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.”

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 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.

(Dura-Sock, Inc.)’The document states, ‘A recent study of our customers suggests that our company is wasting the money it spends on its patented Endure manufacturing process.’ This statement is misleading; Dura-Sock, Inc. has not wasted ‘any money’ on Endure, but rather has chosen to reinvest that money into its product line. The company knows that its Endure process is not perfect, so it has invested heavily in research and development to improve it. Moreover, the company understands the value of its product to consumers, and it has not abandoned its efforts to perfect Endure. Instead, Dura-Sock, Inc. has modified its business model to accommodate the preferences of its customers.

In the statement, ‘despite our socks’ durability, our average customer actually purchases new Dura-Socks every three months,’ the Vice President of Marketing fails to realize that Dura-Sock, Inc. cannot please everyone. The newer, more fashionable styles of socks have undoubtedly captured part of the market share. Also, many customers may purchase a new pair of socks simply because they are tired of their old ones. The Vice President of Marketing is suggesting that the company abandon its Endure manufacturing process in favor of making more fashionable socks. However, if the Vice President of Marketing analyses the company’s financial data, he will realize that Dura-Sock, Inc. is already losing money on those socks, as customers continue to purchase them. Therefore, Dura-Sock, Inc. should invest more into research and development of Endure, rather than abandoning it altogether. Dura-Sock, Inc.’s customers understand that the company’s socks are durable, but they may prefer the fashionable new styles.

The Vice President of Marketing’s claim that ‘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.’ is confusing, as Dura-Sock, Inc. does not market its socks in northeastern United States cities. Dura-Sock, Inc. markets its socks in metropolitan areas throughout the United States. The company can easily produce four different colors of its Endure socks, but considers that to be an unnecessary expense. Dura-Sock, Inc. treats its Endure socks as commodities, and sells them primarily to retailers, who in turn sell them to consumers. Consumers do not care what color the socks are, as long as the company produces the socks in sufficient quantities.

Therefore, the Vice President of Marketing’s suggestion that Dura-Sock, Inc. discontinue its Endure manufacturing process is misguided. Dura-Sock, Inc. should focus its efforts on improving the Endure manufacturing process, rather than giving up on its efforts altogether.