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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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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.
[Reveal] Spoiler: OA

Last edited by Zarrolou on 07 Aug 2013, 22:06, edited 1 time in total.
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 15 Aug 2007, 04:13
Premis 1: The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success.
Premis 2:But announcing new technology too soon after the introduction of a successful device can backfire.
Premis 3: Once consumers hear about the new device, they may stop buying the one currently on sale.
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.

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. -- even the prices decline the sale might keep its pace with larger quantities sold so doesnt support the assertion

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 one supports the assertion and gives example.

Many consumers are unable to determine whether new technology is superior to current technology. - nothing to do with commercialization

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

Consumers tend to be loyal to technology companies whose products they enjoy using. -- no even they are loayal. there is no guarantee that they buy two of the same device one with upgraded features.
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 16 Aug 2007, 04:43
ajisha 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?

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.


I agree with B. If customers know about the introduction of new item they may wait for the new technology to come so that they can invest in the latest device.

A. - If new technology becomes less expensive surely the sales will be maintained.

C. is out of scope. stimulus is talking about the introduction of new technology. not whether customers will be able to determine or not.

D. the frequency of purchase is not a concern.

E. Stimulus is talking about the product from the same company.
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 16 Aug 2007, 11:47
main assertion:
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.

we are asked to find the answer that best supports this assertion.

besides the two choices below, the rest are irrelevant.

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. <-- at first glance, this looks like the answer but it's simply restating the analyst's assumption that an announcement in the media regarding new product would stop consumers from purchasing an old product. this is not necessarily as assertion.

Many consumers are unable to determine whether new technology is superior to current technology. <-- this is what the analyst is asserting, that consumers are not good at differentiating between superiority of past and present technology which is why they will rush to buy a newer product assuming that new= better. hence, this should be the answer.

very curious to know the OA.
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Re: Analyst: The pace of technological development brings a [#permalink]

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OA is B

But even knowing OE, I do not still feel confident :?

OE:
The conclusion is that a company should wait until purchases of an old device have begun to decline before announcing a new device. The basis for this claim is that consumers stop buying the old device. We are asked to strengthen the argument.

(A) The typical drop in the price of new technology does not influence whether a company should wait until sales of an old technology begin to decline before introducing a new one.

(B) CORRECT. This choice states that media outlets such as television and magazines often report on the planned introduction of new devices while sales of old devices are still strong. The argument requires that consumers "hear about the new device"; stories in the media provide a means for consumers to do so.

(C) If many consumers are unable to determine the superiority of new technology, then they might be less swayed to wait for a new, recently announced device than otherwise. As a result, this claim may be seen to weaken the analyst's assertion.

(D) The number of technology purchases per year does not directly relate to this argument. The argument is about waiting until the consumer demand declines before announcing a new technology. However frequently consumers typically purchase technology, some will be ready to buy the old device when news of the upcoming device gets out -- and according to the argument, this news will cause some of those consumers to wait.

(E) The passage makes no mention of whether the technologies belong to the same company or different companies.
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 13 Apr 2010, 00:58
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Tricky question.

Only B suffice by PoE, but still its two parts are not in sync as per the 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.

Rest are out of scope.
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Re: Analyst: The pace of technological development brings a [#permalink]

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B should be.

Reason:

Premise 1: If announce too soon -> backfire
Premise 2: If consumers hear abt the new device -> may stop buying
Conclusion: Should wait till the old one fades

Only B connects the two premises, i.e. the company announcement reaches consumers through media outlets. If the company announcement doesn't reach consumers at all, the conclusion won't hold.
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 15 Apr 2010, 08:52
B

It explains how consumers might hear about a new device while the old device is still selling. If, as the author argues, the company does not release information about its upcoming new product, the media will not have anything to report... and, therefore, the consumers won't know about the new device yet. This supports the author's conclusion that the company should delay the news of new devices

Answer choice (E) states that "Consumers tend to be loyal to technology companies whose products they enjoy using." However, loyalty to a company does not necessarily lead to the backfire of strategy.

I choose B

What's OA?


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

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New post 15 Apr 2010, 23:58
Got it wrong ...
anyone seeking more explanation see this:
http://www.manhattangmat.com/forums/ana ... -t403.html
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 23 Jun 2011, 10:48
Guys, look at B like this - B is trying to state that media outlets help in passing a company's announcement of a new technology to the masses and they often do so when the old devices are still on sale. From this I know that if a company desires to announce upcoming sales of a new device - it will surely reach the masses and hence become detrimental to the sales of older products. Hence, we have support for the analysts main point that the company "should wait until purchases of the old device have begun to decline."

Hope this helps.
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 07 Aug 2011, 10:40
(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.

B is the only option that strengthens the notion that announcing a new iteration could impact the previous versions sales. If the media outlets announced the new version after the previous versions sales already started to decline it wouldn't be that impactful on overall sales. Thus the media is prematurely announcing new products impacting current generations sales figures.
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 01 Sep 2011, 01:54
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.

Please explain. :boom

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

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

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New post 21 Mar 2012, 02:07
Analyst: 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.
--> no talk of technology getting less or more expensive its just the decline or surge of sales, hence its 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.
--> only relevant option strengthening that conclusion could stand because as per B the information is provided and hence the trend is observed

C. Many consumers are unable to determine whether new technology is superior to current technology.
--> it is irrelevant. even if one say its affecting then thats:weakening.

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
--> nature of purchases is out of scope

E. Consumers tend to be loyal to technology companies whose products they enjoy using.
-->okay its totally irrelevant
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 22 Mar 2012, 18:28
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.- Irrelevant

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.- As a result ppl hold purchase to wait it out for the new tech- Hence in support of given statement.

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

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

E. Consumers tend to be loyal to technology companies whose products they enjoy using.- irrelevant
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 26 Jun 2012, 07:12
IMO B
the only problem in introducing a new tech product into the market is that it would hamper the sales of already existing product (introduced recently and making good money).
The "planned introduction" of the new product will create a new interest among the consumers( which will give a way to the upcoming product) also the sales of existing products will not decline.

This could be an ideal GMAT question because i believe that it is sensible enough and forces the test takers to think pragmatically.(what if you are launching the product in similar situation or how will you react as a consumer).

Hope this works.
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Re: Analyst: The pace of technological development brings a [#permalink]

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New post 26 Jun 2012, 11:36
just use POE,

we need to find "why the companies should wait till the sales of present technology product declines"?

because : If the reports about the new product were to come out in TV and magazines while the present product sales are still strong,
people would stop buying the present product and would wait for the new one to come. Hence it will affect the sales of the present product, sales of which could have still gone on for quite some time!

take the case of IPADs!
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Re: Analyst: The pace of technological development brings a [#permalink]

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Guys,

The key to answering this question correctly is to focus on 2 key areas of the argument.

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.

There are a couple of things that you need to take away from the argument:

1. The argument is about device sales - re-enforced by the statement "they may stop buying the one currently on sale". The argument is not about a product line. In other words, if a iphone 5 is announced too soon after iphone4S, the sales of iphone4S - a particular iteration of the product line will go down.

2. Why would these sales go down? If consumers hear about the announcement (notice the use of word "once") they "may" decide to wait for the next iteration.

What would strengthen the argument?

There are two things that could strengthen the argument:

1. Evidence that it is likely that consumers will hear about new product announcements once they are made [choice B does exactly that]
2. Evidence that once consumers hear about new product announcements, a good proportion of them push of purchases [none of the choices do that]

What about choice D?

Choice D is kind of irrelevant. Even if I buy phones multiple times a year, I might not buy 4S if I know iphone 5 is coming.

Let me know if this helps.

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

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New post 29 Jun 2012, 20:55
walker wrote:
MGMAT

I also can't digest the fact that B is the correct answer even after reading OE :?


Hi Walker,
First of all thank you for such a nice question. It's kind of weird that I almost always answer the hardest questions in verbal right and in a shorter time than it's needed for a simple question! But, for normal question I need more time and the probability of getting a right answer is lower! Maybe it's interesting for you to hear that I always gained higher marks in tougher courses such as quantum mechanics and electromagnetism!! (As I graduated in Physics), and here is my reason for choosing B:
To me the word “wish” plays a critical role in order to illustrate that companies currently suffer form an issue which is the advertising of new technology-based devices simultaneously with older devices. To strengthen (support) this assertion B is parallel to what is stated in terms of implying the same issue by showing another scenario. “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 situation induce the issue to be unsolved.
E is wrong because if consumers continue their loyalty by buying new technology devices, they will buy the last technology launched. Imagine you are a patronize customer of Apple; if they launch iPad2 and simultaneously they announce that two month later they will unveil the most powerful tablet in the world (supposed this as an advertisement) and they called it iPad3, you as a loyal customer already bought iPad2, cause you are a loyal customer and buy every new device of Apple, and you also will go to buy iPad3 to stay loyal to Apple. Therefore, Apple won’t face any issue and it contradicts to what is implied by analyst.
Hope to clarify something.
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Re: Analyst: The pace of technological development brings a [#permalink]

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Premise 1) The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success.
Premise 2)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.

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.

Well its a good example with respect to iphone series of cell phones. I hoe the guys at apple would also be following the same strategy.

Since, the author said once consumers hear about new technology, they might opt for newer one rather the old technology. The conclusion states unless the sales of products are not declining ,advertisement of new prods. should not be done.
A casual relation ship can be established as follows:

New product announcement ---leads to----> decline in sale of old product.
advertisement -------lead to---->announcement of new product.
advertisement-------lead to------> decline in sale of old product.

The argument is to hold the advertisement till the sales of old product starts to decline.

My reasoning-

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.--well broadly speaking it will deline the sales of old products but it has nothing to do with the advertisement.Out of scope ans.

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 is what causal relation ship tells us, that advertisement will lead to decline in old product sales, hence, it justifies the authors conclusion that advertisement should not be done till sales start to decline.

c) Many consumers are unable to determine whether new technology is superior to current technology.-Irrelevant

d) Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.-This again does not affects the argument in any way.(some may be buying more or some may be buying less but no mention of old or new products)

e) Consumers tend to be loyal to technology companies whose products they enjoy using.(this points out that sales wont be affected by competition) irrelevant.
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Re: Analyst: The pace of technological development brings a   [#permalink] 09 Sep 2012, 03:39

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