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Analyst: The pace of technological development brings a [#permalink]
 14 Aug 2007, 21:49
Question Stats:
50% (01:14) correct
50% (00:50) wrong based on 0 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?
New technology often becomes less expensive after an initial surge in sales.
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.
Many consumers are unable to determine whether new technology is superior to current technology.
Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
Consumers tend to be loyal to technology companies whose products they enjoy using.
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Director
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ajisha 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?
New technology often becomes less expensive after an initial surge in sales.
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.
Many consumers are unable to determine whether new technology is superior to current technology.
Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
Consumers tend to be loyal to technology companies whose products they enjoy using.
Take B.
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Premis 1: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success.
Premis 2:But announcing new technology too soon after the introduction of a successful device can backfire.
Premis 3: 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.
Which of the following, if true, would best support the analyst's main assertion?
New technology often becomes less expensive after an initial surge in sales. -- even the prices decline the sale might keep its pace with larger quantities sold so doesnt support the assertion
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 one supports the assertion and gives example.
Many consumers are unable to determine whether new technology is superior to current technology. - nothing to do with commercialization
Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases. - out of scope
Consumers tend to be loyal to technology companies whose products they enjoy using. -- no even they are loayal. there is no guarantee that they buy two of the same device one with upgraded features.
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Director
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Ravshonbek wrote: Premis 1: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success.
Premis 2:But announcing new technology too soon after the introduction of a successful device can backfire.
Premis 3: 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.
Good structure, however I dont agree on answer 
I will go with D.
My reason: frequency is at issue here. Only D addresses it.
Price (as in A), superiority (as in C), or loyalty (as in E) isn't mentioned in the stem.
B is a harmless beast 
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ajisha 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?
New technology often becomes less expensive after an initial surge in sales.
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.
Many consumers are unable to determine whether new technology is superior to current technology.
Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
Consumers tend to be loyal to technology companies whose products they enjoy using.
I agree with B. If customers know about the introduction of new item they may wait for the new technology to come so that they can invest in the latest device.
A. - If new technology becomes less expensive surely the sales will be maintained.
C. is out of scope. stimulus is talking about the introduction of new technology. not whether customers will be able to determine or not.
D. the frequency of purchase is not a concern.
E. Stimulus is talking about the product from the same company.
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I chose C 
This was a toughie . Would like to see the OE for this.
If consumers are buying products depending on the superiority of the technology, rather than the timing of the products, then the success of the new product depends on the superiority of the technology rather than the timing of the entry into the maket.
So, if the consumers are unable to determine the superiority of technologies, then only timing of the entry can lead to success of the product.
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Director
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I am turning mild to C after seeing fatality's explanation
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main assertion:
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.
we are asked to find the answer that best supports this assertion.
besides the two choices below, the rest are irrelevant.
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. <-- at first glance, this looks like the answer but it's simply restating the analyst's assumption that an announcement in the media regarding new product would stop consumers from purchasing an old product. this is not necessarily as assertion.
Many consumers are unable to determine whether new technology is superior to current technology. <-- this is what the analyst is asserting, that consumers are not good at differentiating between superiority of past and present technology which is why they will rush to buy a newer product assuming that new= better. hence, this should be the answer.
very curious to know the OA.
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Straight B
Nothing else strengthens it.
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B it is.
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go for B as well.
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guys..the analyst's main assertion is that companies should not sell new technology immediatly after launching a new product...
ONLY B makes ..its says media outlets tend to spread the word and that contributes to people buying the newer technology...
we have to distinguish between premise and assertion...
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Thanks guys, OA is B
But i really dont understand, how does it strengthen the assertion. It does not say that such actions of media reduces current sale.
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I too think ans is E. Can someone explain why B is correct.
the argument says company shoould wait till the sale of old product reduces. But what if some other company introduces the product with new technology? to support the argument a steam is required which says customer doesnot change the brand...and hence i opted for E. i m still not convinced for B
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Re: Analyst: The pace of technological development brings a [#permalink]
27 Jun 2012, 11:46
Guys, The key to answering this question correctly is to focus on 2 key areas of the argument. 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.There are a couple of things that you need to take away from the argument: 1. The argument is about device sales - re-enforced by the statement " they may stop buying the one currently on sale". The argument is not about a product line. In other words, if a iphone 5 is announced too soon after iphone4S, the sales of iphone4S - a particular iteration of the product line will go down. 2. Why would these sales go down? If consumers hear about the announcement (notice the use of word " once") they "may" decide to wait for the next iteration. What would strengthen the argument?There are two things that could strengthen the argument: 1. Evidence that it is likely that consumers will hear about new product announcements once they are made [choice B does exactly that] 2. Evidence that once consumers hear about new product announcements, a good proportion of them push of purchases [none of the choices do that] What about choice D?Choice D is kind of irrelevant. Even if I buy phones multiple times a year, I might not buy 4S if I know iphone 5 is coming. Let me know if this helps. -Rajat
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Re: Analyst: The pace of technological development brings a
[#permalink]
27 Jun 2012, 11:46
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