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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 29 Oct 2007, 09:42
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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.

Please explain your answers.
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Re: MGMAT CR: Technological development [#permalink] New post 29 Oct 2007, 10:23
[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.]

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.
[ New information that supports the analyst's position]

(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.
[ Not relevant - it is about the company "announcing" new products]

(C)Many consumers are unable to determine whether new technology is superior to current technology.
[The argument states that many customers stop buying the old product, so they know that the new product should be superior]

(D)Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
[Not relevant]

(E)Consumers tend to be loyal to technology companies whose products they enjoy using.
[Not relevant]
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 [#permalink] New post 29 Oct 2007, 10:25
IMO C

C gives a reason that consumers may stop buying what's available now.
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 [#permalink] New post 31 Oct 2007, 06:16
What is the OA?
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 [#permalink] New post 31 Oct 2007, 06:57
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 [#permalink] New post 31 Oct 2007, 09:36
empanado wrote:
What is the OA?


OA is B. Any comments?
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 [#permalink] New post 31 Oct 2007, 10:07
eyunni wrote:
empanado wrote:
What is the OA?


OA is B. Any comments?


Hmmm...still don't get it. The paragraph says "announcing new technology".

I think it is implied that the media would cover announcements. ain't it?
  [#permalink] 31 Oct 2007, 10:07
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