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68. The following appeared in a memorandum from a companys marketing department. Since our company started manufacturing and marketing a deluxe air filter six months ago, sales of our economy filter―and company profits―have decreased significantly. The deluxe air filter sells for 50 percent more than the economy filter, but the economy filter lasts for only one month while the deluxe filter can be used for two months before it must be replaced. To increase repeat sales of our economy filter and maximize profits, we should discontinue the deluxe air filter and concentrate all our advertising efforts on the economy filter. Discuss how well reasoned... etc. The companys marketing department recommends discontinuing a deluxe air filter and concentrating advertising efforts on an economy filter, which requires replacement more often than the deluxe model. This recommendation is based on reports showing that sales of economy filters, and company profits, have dropped significantly since the company began manufacturing and marketing the deluxe filter six months ago. The marketing departments argument is specious in three important respects. First, the marketing department assumes that if the company discontinues the new deluxe air filter, customers will resume buying its economy filter. This assumption may not be correct. Customers who prefer the deluxe model may do so because it requires replacement less often. Thus, instead of buying the companys economy filters again, these customers may just as likely turn to a competitor for a product similar to the deluxe model. In this event, the result would be lower profits. | 
