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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 30 Mar 2008, 15:53
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A
B
C
D
E

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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.
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Re: CR: technological development [#permalink] New post 30 Mar 2008, 17:37
B - its the only one that supports anything to do with the assertion
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Re: CR: technological development [#permalink] New post 31 Mar 2008, 12:19
E makes sense too.

conclusion: a company should postpone a new product until the currently one dries out
assumption: consumers will continue to buy the products that the company makes.
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Re: CR: technological development [#permalink] New post 31 Mar 2008, 21:03
I go with E.

People would buy company B's advanced product and not wait till company A releases its.
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Re: CR: technological development [#permalink] New post 31 Mar 2008, 21:20
I will also go for answer option E. Here is my reasoning...

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.

Premise
Once consumers hear about the new device, they may stop buying the one currently on sale.

In the line of this setup, E is the best answer choice
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Re: CR: technological development [#permalink] New post 31 Mar 2008, 21:58
Yeah on second thoughts - E does look pretty good.
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Re: CR: technological development [#permalink] New post 01 Apr 2008, 00:48
I second E as well.

Conclusion: Companies looking to launch a new productshould wait until the sales of the old product has declined.

premise: Customers stop buying the old product when they hear of a new product.

What will strengthen the conclusion clearly E as loyal customers will purchase the new product when they start to stop purchasing the old product.
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Re: CR: technological development [#permalink] New post 01 Apr 2008, 07:47
OA is B :?
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Re: CR: technological development [#permalink] New post 01 Apr 2008, 10:25
wow!

somebody has to explain this to me.
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Re: CR: technological development [#permalink] New post 01 Apr 2008, 15:33
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.
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Re: CR: technological development [#permalink] New post 01 Apr 2008, 21:39
BSD - option B however ends with

Quote:
while the sales of old devices are still strong.


With that does your explanation still hold
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Re: CR: technological development [#permalink] New post 01 Apr 2008, 22:12
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.
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Re: CR: technological development [#permalink] New post 02 Apr 2008, 02:45
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 the correct answer
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Re: CR: technological development [#permalink] New post 02 Apr 2008, 03:04
so finally answer is B.
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Re: CR: technological development [#permalink] New post 02 Apr 2008, 07:14
Cool BSD.

B it is.

Why do answers always seem obvious after you know them :(
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Re: CR: technological development [#permalink] New post 16 Apr 2008, 18:12
good one. B
Re: CR: technological development   [#permalink] 16 Apr 2008, 18:12
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