The following appeared in a memo to the board of directors of Bargain Brand Cereals."One year ago we introduced our first product, Bargain Brand breakfast cereal. Our very low prices quickly drew many customers away from the top-selling cereal companies.

The author make the recommendation that Bargain Brand now expand its business and begin marketing other low-priced food as quickly as possible. Which is on the assumption that the low-priced food will be compelling and will make a profit as well because of the success of the cereal. But it is conspicuously doubtable evidence that which can not make the assumption tenable.

The first loophole I want to refer to is that the author claim that the low price of the Bargain Brand breakfast cereal draw many customers' attention away from the top-selling companies. Admittedly, that the issue of price will play an important role in the willing of the consumer to consider whether or not to buy. However it is obviously not the only case which is attractive for the people. For example, the quality of the product and the time of producing are also vital. To Such food stuff people should take into account first is not the price but the quality. If the food is contanminated, though it is cheap and even for free, may anyone take it? Absolutely not, because nobody wants to take the risk of being sick. So the real reason that whether it is the price attracts people's attention is uncertain. So in this case, we should collect more detailed information about the consumers to make sure that this recommendation is benefit to other food.

The second question is also cannot be ignored. The author mentinoned that though the best-selling companies producing the top brands have since tried to compete with them by lowering their price and although several plans to promote their own budget brands, they still need not to raise the price in order to make a profit. Which the annotation is that this low-priced is ever hardly beated. But how the best- selling introdice their products is still unknown. Furthermore, many things may occur in the best-selling companies that make a possibility that the plans themselves have nothing to do with the low-priced cereal. It is highly possible that other companies have changed their focus on other products as clothes and all plans are to increase the celebrant of the new products. And only if they return to the food domain, the low-priced food may face a serious impact. On the other hand, the author said that "not once they should raise prices to continuing make a profit." Yet there is no denying that it may occur that the low-priced cereal has already make no profits now to sustain the priority of the low price. Under these situations, we cannot ensure that the low-price is a good idea without the possibility remained exist.

In sum, the author should give more comprehensive information in order to make the recommendation more reasonable.