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Six months or so after getting a video recorder, many early [#permalink]
 21 Aug 2006, 21:28
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Six months or so after getting a video recorder, many early buyers apparently lost interest in obtaining videos to watch on it. The trade of businesses selling and renting videos is still buoyant, because the number of homes with video recorders is still growing. But clearly, once the market for video recorders is saturated, businesses distributing videos face hard times.
Which of the following, if true, would most seriously weaken the conclusion above?
(A) The market for video recorders would not be considered saturated until there was one in 80 percent of homes.
(B) Among the items handled by video distributors are many films specifically produced as video features.
(C) Few of the early buyers of video recorders raised any complaints about performance aspects of the new product.
(D) The early buyers of a novel product are always people who are quick to acquire novelties, but also often as quick to tire of them.
(E) In a shrinking market, competition always intensifies and marginal businesses fail.
Please explain
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Senior Manager
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Straight B here...
The argument says that at some point the video recorders sold will saturate and hence the businesses selling and renting videos will also weaken...
but B ensures that the video rental business will continue to do well
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gmatornot wrote: Straight B here...
The argument says that at some point the video recorders sold will saturate and hence the businesses selling and renting videos will also weaken...
but B ensures that the video rental business will continue to do well
Same line of thinking.
(B)
1:38
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VP
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One more for B.
The others dont affect the conclusion at all.
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It's clearly D for me for the following reasons:
A. We are asked to refute the difficulty that the distributors will face after saturation, not the saturation level (it's not given in the stimulus).
B. We are not told that the buyers lost interest because of lack any homevideo-specific content - there could have been other reasons
C. Again, the stimulus doesn't suggest the technical complains are the cause.
D. That's the right explanation: the behavior of those tech-savyy pioneers who test the new product (videos) of the market is not necessarily indicative of the larger mainstream public tthat will account for most of distrib's income once the saturation level is reached.
E. Irrelevant - there's no mention of a shrinkling market
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For me the answer is D
Because "many early buyers apparently lost interest" was stated as a trend the VR is experiencing, it clearly implies that sales are generated by the first few months of sales, if compared to the users before.
D "The early buyers of a novel product are always people who are quick to acquire novelties, but also often as quick to tire of them. " clearly states that not everyone follows this trend
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Re: CR 1000 - video distributing businesses [#permalink]
24 Aug 2006, 16:51
I think D
Can you post the OA ?
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My vote is for B...
Looking at it closely, doesn't D agree with the conclusion rather than weaken it?
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Senior Manager
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(D) is my choice. It indicates that only the early buyers of the product did not use it as much....meaning better times are ahead.
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(D) The early buyers of a novel product are always people who are quick to acquire novelties, but also often as quick to tire of them.
Conclusion: As early buyers tire of getting videos to watch, so will the rest of the market when everyone has a video recorder.
Analysis: The behaviour of the "early buyers" may not be the same as the rest of the market. Therefore, a characteristic in the behaviour of early buyers may not affect the remaining market.
Answer: D
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