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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] New post 08 Sep 2012, 16:38
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  45% (medium)

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59% (02:20) correct 41% (01:37) wrong based on 140 sessions
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.


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.

How would B support the conclusion. B states customers will come to know of the new device while the sales of old device is going strong.

Please someone answer
[Reveal] Spoiler: OA
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Re: MGMAT CR Test question [#permalink] New post 08 Sep 2012, 20:18
gmatmember85 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.


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.

How would B support the conclusion. B states customers will come to know of the new device while the sales of old device is going strong.

Please someone answer


I think 'A' will be right choice.
'B' is not adding any value to passage.
Any suggestion please.
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Re: MGMAT CR Test question [#permalink] New post 08 Sep 2012, 22:07
We Cannot Assume that New Technology is less costlier than the older one. So Choice (A) is not correct.
Choice B Supports the conclusion that, Since Media report about the new technology people tend to buy new products, even though the sale of older one is stronger.
So Manufacturers need to wait till the older one looses its attention.
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Re: MGMAT CR Test question [#permalink] New post 09 Sep 2012, 02:39
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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Re: MGMAT CR Test question [#permalink] New post 09 Sep 2012, 07:41
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Re: Analyst: The pace of technological development brings a [#permalink] New post 29 Sep 2014, 19:34
I still didn't understand this question. Can someone please elaborate?
Re: Analyst: The pace of technological development brings a   [#permalink] 29 Sep 2014, 19:34
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