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Analyst: The pace of technological development brings a

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Re: CR - Tech Toys [#permalink]

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New post 26 Jun 2013, 18:59
Thank You so much for explaining it so well. That helped. :)
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 19 Sep 2014, 01:39
pqhai wrote:
distressedDamsel wrote:
walker wrote:
MGMAT

I also can't digest the fact that B is the correct answer even after reading OE :?


Can someone explain to me why the answer cannot be A?

"New technology often becomes less expensive after an initial surge in sales."

If new technology becomes less expensive, then these new devices become more attractive to purchase and therefore the sales of old ones dip. Where am I going wrong?


Hi distressedDamsel

I'm glad to help.

First of all, this question is not easy, because you may not determine a CORRECT CONCLUSION. Please keep in mind, conclusion is KEY to solve strengthen/weaken questions. Let imagine, if you don't know what the author wants to conclude, how could you weaken or strengthen his/her point.


ANALYZE THE STIMULUS:

Fact: Technological development brings a constant stream of new devices to the market. Many of them enjoy commercial success.
Fact: Once consumers hear about the new device, they may stop buying the one currently on sale.
Conclusion: Announcing new technology too soon after the introduction of a successful device can backfire.

Never assume conclusions are ALWAYS the first or last sentences. Like this question, if you think the last sentence - "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" - is the main conclusion, you will pick the wrong answer.

The main point you should strengthen is: Announcing new technology too soon ==> can get backfire


ANALYZE EACH ANSWER:

(A) New technology often becomes less expensive after an initial surge in sales.
Wrong. Does it help you to explain why "announcing new tech too soon will get backfire". Not at all, it just tells you the FACT: after new tech gets peak --> prices will decline, that's it.

(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.
Correct. "B" helps you strengthen the main point "announcing new tech too soon --> get back fire". The KEY is "Once consumers hear about the new device, they may stop buying the one currently on sale". How can they hear?. Consumers will hear through Media outlets => Media outlets indirectly stop the sales of current products".

(C) Many consumers are unable to determine whether new technology is superior to current technology.
Wrong. Out of scope. The argument does not talk about which technology is more superior.

(D) Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
Wrong. Does not help. The Fact: consumers make only 1 or 2 purchases does not affect the main point at all.

(E) Consumers tend to be loyal to technology companies whose products they enjoy using.
Wrong. Out of scope. Nothing about "loyalty".

Hope it helps.


Hi pqhai,

Can you please explain how you deduced the conclusion to be, "announcing new technology too soon after the introduction of a successful device can backfire." As per MGMAT Strategy guide, when there are two claims and you have to ascertain the conclusion you place the two claims to check which leads to the other.
Here,
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 THEREFORE announcing new technology too soon after the introduction of a successful device can backfire.

OR,

announcing new technology too soon after the introduction of a successful device can backfire THEREFORE 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.

To me the second one makes more sense.

Can you please explain further?
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 04 Jul 2016, 00:10
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Re: Analyst: The pace of technological development brings a   [#permalink] 04 Jul 2016, 00:10

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