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The pace of new technology brings a constant stream of new

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The pace of new technology brings a constant stream of new [#permalink] New post 21 Dec 2009, 21:13
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The pace of new technology brings a constant stream of new devices to the market and many of them enjoy commercial success.But analysts warn that announcing new technology too soon after the introduction of a successful device can backfire: consumers may resent feeling pressured to spend money to replace a device they have just purchased, even if the new technology is clearly superior.The result is that consumers either do not buy the old device in anticipation of the new one, or they do not buy t he new device out of resentment over having already spent their money on the old one. So if a company wishes to introduce 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 claims made above?

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

b. Media outlets such as television and magazines often report on the planned introduction of new devices while sales of old devices are still strong.

c• Consumers are usually able to determine whether new technology is superior to current technology.

d• Surveys have shown that consumers prefer to make only one or two technology purchases per year.

e• Consumers tend to be loyal to technology companies whose products they enjoy using.

i am surprised by OA , will let u knw soon
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Re: MGMAT Test( strengthening) [#permalink] New post 21 Dec 2009, 22:51
Good one.

IMO C.
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Re: MGMAT Test( strengthening) [#permalink] New post 22 Dec 2009, 00:50
E for me
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Re: MGMAT Test( strengthening) [#permalink] New post 22 Dec 2009, 05:54
Not too sure :(

Please can someone post Expl. along with the OA...

Many Thanks....
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Re: MGMAT Test( strengthening) [#permalink] New post 22 Dec 2009, 10:27
Tough one-
C looks vaguely correct, but honestly I am clueless.
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Re: MGMAT Test( strengthening) [#permalink] New post 22 Dec 2009, 11:55
On second thought I pick B
Reason: Inconsistent punctuation after the alphabet choice :-D .
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Re: MGMAT Test( strengthening) [#permalink] New post 22 Dec 2009, 12:02
E...
if they are loyal they will stick to the coy and buy its new technology when it comes...
but if they are not they will easily switch over to any competitors product.
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Re: MGMAT Test( strengthening) [#permalink] New post 22 Dec 2009, 19:08
This question is tough and i think in 700 bracket

Anyway , my take is B

Conclusion:-
if a company wishes to introduce a new device, it should wait until purchases of the old device have begun to decline.
Option B suggests that introducing planned introduction of new devices while sales of old devices are still strong will lead to consumers resentment and impact on sales
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Re: MGMAT Test( strengthening) [#permalink] New post 22 Dec 2009, 22:35
C bcoz

consumers may resent feeling pressured to spend money to replace a device they have just purchased, even if the new technology is clearly superior

A Consumer would try to replace a device if he or she thinks it is outdated. This means that the consumer would have some knowledge of the technology that he or she is using now to that is currently available in the market.

OA ??
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Re: MGMAT Test( strengthening) [#permalink] New post 23 Dec 2009, 01:05
OA is B

hope explanation in this link will help u , the way it helped me to understand the logic

http://www.beatthegmat.com/pace-of-new- ... 49567.html
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Re: MGMAT Test( strengthening) [#permalink] New post 18 Jan 2011, 05:22
Tough one, B fits the bill better than D, just because there is no timeline mentioned.

a,c,e straight loosers
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Re: MGMAT Test( strengthening) [#permalink] New post 20 Jan 2011, 10:08
i went with D. consumers prefer to make only one or two technology purchases per year, so i think it supports the claims.. :P
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Re: MGMAT Test( strengthening) [#permalink] New post 21 Jan 2011, 00:57
Between B and C, I chose B but had a doubt regarding C. While now I realize that B is the closest.

Reason:
The Conclusion: "So if a company wishes to introduce a new device, it should wait until purchases of the old device have begun to decline."

B is supporting the fact that companies do announce the introduction of new technology very soon (by the statement-"while sales of old devices are still strong. ") and this strengthens the above conclusion while C is not concerned with this
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Re: MGMAT Test( strengthening) [#permalink] New post 21 Jan 2011, 05:36
I picked D but the timeline is not mentioned in the text. But I still do not see clear support in B. Can somebody explain. This one is not engough for me:

If its true that media outlets often report on the planned introduction of the new device while sales for the old device are strong, then the idea that consumers will halt their purchase of the current device in anticipation of the new device is strengthened since the consumers are now aware of the upcoming device. And the argument that a company should wait until purchases of the old device begin to decline is thereby strengthened since the company's revenues will be hurt if consumers halt their purchase of the device that is currently in the market.

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Re: MGMAT Test( strengthening) [#permalink] New post 21 Jan 2011, 10:14
It has to be E! E is right.
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Re: The pace of new technology brings a constant stream of new [#permalink] New post 09 Oct 2013, 00:34
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Re: The pace of new technology brings a constant stream of new   [#permalink] 09 Oct 2013, 00:34
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