souvik101990 wrote:
Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success. But announcing new technology too soon after the introduction of a successful device can backfire. Once consumers hear about the new device, they may stop buying the one currently on sale. So, if a company wishes to announce the upcoming sale of a new device, it should wait until purchases of the old device have begun to decline.
Which of the following, if true, would best support the analyst’s main assertion?
A. New technology often becomes less expensive after an initial surge in sales.
B. Media outlets, such as television programs and magazines, often report on the planned introduction of new devices while the sales of old devices are still strong.
C. Many consumers are unable to determine whether new technology is superior to current technology.
D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
E. Consumers tend to be loyal to technology companies whose products they enjoy using.
Premises:
Tech development brings new devices and many of them enjoy commercial success.
But if consumers hear about the new device, they may stop buying the one successfully currently on sale.
Conclusion: If
a company wishes to announce the upcoming sale of a new device,
it should wait until purchases of the old device have begun to decline.
Conclusion is about the company not announcing the new device.
A. New technology often becomes less expensive after an initial surge in sales.
How does the reduction in price affect the company, we don't know. Do the revenues increase because more people buy cheaper product or is it better to introduce new product at this time to have better revenues later (if people defer buying now), we don't know. So we cannot say whether its good for the company to announce or not announce the new tech.
B. Media outlets, such as television programs and magazines, often report on the planned introduction of new devices while the sales of old devices are still strong.
This is a reason why companies should not announce a new product while sale of old ones is still strong. The media houses will report about the new product to the public while the sales of old devices are still strong and people may stop buying. It strengthens our conclusion that the company should not announce new tech too soon.
C. Many consumers are unable to determine whether new technology is superior to current technology.
We just know that consumers often hold on for new tech. Why they do that is irrelevant. If they are unable to determine the superiority, it is probably not because of quality that they defer their purchase. In any case, it doesn't impact our conclusion that companies should not announce new products too soon.
D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
This just says that there are all kind of consumers - frequent buyers as well as seldom buyers. This doesn't impact our conclusion.
E. Consumers tend to be loyal to technology companies whose products they enjoy using.
Again, just goes to show that companies have their loyalists. This doesn't impact our conclusion.