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AA #9, which style is better?
Hi, I wrote two versions for AA#9 at different time, but I'm having a hard time determining which version is better. Version 1 is shorter, version 2 is a little long-winded. Which one do you like? Which has better style for AWA, and which could earn higher score? Any comments? Thanks!
VERSION 1
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The author argues that department store sales will increase significantly over the next ten years because, middle-aged consumers spend a higher percentage of their retail expenditure than younger consumers (39% versus 25%), and the number of middle-aged people will increase dramatically over the next decade. The author additionally argues that stores should take advantage of this trend by carrying more products aimed at middle-aged customers. This argument has several serious flaws.
First, the argument assumes that a higher percentage of retail expenditure equals to a bigger amount of retail dollars spent. However, without knowing the average size of the retail expenditures for both middle-aged consumers and younger consumers, this assumption is questionable.
Second, the argument assumes that other age groups will remain relatively constant over the next decade, so the increase in middle-aged people will automatically translate into an increase in sales. However, there is no information given on the projected population change of other age groups. For example, if the expected increase in the number of middle-aged people is offset by an equally significant decrease in the number of younger people, there would be little or no net gain in sales.
Third, the argument assumes that the spending pattern of each age groups remain relatively stable over time. This errs because it does not acknowledge that the current younger generation consists of a different population cohort, which may not favor department stores. Indeed, this generation may favor stores such as GAP, which became prominent in the 1980's. Thus, the younger generation's preference for non-department store retailers may be a generational phenomenon rather than an age-related issue. And as the current younger generation comes out of age, the spending pattern of the age groups may shift as well.
The argument's suggestion that department store's inventories should be changed to cater to the tastes of middle-aged customers is also problematic. The younger population, although preferring non-department stores, may be growing at a faster rate than the middle-aged consumers, or has more spending power than the middle-aged consumers, therefore they may represent a more attractive market segment. Without detailed market segment analysis, the author's suggestion may not results in better overall sales for the department store.
In sum, this argument is not strong as it currently stands. The author needs to provide more information and more analysis about the spending power, the growth rate and the tastes of the different age groups, both the middle-aged and the younger ones, to make the argument more convincing.
VERSION 2
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The author's argument that based on certain demographic trend and current shopping patterns of different age groups, department store retail sales will increase significantly within the next decade and stores should replace some of the products targeting your consumers with those targeting middle-aged consumers is not convincing, because it suffers from the following flaws.
First, the author assumes that on average middle-aged consumers spend more at department stores than younger consumers do, because middle-aged consumers spend 39% of their retail expenditure at department stores, comparing to younger consumers' 25%. But this assumption is not necessarily true. Since all we know is the average percentage of retail expenditure spent at department stores, we don't know how big the actual retail expenditures are for middle-aged and younger consumers, it could be the case that younger consumers have a much bigger retail expenditure, thus although they spend a smaller percentage at department stores, they actually spend more dollars per person there. If so, the whole argument is thrown into question.
Second, even assuming that current middle-aged consumers spend more dollars per person than younger consumers, we don't know whether this pattern could still hold true during the next decade. Since the current younger people grow up in the retail environment of the discount stores such as Wal-Mart, specialty stores like Gaps, and online stores such as Amazon, when they age and enter the middle-aged category, their shopping preference could very well differ from that of today's middle-aged consumers. So, it's hard to predict with certainty the shopping patterns of future consumers.
Third, even granting that the future middle-aged consumers will indeed continue to spend more at department stores, it's still uncertain that department stores will see significant sales increase simply because the number of middle-aged people will increase dramatically over the next decade. For instance, the number of people in other age groups could decrease even more dramatically, offset any sales gains from the middle-aged group, thus flat or even drag down the overall department store retail sales.
Finally, the author's suggestion that department stores replace goods targeting younger consumers with goods targeting middle-aged consumers is also questionable, even assuming that future middle-aged consumers will indeed spend more than younger consumers at department stores. It could be that because younger consumers are more likely to buy fashionable items, sales to them carry a much bigger profit margin and are more profitable. Or the number of younger consumers could also increase dramatically thus making the younger consumers a market segment the stores can not afford to under-serve. Without a detailed market segment analysis considering or ruling out all these possibilities, the author's suggestion is dubious at best.
In the final analysis, because of the above flaws, the argument is not a convincing one. To strength the argument, the author would have to provide evidence that middle-aged consumers indeed spend more dollars per person than younger consumers at department stores, the current spending patterns will continue to the next decade, demographic trends in other non-middle-aged groups will not offset the increased sales to middle-aged people, and thorough market segment analysis supports the suggestion to targeting more towards middle-aged consumers than younger ones.
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