The following appeared in a memo from the vice president of marketing at Dura-Sock, Inc.
“A recent study of our customers suggests that our company is wasting the money it spends on its patented Endure manufacturing process, which ensures that our socks are strong enough to last for two years. We have always advertised our use of the Endure process, but the new study shows that despite our socks’ durability, our average customer actually purchases new Dura-Socks every three months. Furthermore, our customers surveyed in our largest market, northeastern United States cities, say that they most value Dura-Socks’ stylish appearance and availability in many colors. These findings suggest that we can increase our profits by discontinuing use of the Endure manufacturing process.”
Write a response in which you discuss what specific evidence is needed to evaluate the argument and explain how the evidence would weaken or strengthen the argument.
The vice president of marketing at Dura-Sock, Inc has made a straightforward but dangerous assumption in her conclusion that Dura-Sock should discontinue its two-year guarantee. The assumption is that the Dura-Sock Company’s customers do not value the company’s durability.
The study that Dura-Sock cites is of limited value in determining whether or not Dura-Sock should discontinue its two-year guarantee. First, the Dura-Sock Company does not know how many customers are buying new socks every three months. The vice president of marketing has no way of knowing if the customers in the study are buying new socks every three months or, alternatively, replacing their socks after six months or a year. Even if Dura-Sock could track this information, it would be difficult to determine which customers are buying new socks and how many are replacing their socks. Second, the study does not distinguish between the northeastern United States and Dura-Sock’s other market areas. If the customers are buying new socks in the Northeast, then the Dura-Sock Company should consider discontinuing its two-year guarantee in the Northeast. If the customers are replacing their socks in other regions, then the Dura-Sock Company should reconsider discontinuing its two-year guarantee.
The Dura-Sock Company has other resources that can help it determine the long-term value of Endure. The Dura-Sock Company should conduct a survey among its customers. The survey should ask the customers how durable the socks are, how long they wear each pair of socks before needing to replace them, and how often they purchase new socks. The Dura-Sock Company should compare the survey results with the number of socks that customers wear. If the customers wear socks for an average of six months, then Dura-Sock should discontinue its two-year guarantee. If customers wear their socks for an average of two years before needing to replace them, then Dura-Sock should continue to offer the two-year guarantee. If the customers wear their socks for an average of three years, then the Dura-Sock Company should offer the two-year guarantee. Lastly, the Dura-Sock Company should conduct a survey among its customers to determine their preferences. For example, the Dura-Sock Company could ask its customers which colors they prefer. If customers prefer light colors, then the Dura-Sock Company should discontinue Endure. If customers prefer dark colors, then the Dura-Sock Company should continue to offer Endure. The Dura-Sock Company could provide customers with a range of colors, including light, medium and dark, and then ask customers which color they prefer. If the Dura-Sock Company conducts this survey, then it would learn which colors its customers prefer. If the Dura-Sock Company offers both colors, then customers would have a choice of which color they prefer. The Dura-Sock Company could also ask its customers if they prefer athletic or casual socks. If customers prefer athletic socks, then the Dura-Sock Company should discontinue Endure. If customers prefer casual socks, then the Dura-Sock Company should continue to offer Endure.
The Dura-Sock Company could conduct these studies itself or it could hire outside consultants to conduct the study. If the Dura-Sock Company conducts the survey itself, then it could gain insights about its customers that it would not receive if it had an outside consultant. The Dura-Sock Company would know more about its customers, which would make it easier for the Dura-Sock Company to determine which customers should receive a two-year guarantee and which customers should receive a one-year guarantee. If the Dura-Sock Company conducts the study with an outside consultant, then it would not know whether the consultant was biased. The Dura-Sock Company should conduct the survey on its own. The Dura-Sock Company should also conduct the survey on a regular basis, perhaps every year. The Dura-Sock Company would not want to discontinue its two-year guarantee based on old information.
The Dura-Sock Company should use all available resources to determine whether Dura-Sock should discontinue its two-year guarantee. An outside consultant could create problems for the Dura-Sock Company. For example, the consultant could recommend discontinuing the two-year guarantee. The Dura-Sock Company should conduct its own study, including a survey among its customers. The Dura-Sock Company should use its resources to determine which customers should receive two-year guarantees and which customers should receive one-year guarantees. The Dura-Sock Company would be wise to retain its two-year guarantee in the Northeast, where customers value durability, and discontinue the guarantee in other regions, where customers value appearance and availability.