When trying to identify new technologies that promise to : GMAT Critical Reasoning (CR)
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# When trying to identify new technologies that promise to

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Manager
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When trying to identify new technologies that promise to [#permalink]

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18 Sep 2006, 01:14
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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.
[Reveal] Spoiler: OA
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Director
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18 Sep 2006, 04:32
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A:If a new technology succeeds, the commercial benefits accrue largely to the producers, not to the buyers, of that technology.
out
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.
out

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.
out- explains why researchers have an interest in surveying managers, but grounds for not surveying customers are not provided.
D:The potential buyers for not-yet-available technologies can seldom be reliably identified.
In : here s the reason!
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.
out- if not better positioned, then why do the researchers focus on managers only!?
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18 Sep 2006, 05:31
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D:The potential buyers for not-yet-available technologies can seldom be reliably identified.

The survey cannot poll the customers as the customers are not known. Therefore, it makes sense for the survey to talk only to the company managers.

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18 Sep 2006, 07:47
haas_mba07 wrote:
D:The potential buyers for not-yet-available technologies can seldom be reliably identified.

The survey cannot poll the customers as the customers are not known. Therefore, it makes sense for the survey to talk only to the company managers.

D it is for the reason stated by hass_mba.
It is the reason why surveyers don't poll potential customers.
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18 Sep 2006, 08:41
we want to explain why buyers are not included in the survey for new technology, one reason may be that they are not easily identifiable...

E it is
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18 Sep 2006, 12:11
simple D. if you can't identify buyers, there's no chance of interviewing them.
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20 Sep 2006, 01:06
Easy D.

Conclusion: Market researchers prefer talking to the technology developers rather than the technology buyers even though the developers exaggerate the capabilities of their respective technologies.

CR type: Resolve/Explain. - why do the market researchers prefer talking to developers rather than the buyers?

A - Hmmm....Maybe..Keep.
B - Out of scope.
C - this explains why the managers exaggerate, NOT why the researchers ask the developers.
D - YES!!! So thats why they dont ask the buyers...they don't know who they are!
E - eh?? even if it were within scope, it would weaken the argument
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21 Sep 2006, 17:47
D for me. How can one know who will buy the product, if nobody has seen the product before?
Going by the number of responses, I'm sure the other options have already been well discussed.
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Re: When trying to identify new technologies that promise to [#permalink]

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09 Jul 2012, 20:26
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jerrywu wrote:
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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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews BSchool Forum Moderator Status: Flying over the cloud! Joined: 16 Aug 2011 Posts: 912 Location: Viet Nam Concentration: International Business, Marketing GMAT Date: 06-06-2014 GPA: 3.07 Followers: 72 Kudos [?]: 590 [0], given: 44 Re: When trying to identify new technologies that promise to [#permalink] ### Show Tags 10 Jul 2012, 00:54 D:The potential buyers for not-yet-available technologies can seldom be reliably identified. What happen when the companies survey potential buyers if they cannot (or seldom) be reliably identified. The result from the survey will be un-representative, and not conclusive. _________________ Rules for posting in verbal gmat forum, read it before posting anything in verbal forum Giving me + 1 kudos if my post is valuable with you The more you like my post, the more you share to other's need CR: Focus of the Week: Must be True Question Senior Manager Joined: 07 Sep 2010 Posts: 336 Followers: 6 Kudos [?]: 639 [0], given: 136 Re: When trying to identify new technologies that promise to [#permalink] ### Show Tags 10 Jul 2012, 04:52 Hi Karishma, Thanks for the response. I would like to discuss couple of follow up questions. Request you to provide your reasoning on them as well. 1. Veritas CR book says that you must select the answer choice that allows both parts of the stimulus to exist. Does this mean that even if an answer choice targets only one position of the paradox and the other position is logical outcome of the first position, then the answer choice will probably be correct. Lets take an example of this question only. Choice D) The potential buyers for not-yet-available technologies can seldom be reliably identified. This answer choice is giving an explanation of buyers only and there is no relevant information of Managers. However, it does implicitly targets Managers as well i.e if we are not able to find the buyers, then the second best case is to approach Managers. I discarded this option, bcoz I thought it is not giving me a clear cut explanation about Managers. 2. I read that the best strategy to crack CR questions is to Pre -Think. I did analyzed the correct option before moving onto answer choices. However, I have a doubt on this approach. Many a times you do see your analysed answer choice in options and many a times you don't. And because of this on and off situation, when I see my analyzed answer choice in options, I become unsure of my answer. How to cope up with this situation. Please suggest. Thanks H VeritasPrepKarishma wrote: 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). _________________ +1 Kudos me, Help me unlocking GMAT Club Tests Senior Manager Joined: 15 Aug 2013 Posts: 328 Followers: 0 Kudos [?]: 52 [0], given: 23 Re: When trying to identify new technologies that promise to [#permalink] ### Show Tags 16 May 2014, 14:40 imhimanshu wrote: Hi Karishma, Thanks for the response. I would like to discuss couple of follow up questions. Request you to provide your reasoning on them as well. 1. Veritas CR book says that you must select the answer choice that allows both parts of the stimulus to exist. Does this mean that even if an answer choice targets only one position of the paradox and the other position is logical outcome of the first position, then the answer choice will probably be correct. Lets take an example of this question only. Choice D) The potential buyers for not-yet-available technologies can seldom be reliably identified. This answer choice is giving an explanation of buyers only and there is no relevant information of Managers. However, it does implicitly targets Managers as well i.e if we are not able to find the buyers, then the second best case is to approach Managers. I discarded this option, bcoz I thought it is not giving me a clear cut explanation about Managers. 2. I read that the best strategy to crack CR questions is to Pre -Think. I did analyzed the correct option before moving onto answer choices. However, I have a doubt on this approach. Many a times you do see your analysed answer choice in options and many a times you don't. And because of this on and off situation, when I see my analyzed answer choice in options, I become unsure of my answer. How to cope up with this situation. Please suggest. Thanks H VeritasPrepKarishma wrote: 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). I would like to echo this point as well. The CR Reasoning Bible by Powerscore states that resolve the paradox questions should address both ends. The OG solution doesn't. Can someone clarify why that's the case? GMAT Club Legend Joined: 01 Oct 2013 Posts: 10444 Followers: 887 Kudos [?]: 192 [0], given: 0 Re: When trying to identify new technologies that promise to [#permalink] ### Show Tags 25 Jun 2015, 18:51 Hello from the GMAT Club VerbalBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. Director Joined: 04 Jun 2016 Posts: 656 GMAT 1: 750 Q49 V43 Followers: 45 Kudos [?]: 178 [0], given: 36 When trying to identify new technologies that promise to [#permalink] ### Show Tags 13 Jul 2016, 02:13 The answer is D ]A big budget movie was pirated and distributed 3 weeks before its release by a internet hacker. Now to figure out how that leak happen, who would you arrest, the people who downloaded it from the internet or the Hacker who uploaded it. Catching the hacker would be a better option because he would give information as to how he as able to get the movie. Is there some person inside the studio who helped him or Is the Digital security of the studio's server vulnerable or Did the editor who edited the final version of the movie forget the DVD on a train and the hacker found it. All such questions can be found mostly by catching the hacker. There is no use to catch people who downloaded the movie from internet. They will simply say, I found the copy on internet and I don't now how and who uploaded it on Internet. Similarly Market Researchers survey the managers ; because it is easy to catch a manager and find out all about his product. It is hard to figure out a potential customer of a future technology because you cannot know for sure which person is a consumer and which person is not. While talking to a random person ,there is a high probability that either :- 1) The person you talk to is not a user of the technology. 2) Even if the person is a user of similar technology or interested in it, he cannot tell you how exactly the technology works because he has not used that particular technology.. right ? THREFORE D which says :- The potential buyers for not-yet-available technologies can seldom be reliably identified. jerrywu wrote: 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. _________________ Posting an answer without an explanation is "GOD COMPLEX". The world doesn't need any more gods. Please explain you answers properly. FINAL GOODBYE :- 17th SEPTEMBER 2016. Last edited by LogicGuru1 on 18 Jul 2016, 23:36, edited 1 time in total. Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 7076 Location: Pune, India Followers: 2091 Kudos [?]: 13310 [0], given: 222 Re: When trying to identify new technologies that promise to [#permalink] ### Show Tags 18 Jul 2016, 23:00 imhimanshu wrote: Hi Karishma, Thanks for the response. I would like to discuss couple of follow up questions. Request you to provide your reasoning on them as well. 1. Veritas CR book says that you must select the answer choice that allows both parts of the stimulus to exist. Does this mean that even if an answer choice targets only one position of the paradox and the other position is logical outcome of the first position, then the answer choice will probably be correct. Lets take an example of this question only. Choice D) The potential buyers for not-yet-available technologies can seldom be reliably identified. This answer choice is giving an explanation of buyers only and there is no relevant information of Managers. However, it does implicitly targets Managers as well i.e if we are not able to find the buyers, then the second best case is to approach Managers. I discarded this option, bcoz I thought it is not giving me a clear cut explanation about Managers. 2. I read that the best strategy to crack CR questions is to Pre -Think. I did analyzed the correct option before moving onto answer choices. However, I have a doubt on this approach. Many a times you do see your analysed answer choice in options and many a times you don't. And because of this on and off situation, when I see my analyzed answer choice in options, I become unsure of my answer. How to cope up with this situation. Please suggest. Thanks H VeritasPrepKarishma wrote: 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). First of all, note that this question is not your "typical paradox" question. We would club it with other paradox questions but it is slightly different. Usually, your paradox questions have two positions A and B. You don't expect A and B to coexist but the answer explains how and why they do. Here, you expect B to happen too. It seems that B would be more useful than A but still only A is done. The problem here is not why A exists but why B doesn't exist too. The manager's account may not be without exaggeration but that doesn't imply that the managers SHOULD NOT be interviewed. The real question is why the potential buyers are not interviewed even though their opinion would matter more. Option (D) addresses that concern. Pre-thinking is usually helpful. The advantage lies not just in the fact that you may be able to arrive at the answer even before you read it in the options but also in the fact that you read the argument more closely when you expect yourself to answer the question on your own first. If it is throwing you off, avoid doing it. Not every strategy works for everyone. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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Re: When trying to identify new technologies that promise to [#permalink]

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26 Oct 2016, 23:59
Pre -Thinking :

The Question is , why do the researchers go to the producer and not the consummers ?
A valid Q !

A:If a new technology succeeds, the commercial benefits accrue largely to the producers, not to the buyers, of that technology.Out Of Scope
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.Out Of Scope

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.Out Of Scope
D:The potential buyers for not-yet-available technologies can seldom be reliably identified.
Hmm , lets keep it - Its somewhere similar to what we thought

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.
Well that would WEAKEN the statement .

Concluding with ans C
Re: When trying to identify new technologies that promise to   [#permalink] 26 Oct 2016, 23:59
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