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Analyst: The pace of technological development brings

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Analyst: The pace of technological development brings [#permalink] New post 21 Mar 2012, 00:07
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Question Stats:

58% (02:19) correct 42% (03:14) wrong based on 282 sessions
Much thanks in advance:

Question:

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.


--------------------------------------


The answer is B.

I understand this is a strengthen the argument question. But I would think that because media outlets often report about new devices even if sales are going strong, then regardless if the company waits until sales of old technology has declined, the plan might still backfire because media outlets will have already posted about the new technology. That if anything weakens the argument to me.

Can someone explain why B is the right answer?

Thank you.
[Reveal] Spoiler: OA
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Re: Do not understand explanation for this question [#permalink] New post 21 Mar 2012, 01:07
Analyst: 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.
--> no talk of technology getting less or more expensive its just the decline or surge of sales, hence its out of scope.

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.
--> only relevant option strengthening that conclusion could stand because as per B the information is provided and hence the trend is observed

C. Many consumers are unable to determine whether new technology is superior to current technology.
--> it is irrelevant. even if one say its affecting then thats:weakening.

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
--> nature of purchases is out of scope

E. Consumers tend to be loyal to technology companies whose products they enjoy using.
-->okay its totally irrelevant
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Re: Do not understand explanation for this question [#permalink] New post 22 Mar 2012, 17:28
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.- Irrelevant

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.- As a result ppl hold purchase to wait it out for the new tech- Hence in support of given statement.

C. Many consumers are unable to determine whether new technology is superior to current technology.- irrelevant

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.- irrelevant

E. Consumers tend to be loyal to technology companies whose products they enjoy using.- irrelevant
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Re: Do not understand explanation for this question [#permalink] New post 26 May 2012, 02:14
If this was a conclusion question , B as an answer was justified, I don't see B strengthening the conclusion/main assertion.
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Re: Do not understand explanation for this question [#permalink] New post 15 Sep 2013, 09:04
mahtabmd wrote:
If this was a conclusion question , B as an answer was justified, I don't see B strengthening the conclusion/main assertion.



Its from MGMAT prep. But i still do not agree with OE. The argument said that the organizations should wait till the sales start to decline before announcing a newer model.

Option B says that the organizations should advertise when sales are still strong. How on earth does it strengthen the argument :?:

Any expert opinions for this one ?
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Re: Analyst: The pace of technological development brings [#permalink] New post 15 Sep 2013, 21:18
It's important to note that an assumption also works as a strengthener. Choice (B) is the assumption that the argument relies on.
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Re: Analyst: The pace of technological development brings [#permalink] New post 14 Oct 2013, 10:41
kellogs4toniee wrote:
Much thanks in advance:

Question:

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.


--------------------------------------


The answer is B.

I understand this is a strengthen the argument question. But I would think that because media outlets often report about new devices even if sales are going strong, then regardless if the company waits until sales of old technology has declined, the plan might still backfire because media outlets will have already posted about the new technology. That if anything weakens the argument to me.

Can someone explain why B is the right answer?

Thank you.


Hey all, just wanted to let you know I chose (E) for the following reason.
We are being told that if a tech company announces a product too son it can back fire because customers would stop buying the new product. Having said that, the author says that a better plan might be to wait until they decline.

Now after reading this, use your common sense. For example, think of an Apple or a Samsung, you name it.
Now, why do these guys don't follow this strategy? Why do they "canibalize" to some extent some of their old devices when they launch every year or so new devices constantly. Wouldn't it be better to let the demand start to decline to then throw a new Iphone or Galaxy and then boost their sales?

The reason why they do it, is because if they don't another competitor will and will take customers away from them. Ok ok, I understand that we should stick to the stimulus and not make real life inferences, but it makes sense doesn't it?

Let's analyze other answer choices shall we?

A. New technology often becomes less expensive after an initial surge in sales. Out of scope
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. Ok media outlets do it, but are tech companies similar to media outlets including television programs and magazines? We can't assume that

C. Many consumers are unable to determine whether new technology is superior to current technology. Hmm, let me think about this one for a minute. This in fact weakens it. If they are unaware then there is no reason to wait. They won't really care, they will just buy anything!

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases. Some do, some don't. This lacks substance
E. Consumers tend to be loyal to technology companies whose products they enjoy using. I think this is it. If they are loyal then you can wait until demand declines and just then throw something big out there for customer to buy again and again and again..

Happy to share some thoughts with experts. Would be nice also if a MGMAT tutor explains this one
Thank you all very much in advance
Cheers
J :)
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Re: Analyst: The pace of technological development brings [#permalink] New post 15 Jan 2014, 11:35
Bumping onto this one!
Would appreciate any comments/observations, this question is driving me nuts

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Re: Analyst: The pace of technological development brings [#permalink] New post 16 Jan 2014, 12:09
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jlgdr wrote:
kellogs4toniee wrote:
Much thanks in advance:

Question:

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.


--------------------------------------


The answer is B.

I understand this is a strengthen the argument question. But I would think that because media outlets often report about new devices even if sales are going strong, then regardless if the company waits until sales of old technology has declined, the plan might still backfire because media outlets will have already posted about the new technology. That if anything weakens the argument to me.

Can someone explain why B is the right answer?

Thank you.


Hey all, just wanted to let you know I chose (E) for the following reason.
We are being told that if a tech company announces a product too son it can back fire because customers would stop buying the new product. Having said that, the author says that a better plan might be to wait until they decline.

Now after reading this, use your common sense. For example, think of an Apple or a Samsung, you name it.
Now, why do these guys don't follow this strategy? Why do they "canibalize" to some extent some of their old devices when they launch every year or so new devices constantly. Wouldn't it be better to let the demand start to decline to then throw a new Iphone or Galaxy and then boost their sales?

The reason why they do it, is because if they don't another competitor will and will take customers away from them. Ok ok, I understand that we should stick to the stimulus and not make real life inferences, but it makes sense doesn't it?

Let's analyze other answer choices shall we?

A. New technology often becomes less expensive after an initial surge in sales. Out of scope
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. Ok media outlets do it, but are tech companies similar to media outlets including television programs and magazines? We can't assume that

C. Many consumers are unable to determine whether new technology is superior to current technology. Hmm, let me think about this one for a minute. This in fact weakens it. If they are unaware then there is no reason to wait. They won't really care, they will just buy anything!

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases. Some do, some don't. This lacks substance
E. Consumers tend to be loyal to technology companies whose products they enjoy using. I think this is it. If they are loyal then you can wait until demand declines and just then throw something big out there for customer to buy again and again and again..

Happy to share some thoughts with experts. Would be nice also if a MGMAT tutor explains this one
Thank you all very much in advance
Cheers
J :)


I love such questions where you are convinced the answer is North while the OA says it's South. These questions make us sit up and pay attention and in the process learn something new.
Like you I too thought the answer was E, it surely supports the assumption, but does the question stem asks us to support the assumption or assertion ? :shock:

When the term assertion struck me I turned to Google to find the difference between Assumption and Assertion and surely there was a very subtle difference.

Assertion - Assert implies stating confidently without need for proof or regard for evidence, implies conviction based on experience, faith and evidence

Assumption- fact or statement (unstated) taken for granted or accepted as true without proof, based on feeling

Now if this was a support the Assumption question the answer would have been E. But since this is a support the Assertion question let us find out what is the Analyst's main assertion.

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.
This states that companies must change the present trend which is to announce a new device while the sale of old device is still going strong.

From the above analysis we can see B is a clear winner as it states the current trend.


WOW !!! today was a success, I actually learned something :-D
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Re: Analyst: The pace of technological development brings [#permalink] New post 24 May 2014, 14:18
Still waitin' for MGMAT expert to come and solve this. Not convinced at ALL

Kudos are waitin' too
Cheers!
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Re: Analyst: The pace of technological development brings [#permalink] New post 24 May 2014, 23:18
My answer is E. Would love to see some proper explanations from the MGMAT guys on this one.
I feel that the only way for the conclusion to hold true, the customers must be loyal to the brand/company. Only then will they wait for a new device from the same company.
Re: Analyst: The pace of technological development brings   [#permalink] 24 May 2014, 23:18
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