When trying to identify new technologies that promise to transform the marketplace
, market researchers survey the managers of those companies that are developing new technologies. Such managers have an enormous stake in succeeding, so they invariably overstate the potential of their new technologies. Surprisingly, however, market researchers typically do not survey a new technologyâ€™s potential buyers, even though it is the buyers-not the producers-who will ultimately determine a technologyâ€™s commercial success.
Which of the following, if true, best accounts for the typical survey practices among market researchers?
A:If a new technology succeeds, the commercial benefits accrue largely to the producers, not to the buyers, of that technology.
B:People who promote the virtues of a new technology typically fail to consider that the old technology that is currently in use continues to be improved, often substantially.
C:Investors are unlikely to invest substantial amounts of capital in a company whose own managers are skeptical about the commercial prospects of a new technology they are developing.
D:The potential buyers for not-yet-available technologies can seldom be reliably identified.
E:The developers of a new technology are generally no better positioned than its potential buyers to gauge how rapidly the new technology can be efficiently mass-produced.
Responding to a pm:
Question: Which of the following, if true, best accounts for the typical survey practices among market researchers?
Let's find out what the survey practices are.
Market surveyors try to find the new technology that will be a commercial success in the near future (perhaps to invest or whatever). They survey the managers that are developing new technologies (who tend to overstate the potential of their new technologies).
However, market researchers typically do not survey the potential buyers (even though it is the buyers who determine commercial success).
Here is the problem. The researchers survey the managers (even though their opinion may be biased) but not the buyers (whose opinion drives commercial success). What will resolve this paradox? If they survey 'just the buyers' or at least 'the buyers too'. They want the opinion of the managers, they can take it but they MUST take the opinion of the buyers. The paradox here is that they don't take the opinion of the buyers. All you have to do is find what explains the reason they don't survey the buyers.
What explains the paradox? Option (D) - they are unable to identify the buyers and hence they can't survey the buyers.
Option (A) tells you that the commercial success accrues mainly to the producers, not the buyers. This gives the producers a reason to create unwarranted hype about their product. So this just tells you that why manager's opinion may not be very relevant. It doesn't explain why researchers don't survey the buyers.
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