Q4
In an attempt to increase in the competing demand of newspaper, price needs to be cheap as The Bugle did. With a period of time, The Mercury can improve their circulation to capture the market relevantly by their strategy to attract business sector.
This argument is unconvincing because of two questionable assumption made by The Mercury as evidence to support its conclusion.
The first assumption as the author cites is “The Bugle” newspaper which was started five years ago and declined “Mercury” newspaper by 10,000 readers because of its lower-price strategy. I highly doubt this statement as within the period of 5 years, they might have experienced with lot of internal factors within an organization and external uncontrollable factors which could possibly remove their barriers.
For example: area coverage by the Mercury newspaper might not have targeted as business categorized people but service working populace. As a result, loyalty towards the newspaper is shifted.
The second assumption as the author cites is in order to survive in a market they needs to lower their price below that of The Bugle newspaper, at least until circulation increases at former levels. The increased circulation of The Mercury will attract more businesses to buy advertising space in the newspaper. Here, price as a cause is highly refutable to the effect of increase in circulation of their newspaper because price may not be the only reason of their failure to attract reader.
For example: Content of the newspaper may not be up to the mark of the price paid by the customer .Also they can recheck the source of the news is reliable and most appropriate to public at large.
Moreover, Readers should find it attractive to read newspaper which will further increases the brand loyalty towards the brand. Circulation in demand is not only loaded on writings of newspaper. Nevertheless, Demographic factors like -age group of people, gender etc. also matters.
In inferences, if the author had mentioned all the relevant facts that are essential to objectively assess the situation under consideration, the argument would have been much stronger. In order to assess the merits of a certain situation it is essential to have full knowledge of all contributing factors. Without this information, the argument remains unsubstantiated and open to debate
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