Final answer:
Sam's argument is an example of the False Cause fallacy because it incorrectly assumes a direct cause-and-effect relationship between XY Products' larger market share and its higher marketing expenditure, without considering other factors. Option d.
Step-by-step explanation:
The argument made by Sam, the marketing manager at ABC Products, contains a logical fallacy known as False Cause. Sam suggests that because their biggest competitor, XY Products, has a larger market share and spends more on marketing, ABC should also spend more on marketing to increase their own market share.
This implies that the larger market share is directly caused by the higher marketing expenditure without considering other possible variables that might contribute to XY's success.
It is important to note that an increase in advertising expenditure does not intrinsically result in a greater market share; there could be various other factors at play such as brand loyalty, product quality, or customer service.
Additionally, increased competition in advertising could result in a scenario where the efforts made by one firm simply neutralize the efforts of another, leaving the market position unchanged. Option d.