which will only lead to a decrease in sales, not an increase.
The memo from Al Osborne uses a veneer of humor to suggest that Domus Construction’s superior sales are due to the construction of larger rooms, and that Bower Builders should build rooms of the same size and incorporate the same features. However, the memo does not back up its claims with any hard data, nor does it evaluate any alternatives. In fact, the memo does not even attempt to address the concerns of consumers, and instead assumes that consumers want larger rooms, larger kitchens, and a separate dining room. The memo’s lack of insight and reasoning is alarming, even if Al Osborne’s sense of humor is appealing. It is not sufficient for the president of a builder to simply accept what his competition is doing, and then copy this action without understanding consumers. He must spend time researching the needs and desires of consumers, and then reevaluate his decision-making process.