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Analyst: The pace of technological development brings a

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Analyst: The pace of technological development brings a [#permalink]

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New post 18 Jun 2011, 22:28
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64% (02:36) correct 36% (02:06) wrong based on 50 sessions

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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.


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Re: Good CR Question [#permalink]

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New post 19 Jun 2011, 13:58
a. New technology often becomes less expensive after an initial surge in sales. - Not of much relevance to the main argument
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 clearly states that if new products are advertised through media outlets while the sales of old devices are strong, in which case the customer will change their decision to buy new product; hence comapnies should wait.
c. Many consumers are unable to determine whether new technology is superior to current technology. - this may actually weaken or if the statement is true, than customers will not buy either of the new or old product.
d. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases. - No help
e. Consumers tend to be loyal to technology companies whose products they enjoy using. - again no help; if they remain loyal they may still buy old or new product.. doesnt help to determine if companies should wait to launch new product till the sales of the old product starts declining.
Re: Good CR Question   [#permalink] 19 Jun 2011, 13:58
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