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Analyst: The pace of technological development brings a [#permalink]
30 Mar 2008, 16:53
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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.
Chinese Democracy is misunderstood...at your nearest BestBuy.
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Damn I was on the right track all along I should always go with my first instincts !!!
My thought process went like this : Main assertion - "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. " and that consumers will stop buying "Once consumers hear about the new device". How will they hear about it ? announcement + TV and radio advertisements which is option B.
Yes of course - even more so. If the sales are still strong and tv companies start advertising the announcement of a new product then the customers will stop buying the existing product leading to a decline in sales.