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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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14 Aug 2007, 20:49
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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?

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.
[Reveal] Spoiler: OA

Last edited by Zarrolou on 07 Aug 2013, 21:06, edited 1 time in total.
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14 Aug 2007, 21:41
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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15 Aug 2007, 03:13
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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16 Aug 2007, 02:58
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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16 Aug 2007, 03:43
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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16 Aug 2007, 03:49
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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16 Aug 2007, 04:01
I am turning mild to C after seeing fatality's explanation
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16 Aug 2007, 10:47
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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16 Aug 2007, 15:20
Straight B

Nothing else strengthens it.
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16 Aug 2007, 16:50
B it is.
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16 Aug 2007, 18:22
go for B as well.
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16 Aug 2007, 19:51
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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18 Aug 2007, 09:25
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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29 Jun 2011, 03:09
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]

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27 Jun 2012, 10:46
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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]

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

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07 Aug 2013, 20:47
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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.

If we look at the argument structure, we find that we have two conclusions –an IC and a main C.
The IC is “announcing new tech too soon after the introduction of a a successful device can backfire. “WHY? – the author offers a premise: once consumers hear about a new device, they may stop buying the one currently on sale.
The main conclusion is that if a company wishes to announce the upcoming sale of a new device, it should wait until purchases of the old device begin to decline.
So , any premise that strengthens either one of our conclusions will strengthen the argument.
Choice B says that media outlets etc…. often report on the planned introduction of new devices.
So, this is increasing the probability that consumers will hear about these devices, thus strengthening the conclusion.

Am I correct in drawing the IC?

Last edited by Zarrolou on 07 Aug 2013, 21:15, edited 1 time in total.
Merging similar topics.
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07 Aug 2013, 22:27
getmydream wrote:
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

The first step to answering this question is to identify the main assertion, which is another way of saying the conclusion. The convention "So, ..." tends to identify the conclusion in an argument, so let's assume that the conclusion is "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."

We are looking for something that will strengthen the conclusion. That is, something that will strengthen the argument that if a company wants to announce a new device, it should wait until sales of the old device have begun to decline.

Answer choice A is beyond the scope of the question because it's talking about technology prices, not device prices (there is a difference). Whether the price of technology (i.e. the components used in a device) declines after its (the technology's) introduction isn't pertinent to the issue at hand (the conclusion asserted by the author). A is out.

B is the correct answer. The reason B is correct is because it directly supports the conclusion. If media tends to report early on the planned future introductions of new devices, then this will strengthen the author's recommendation that companies should wait until they announce their plans. Here, the media is seen to amplify the consumer purchasing effect that the author describes, lending weight to his recommendation.

Answer choice C is again out of scope because it is talking about technology. It is not relevant whether consumers can discern the superiority of one technology over another. Whether the latest iPod uses Intel or ARM, consumers are no less likely to purchase the new device, based on the information provided in the passage. We can eliminate C for the same reason that we eliminated A.

Answer choice D is irrelevant because, besides being out of scope, it is a meaningless statement. Some consumers buy fewer devices, while others buy more devices. What does this mean? Nothing. It's a meaningless statement. It's also inherently problematic because we don't know the frequency with which companies release new devices. It's entirely possible that a company's device release cycle coincides with the purchasing cycle.

Answer choice E is a trap answer. That consumers tend to exhibit loyalty to their technology company of choice doesn't necessarily mean that those consumers will hold off on purchasing the current product in favor of the unreleased future product. E is certainly possible, and it could have been provided by the author as background information, but E doesn't directly support the conclusion. For that reason, E is out.
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Re: Analyst: The pace of technological development brings a [#permalink]

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09 Aug 2013, 08:35
Im really tempted to choose C.
For me i understood from the question that:
1. The analyst's main assertion is that don't tell about the new product because then people will be more attracted towards it and stop buying the current product. This can happen because customers feel that they need the latest technology.

In C a customer is confused about the superiority of the technology and hence may wait till the new product and not buy the existing one.
In B it is just restating the analyst's assertion that people will get to know of the new product. How is it supporting his assertion.

Someone please explain what is the question looking for, reasoning to substantiate the analyst's theory or what?
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Re: Analyst: The pace of technological development brings a [#permalink]

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11 Aug 2013, 21:17
12bhang 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.

If we look at the argument structure, we find that we have two conclusions –an IC and a main C.
The IC is “announcing new tech too soon after the introduction of a a successful device can backfire. “WHY? – the author offers a premise: once consumers hear about a new device, they may stop buying the one currently on sale.
The main conclusion is that if a company wishes to announce the upcoming sale of a new device, it should wait until purchases of the old device begin to decline.
So , any premise that strengthens either one of our conclusions will strengthen the argument.
Choice B says that media outlets etc…. often report on the planned introduction of new devices.
So, this is increasing the probability that consumers will hear about these devices, thus strengthening the conclusion.

Am I correct in drawing the IC?

Hi,

I think you are correct in drawing IC but is there any specific reason you are doing this?

Thanks,
Chiranjeev
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Re: Analyst: The pace of technological development brings a [#permalink]

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23 Aug 2014, 03:16
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