Premise 1)
The pace of technological development brings a
constant stream of new devices to the market, and
many of them enjoy commercial success.
Premise 2)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.
Conclusion:
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. Well its a good example with respect to iphone series of cell phones. I hoe the guys at apple would also be following the same strategy.
Since, the author said once consumers hear about new technology, they might opt for newer one rather the old technology. The conclusion states unless the sales of products are not declining ,advertisement of new prods. should not be done.
A casual relation ship can be established as follows:
New product announcement ---leads to----> decline in sale of old product.
advertisement -------lead to---->announcement of new product.
advertisement-------lead to------> decline in sale of old product.
The argument is to hold the advertisement till the sales of old product starts to decline.
My reasoning-
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.--well broadly speaking it will deline the sales of old products but it has nothing to do with the advertisement.Out of scope ans.
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 what causal relation ship tells us, that
advertisement will lead to decline in old product sales, hence, it justifies the authors conclusion that advertisement should not be done till sales start to decline.
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.-This again does not affects the argument in any way.(some may be buying more or some may be buying less but no mention of old or new products)
e) Consumers tend to be loyal to technology companies whose products they enjoy using.(this points out that sales wont be affected by competition) irrelevant.
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40% (01:40) correct
