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Analyst: The pace of technological development brings a

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Analyst: The pace of technological development brings a  [#permalink]

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New post 22 Sep 2012, 10:58
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Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success. But announcing new technology too soon after the introduction of a successful device can backfire. Once consumers hear about the new device, they may stop buying the one currently on sale. 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.

Which of the following, if true, would best support the analyst's main assertion?

New technology often becomes less expensive after an initial surge in sales.
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.
Many consumers are unable to determine whether new technology is superior to current technology.
Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
Consumers tend to be loyal to technology companies whose products they enjoy using.
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Re: Analyst: The pace of technological development  [#permalink]

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New post 22 Sep 2012, 19:54
This question has been discussed multiple times in this forum. Please use the search functionality before posting a question.

analyst-the-pace-of-technological-development-brings-a-64914.html?fl=similar
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Re: Analyst: The pace of technological development  [#permalink]

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New post 22 Sep 2012, 23:16
Capricorn369 wrote:
This question has been discussed multiple times in this forum. Please use the search functionality before posting a question.

analyst-the-pace-of-technological-development-brings-a-64914.html?fl=similar

Thanks for your reply i am new to club i dont know few things
i got the explanation
can you help me on few others which i had posted i tried searchn bt couldnt find it.
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Re: Strengthen type  [#permalink]

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New post 24 Sep 2012, 08:15
A – not relevant. Eliminate
B – If the media report the new device then sales will decline. Therefore the company should wait until this point to announce the sale of a new device, rather than beating the media to the punch and reducing their own sales rate.
C - not relevant. Eliminate
D – Not relevant. Eliminate
E – Not relevant. Eliminate
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Re: Strengthen type  [#permalink]

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New post 24 Sep 2012, 09:09
Archit143 wrote:
Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success. But announcing new technology too soon after the introduction of a successful device can backfire. Once consumers hear about the new device, they may stop buying the one currently on sale. 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.

Which of the following, if true, would best support the analyst's main assertion?


The way I solved it -

The question is asking for supporting the analyst's main assertion>
What is that - It is - that "Once consumers hear about the new device, they may stop buying the one currently on sale"

So the correct answer choice should somehow support that how would customers come to know about a new technology.

AC bridges that gap by supporting the author's main point.
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Re: Strengthen type  [#permalink]

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New post 24 Sep 2012, 10:36
Choice B is the correct one. Because the power and the speed of media, consumers can know the new product before it be published. So, they (consumers) will wait for the new product instead of buying the current products.
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Re: Analyst: The pace of technological development brings a  [#permalink]

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New post 02 Apr 2013, 23:39
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This is one of the most difficult question I've ever seen. I just went for B by using POE. I saw many a ton of great solutions for this question, I just want to clarify a little bit though.

Premise: people stop buying old products if there's an announcement of new products.
Conclusion: a company should delay the announcement until the sale of old products is declined.
Assumption: the announcement can affect purchasing behavior of many people. if this assumption is not hold, the conclusion is broken.

The answer B is indirect assumption. It says media outlets often report new products while the sales of old products are still strong. It implies that media outlets report --> people know NEW product is coming--> sales of OLD ones will be declined sooner or later. That's exactly the assumption mentioned above.

Still not clear? No problem.

Other way to understand the logic. We can use negation technique. Let negate the logic above: media outlets report NEW products --> People NOT know --> sales of OLD products will NOT be declined. Hey, what's going on? it means the announcement of NEW product does not affect the sale of OLD ones. So the company can announce its new products whenever it wants. Timing doesn't matter. Hence, the conclusion is failed.
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Re: Analyst: The pace of technological development brings a  [#permalink]

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New post 26 Jun 2013, 05:59
walker wrote:
Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success. But announcing new technology too soon after the introduction of a successful device can backfire. Once consumers hear about the new device, they may stop buying the one currently on sale. 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.

Which of the following, if true, would best support the analyst's main assertion?

(A) New technology often becomes less expensive after an initial surge in sales.
(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.
(C) Many consumers are unable to determine whether new technology is superior to current technology.
(D) Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
(E) Consumers tend to be loyal to technology companies whose products they enjoy using.

My question is how it is close to real GMAT


************************
We need to strengthen this one. I would say this was too easy for real GMAT :-D

(A) New technology often becomes less expensive after an initial surge in sales. Neutral (Neither Strengthen nor weaken)
(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. Strengthen(More focus on new tech, causing an increase in new tech sales and decrease in old tech sales)
(C) Many consumers are unable to determine whether new technology is superior to current technology.(Neutral) people are confused to choose among technologies.
(D) Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases. Not related. the time-scale of one year doesn't help at all.
(E) Consumers tend to be loyal to technology companies whose products they enjoy using. (Weaken), Loyality is Support for old tech.
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Re: Analyst: The pace of technological development brings a  [#permalink]

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New post 26 Jun 2013, 10:19
Conclusion -- 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.

Question --Which of the following, if true, would best support the analyst's main assertion

Answer Choice B --- supports the main conclusion by stating that that media outlets also think (report) the same way that new devices should be introduced in a planned way when sales of old devices are still strong.-----supporting the conclusion.

No answer choice apart from B support the conclusion, other choices are either out of scope or weakens the conclusion.
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New post 26 Jun 2013, 15:37
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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.
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Re: Analyst: The pace of technological development brings a  [#permalink]

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New post Updated on: 07 Aug 2013, 22:15
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Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success. But announcing new technology too soon after the introduction of a successful device can backfire. Once consumers hear about the new device, they may stop buying the one currently on sale. 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.

Which of the following, if true, would best support the analyst's main assertion?
A New technology often becomes less expensive after an initial surge in sales.
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.
C Many consumers are unable to determine whether new technology is superior to current technology.
D Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
E Consumers tend to be loyal to technology companies whose products they enjoy using.

If we look at the argument structure, we find that we have two conclusions –an IC and a main C.
The IC is “announcing new tech too soon after the introduction of a a successful device can backfire. “WHY? – the author offers a premise: once consumers hear about a new device, they may stop buying the one currently on sale.
The main conclusion is that if a company wishes to announce the upcoming sale of a new device, it should wait until purchases of the old device begin to decline.
So , any premise that strengthens either one of our conclusions will strengthen the argument.
Choice B says that media outlets etc…. often report on the planned introduction of new devices.
So, this is increasing the probability that consumers will hear about these devices, thus strengthening the conclusion.

Am I correct in drawing the IC?

Originally posted by 12bhang on 07 Aug 2013, 21:47.
Last edited by Zarrolou on 07 Aug 2013, 22:15, edited 1 time in total.
Merging similar topics.
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Re: Analyst: The pace of technological development brings a  [#permalink]

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New post 07 Aug 2013, 23:27
getmydream wrote:
I too think ans is E. Can someone explain why B is correct.
the argument says company shoould wait till the sale of old product reduces. But what if some other company introduces the product with new technology? to support the argument a steam is required which says customer doesnot change the brand...and hence i opted for E. i m still not convinced for B


The first step to answering this question is to identify the main assertion, which is another way of saying the conclusion. The convention "So, ..." tends to identify the conclusion in an argument, so let's assume that the conclusion is "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."

We are looking for something that will strengthen the conclusion. That is, something that will strengthen the argument that if a company wants to announce a new device, it should wait until sales of the old device have begun to decline.

Answer choice A is beyond the scope of the question because it's talking about technology prices, not device prices (there is a difference). Whether the price of technology (i.e. the components used in a device) declines after its (the technology's) introduction isn't pertinent to the issue at hand (the conclusion asserted by the author). A is out.

B is the correct answer. The reason B is correct is because it directly supports the conclusion. If media tends to report early on the planned future introductions of new devices, then this will strengthen the author's recommendation that companies should wait until they announce their plans. Here, the media is seen to amplify the consumer purchasing effect that the author describes, lending weight to his recommendation.

Answer choice C is again out of scope because it is talking about technology. It is not relevant whether consumers can discern the superiority of one technology over another. Whether the latest iPod uses Intel or ARM, consumers are no less likely to purchase the new device, based on the information provided in the passage. We can eliminate C for the same reason that we eliminated A.

Answer choice D is irrelevant because, besides being out of scope, it is a meaningless statement. Some consumers buy fewer devices, while others buy more devices. What does this mean? Nothing. It's a meaningless statement. It's also inherently problematic because we don't know the frequency with which companies release new devices. It's entirely possible that a company's device release cycle coincides with the purchasing cycle.

Answer choice E is a trap answer. That consumers tend to exhibit loyalty to their technology company of choice doesn't necessarily mean that those consumers will hold off on purchasing the current product in favor of the unreleased future product. E is certainly possible, and it could have been provided by the author as background information, but E doesn't directly support the conclusion. For that reason, E is out.
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Re: Analyst: The pace of technological development brings a  [#permalink]

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New post 15 Sep 2013, 10:04
mahtabmd wrote:
If this was a conclusion question , B as an answer was justified, I don't see B strengthening the conclusion/main assertion.



Its from MGMAT prep. But i still do not agree with OE. The argument said that the organizations should wait till the sales start to decline before announcing a newer model.

Option B says that the organizations should advertise when sales are still strong. How on earth does it strengthen the argument :?:

Any expert opinions for this one ?
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Re: Analyst: The pace of technological development brings a  [#permalink]

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New post 14 Oct 2013, 11:41
kellogs4toniee wrote:
Much thanks in advance:

Question:

Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success. But announcing new technology too soon after the introduction of a successful device can backfire. Once consumers hear about the new device, they may stop buying the one currently on sale. 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.

Which of the following, if true, would best support the analyst's main assertion?

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

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.

C. Many consumers are unable to determine whether new technology is superior to current technology.

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.

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


--------------------------------------


The answer is B.

I understand this is a strengthen the argument question. But I would think that because media outlets often report about new devices even if sales are going strong, then regardless if the company waits until sales of old technology has declined, the plan might still backfire because media outlets will have already posted about the new technology. That if anything weakens the argument to me.

Can someone explain why B is the right answer?

Thank you.


Hey all, just wanted to let you know I chose (E) for the following reason.
We are being told that if a tech company announces a product too son it can back fire because customers would stop buying the new product. Having said that, the author says that a better plan might be to wait until they decline.

Now after reading this, use your common sense. For example, think of an Apple or a Samsung, you name it.
Now, why do these guys don't follow this strategy? Why do they "canibalize" to some extent some of their old devices when they launch every year or so new devices constantly. Wouldn't it be better to let the demand start to decline to then throw a new Iphone or Galaxy and then boost their sales?

The reason why they do it, is because if they don't another competitor will and will take customers away from them. Ok ok, I understand that we should stick to the stimulus and not make real life inferences, but it makes sense doesn't it?

Let's analyze other answer choices shall we?

A. New technology often becomes less expensive after an initial surge in sales. Out of scope
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. Ok media outlets do it, but are tech companies similar to media outlets including television programs and magazines? We can't assume that

C. Many consumers are unable to determine whether new technology is superior to current technology. Hmm, let me think about this one for a minute. This in fact weakens it. If they are unaware then there is no reason to wait. They won't really care, they will just buy anything!

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases. Some do, some don't. This lacks substance
E. Consumers tend to be loyal to technology companies whose products they enjoy using. I think this is it. If they are loyal then you can wait until demand declines and just then throw something big out there for customer to buy again and again and again..

Happy to share some thoughts with experts. Would be nice also if a MGMAT tutor explains this one
Thank you all very much in advance
Cheers
J :)
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Re: Analyst: The pace of technological development brings a  [#permalink]

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New post 16 Jan 2014, 13:09
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jlgdr wrote:
kellogs4toniee wrote:
Much thanks in advance:

Question:

Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success. But announcing new technology too soon after the introduction of a successful device can backfire. Once consumers hear about the new device, they may stop buying the one currently on sale. 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.

Which of the following, if true, would best support the analyst's main assertion?

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

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.

C. Many consumers are unable to determine whether new technology is superior to current technology.

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.

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


--------------------------------------


The answer is B.

I understand this is a strengthen the argument question. But I would think that because media outlets often report about new devices even if sales are going strong, then regardless if the company waits until sales of old technology has declined, the plan might still backfire because media outlets will have already posted about the new technology. That if anything weakens the argument to me.

Can someone explain why B is the right answer?

Thank you.


Hey all, just wanted to let you know I chose (E) for the following reason.
We are being told that if a tech company announces a product too son it can back fire because customers would stop buying the new product. Having said that, the author says that a better plan might be to wait until they decline.

Now after reading this, use your common sense. For example, think of an Apple or a Samsung, you name it.
Now, why do these guys don't follow this strategy? Why do they "canibalize" to some extent some of their old devices when they launch every year or so new devices constantly. Wouldn't it be better to let the demand start to decline to then throw a new Iphone or Galaxy and then boost their sales?

The reason why they do it, is because if they don't another competitor will and will take customers away from them. Ok ok, I understand that we should stick to the stimulus and not make real life inferences, but it makes sense doesn't it?

Let's analyze other answer choices shall we?

A. New technology often becomes less expensive after an initial surge in sales. Out of scope
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. Ok media outlets do it, but are tech companies similar to media outlets including television programs and magazines? We can't assume that

C. Many consumers are unable to determine whether new technology is superior to current technology. Hmm, let me think about this one for a minute. This in fact weakens it. If they are unaware then there is no reason to wait. They won't really care, they will just buy anything!

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases. Some do, some don't. This lacks substance
E. Consumers tend to be loyal to technology companies whose products they enjoy using. I think this is it. If they are loyal then you can wait until demand declines and just then throw something big out there for customer to buy again and again and again..

Happy to share some thoughts with experts. Would be nice also if a MGMAT tutor explains this one
Thank you all very much in advance
Cheers
J :)


I love such questions where you are convinced the answer is North while the OA says it's South. These questions make us sit up and pay attention and in the process learn something new.
Like you I too thought the answer was E, it surely supports the assumption, but does the question stem asks us to support the assumption or assertion ? :shock:

When the term assertion struck me I turned to Google to find the difference between Assumption and Assertion and surely there was a very subtle difference.

Assertion - Assert implies stating confidently without need for proof or regard for evidence, implies conviction based on experience, faith and evidence

Assumption- fact or statement (unstated) taken for granted or accepted as true without proof, based on feeling

Now if this was a support the Assumption question the answer would have been E. But since this is a support the Assertion question let us find out what is the Analyst's main assertion.

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.
This states that companies must change the present trend which is to announce a new device while the sale of old device is still going strong.

From the above analysis we can see B is a clear winner as it states the current trend.


WOW !!! today was a success, I actually learned something :-D
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Re: Analyst: The pace of technological development brings a  [#permalink]

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New post 31 Mar 2014, 10:22
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nverma wrote:
Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success. But announcing new technology too soon after the introduction of a successful device can backfire. Once consumers hear about the new device, they may stop buying the one currently on sale. 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.

Which of the following, if true, would best support the analyst's main assertion?

(A) New technology often becomes less expensive after an initial surge in sales.

(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.

(C) Many consumers are unable to determine whether new technology is superior to current technology.

(D) Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.

(E) Consumers tend to be loyal to technology companies whose products they enjoy using.

ConnectTheDots wrote:
Hi Mike,

Could you please help on this one ?
in B : If the media reports about the new technology, won't it affect the current sales? The argument says, yes it will affect and hence the company should not announce. Then how this statement supports ?

Thanks and Regards!

Dear ConnectTheDots,
I'm happy to respond to your p.m.

The OA to this question is (B). This is a very well-written question, as MGMAT questions typically are.

The prompt discusses a problem --- if the arrival of the new technology is announced too soon, while sales of the old product are high, it will cut into those sales. Let's say, for the sake of argument, that Company X is selling a device in version 3.0, and at the beginning of July, they will be able to launch the sale of version 4.0. When should they announce that 4.0 is on the way? It doesn't matter for sales of 4.0 --- starting in July, they will make a ton of money on 4.0. But they also want to maximize their sales from now until July, the sales of 3.0, and if they announce right away that 4.0 is coming, most people will no longer be interested in buying 3.0. An early announcement will make their pre-July sales decline.

That's the problem. The prompt is mostly about clarifying this problem. The only recommendation is the weak statement: don't announce too early: "wait until purchases of the old device have begun to decline."

Now, what does (B) say?
(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.
If this is true, this would amplify the problem. If Company X makes an early announcement, and immediately the media broadcasts this announcement to the four corners of the earth, all while sales of the old device were still high, then this would make the problem more pronounced. This absolutely makes clear why it would be such a spectacularly bad idea for Company X to make their announcement too early. The analyst was taking about a problem, and choice (B) makes clear: yes, it's a big problem. If the company announce too early, the media will amplify it, and sales of the old technology will plummet. That's a big problem. This makes it even more clear --- the company should not make the announcement, so sales of the old product don't decline prematurely. In that sense, (B) is very strong support --- it confirms that there is a big problem here, that the analyst is addressing.

Does this make sense?
Mike :-)
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Re: Analyst: The pace of technological development brings a  [#permalink]

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New post 19 Sep 2014, 02:39
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 03 Jan 2015, 01:40
The conclusion focuses on the company - not the consumers.

Conclusion = the company should wait for sales to begin to decline before they announce a new product.

B allows the company to know when sales will decline (after a media report). If a media report will slow sales, the company can then influence the media report (think of iphone releases - it can be a well guarded secret, or it can be leaked intentionally) OR it can wait for a media report to influence sales.

Therefore, because we know when the decline will occur, we can release the new product after the media report, and after sales have begun to decline.
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Re: Analyst: The pace of technological development brings a  [#permalink]

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New post 19 Aug 2015, 14:11
Analyst: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success.

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

Once consumers hear about the new device, they may stop buying the one currently on sale.

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.


I eliminated options to B and E.

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.

This just informs us the way customers get informed of the new products.
But nowhere it says that sales will decline further because of this event.
Even in argument it says that announcement of new technology after the introduction of a successful device can backfire.
It says can but i don't think it is must or will.


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

If customers are not loyal to technology companies then they need not wait until purchases of the old device have begun to decline.
If the customers are loyal then only they will wait since they don't want the sales of their old product to decrease.


I am not able to understand why B is right and E is wrong.
Can someone clear my confusion?
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Re: Analyst: The pace of technological development brings a &nbs [#permalink] 19 Aug 2015, 14:11

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