medium · LSAT Logical Reasoning
A retail chain noticed that its stores in towns with populations under 10,000 had higher profit margins than its stores in larger cities. The CEO concluded that small-town consumers are more loyal to established brands than city-dwellers are.
The CEO's reasoning is most vulnerable to criticism on the grounds that it
- overlooks that lower operating costs in small towns could by themselves account for the higher profit margins
- presumes that the typical consumer in a larger city is not genuinely loyal to any established brand at all
- takes for granted that brand loyalty is the single most important driver of any retail store's overall success
- ignores that a number of the chain's individual stores in large cities are nonetheless highly profitable too
- assumes that profit margin alone is the only genuinely valid measure of a given retail store's performance
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