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# Analyst: The pace of technological development brings a constant strea

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Joined: 06 Feb 2016
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Re: Analyst: The pace of technological development brings a constant strea  [#permalink]

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24 Feb 2016, 10:27
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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

I don't understand Manhattan's explanation, since I am asked to find a statement which supports the main assertion, which is that the announce of new technology results in decline of sales in old devices. My first guess was D), since I thought if consumers do not buy devices very often, they will either wait for the new technology or not buy a new one in case they have already bought an old device.
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Re: Analyst: The pace of technological development brings a constant strea  [#permalink]

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24 Feb 2016, 12:48
nilem94 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

I don't understand Manhattan's explanation, since I am asked to find a statement which supports the main assertion, which is that the announce of new technology results in decline of sales in old devices. My first guess was D), since I thought if consumers do not buy devices very often, they will either wait for the new technology or not buy a new one in case they have already bought an old device.

Please use spoilers ( As I have done ) to hide the answer and your explanations, in that way people will be able to solve the problem and guide you better , besides posting the answer after the question spoils the game, anyways welcome to GMATCLUB.

Lets try ,the options -

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

Cost is not the consideration for this question, the stimulus talks about sales of new technology after announcing a new technology

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

If consumers are unable to determine whether new technology is superior /inferior they will not differentiate between purchase of old technology and new technology.

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

Ok, now tell me how much does some represents ?

Some can be any number/percentage from 1 - 100 ( out of 100), thus the other ( as in this case )will depend entirely on the value of some.

1. Some = 99 , Others =1
2. Some = 10 , Others = 90

Now reconstruct the sentence -

1. Surveys have shown that 99 consumers make only one or two technology purchases per year, whereas 1 customer make more frequent purchases.

This means if a consumer is aware of a new technology 99 consumers will wait for the new technology to come before making the purchase decision.

2. Surveys have shown that 1 consumer make only one or two technology purchases per year, whereas 99 customers make more frequent purchases.

If consumers make frequent purchases they will have no time to wait for the new technology thus announcement of new technology will not reduce sale of old technology products.

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

Loyalty to Tech companies is not under consideration, we are talking about new technology products.

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 sentence tells us that if Tech companies advertise about new technology while the sale of old devices are still strong then it can adversely affect sales of old Technology products.

Thus out of the given options and through elimination process only (B) remains.

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

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11 Jul 2018, 08:36
1
1
2
The given argument can be written as:
After, New technology announcements, people stop buying old devices.
So, companies have to wait until old devices sales decrease and then announce.
We can conclude that new technology announcements need to wait.
We need to strengthen this point.

A. New technology often becomes less expensive after an initial surge in sales. - Out of focus.
It is telling that after an initial increase in sales, then new technology becomes less expensive.
If it is true then there is no need to wait for announcements as anyhow it will fall after some time.
It is not strengthening the point.

C. Many consumers are unable to determine whether new technology is superior to current technology. - Out of focus
Here consumers are confused between technologies.
So, what? It does not strengthen.

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases. - Out of focus.
We do not know what "some" means here and we are not concerned about the number of consumers buying the products.
This does not strengthen the point.

E. Consumers tend to be loyal to technology companies whose products they enjoy using. - Out of scope.
Loyalty towards technology - does not indicate that people buy each and every product from them.
They just indicate that whatever product they buy it is of that company.
It nowhere strengthens the point.

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 these programs are speaking about the introduction, a lot of people get to know and so they don't buy old devices and instead wait for a new one.
So, we need to wait before we give announcements.
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Re: CR Revision: Analyst: The pace of technological development brings a  [#permalink]

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26 Oct 2018, 11:54

I was caught between option B and C.
I would like to present my understanding of argument and my analysis if that might be helpful for you to identify gaps in my understanding .

Well if look at the argument

Analyst presents a general info:
The speed with technology is developing , there is constant flow of new devices with these technologies into market, and many of these devices enjoy commercial success.

Then he states a claim:
Announcement of any new technology soon after one has introduced a successful device can be do bad.
Then he presents reason for his claim:
Once the buyer come to know about the new technology he may want to wait until the recently devices with recently announced technology is available for sale.
Finally analyst concludes:
So analyst recommends that the announcement of new technology should be made after there is decline in sales of devices with previous technology.

What assumptions is analyst making while concluding his arguments.
1. The new technology that the company will introduce will be upgraded version of current version of current technology with several other various benefits.
2. Once they come to know about announcement of the new technology they would actuality believe the announcements are true and possible .
3. No other company would announce a advanced technology in the mean time when their devices with successful technology are having strong sales.

So if i have to strengthen the argument a new a information where we come to know that announcement was made and sales have declined would do the job.

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.

So how does this strengthen my argument. It does not indicate that once the announcement were made the sales were hit. If i take this assumption along ( hearing the news announcement many consumers postponed their buying ) it would be strengthen the argument of analyst.

However for it to be strengthener i should make this assumption.

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

While C also is incomplete as it says people couldn't determine weather new tech is better than current tech. But how did thy come to know about the new technology.

However, If this is the case then did they deffer buying.If yes then it strengthens else weakens.
But since this option all it says it creates doubt in minds of many consumers in a way it strengthens the argument.

Can you help me identify my gaps on this question.

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

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29 Oct 2018, 03:36
souvik101990 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.

Premises:
Tech development brings new devices and many of them enjoy commercial success.
But if consumers hear about the new device, they may stop buying the one successfully currently on sale.

Conclusion: 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.

Conclusion is about the company not announcing the new device.

A. New technology often becomes less expensive after an initial surge in sales.
How does the reduction in price affect the company, we don't know. Do the revenues increase because more people buy cheaper product or is it better to introduce new product at this time to have better revenues later (if people defer buying now), we don't know. So we cannot say whether its good for the company to announce or not announce the new tech.

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 a reason why companies should not announce a new product while sale of old ones is still strong. The media houses will report about the new product to the public while the sales of old devices are still strong and people may stop buying. It strengthens our conclusion that the company should not announce new tech too soon.

C. Many consumers are unable to determine whether new technology is superior to current technology.
We just know that consumers often hold on for new tech. Why they do that is irrelevant. If they are unable to determine the superiority, it is probably not because of quality that they defer their purchase. In any case, it doesn't impact our conclusion that companies should not announce new products too soon.

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
This just says that there are all kind of consumers - frequent buyers as well as seldom buyers. This doesn't impact our conclusion.

E. Consumers tend to be loyal to technology companies whose products they enjoy using.
Again, just goes to show that companies have their loyalists. This doesn't impact our conclusion.
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Re: CR Revision: Analyst: The pace of technological development brings a  [#permalink]

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29 Oct 2018, 03:45
Probus wrote:

I was caught between option B and C.
I would like to present my understanding of argument and my analysis if that might be helpful for you to identify gaps in my understanding .

Well if look at the argument

Analyst presents a general info:
The speed with technology is developing , there is constant flow of new devices with these technologies into market, and many of these devices enjoy commercial success.

Then he states a claim:
Announcement of any new technology soon after one has introduced a successful device can be do bad.
Then he presents reason for his claim:
Once the buyer come to know about the new technology he may want to wait until the recently devices with recently announced technology is available for sale.
Finally analyst concludes:
So analyst recommends that the announcement of new technology should be made after there is decline in sales of devices with previous technology.

What assumptions is analyst making while concluding his arguments.
1. The new technology that the company will introduce will be upgraded version of current version of current technology with several other various benefits.
2. Once they come to know about announcement of the new technology they would actuality believe the announcements are true and possible .
3. No other company would announce a advanced technology in the mean time when their devices with successful technology are having strong sales.

So if i have to strengthen the argument a new a information where we come to know that announcement was made and sales have declined would do the job.

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.

So how does this strengthen my argument. It does not indicate that once the announcement were made the sales were hit. If i take this assumption along ( hearing the news announcement many consumers postponed their buying ) it would be strengthen the argument of analyst.

However for it to be strengthener i should make this assumption.

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

While C also is incomplete as it says people couldn't determine weather new tech is better than current tech. But how did thy come to know about the new technology.

However, If this is the case then did they deffer buying.If yes then it strengthens else weakens.
But since this option all it says it creates doubt in minds of many consumers in a way it strengthens the argument.

Can you help me identify my gaps on this question.

Probus

I have provided my analysis above.

As for your analysis, I do not understand this:

What assumptions is analyst making while concluding his arguments.
1. The new technology that the company will introduce will be upgraded version of current version of current technology with several other various benefits.
2. Once they come to know about announcement of the new technology they would actuality believe the announcements are true and possible .
3. No other company would announce a advanced technology in the mean time when their devices with successful technology are having strong sales.

The author doesn't assume any of these. We are given that people hold out for new tech. Why, we don't know. So 1 is not an assumption.
Companies don't make false announcements about their upcoming products.
Even if another company announces a new tech, this company announcing a new tech is a problem just like before. Some people may hold out for the other company's tech but some, who wanted to buy this company's current device may hold out for this company's new device. All in all, the new product announcement will slow the sale of this company's current device.

(B) is correct because the conclusion talks about the company not announcing. (B) tells you that such an announcement will reach the public so be warned.
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Re: CR Revision: Analyst: The pace of technological development brings a  [#permalink]

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29 Oct 2018, 07:33
Here we have strength the author's assertions.

So, first, understand the assertion.
Assertion is emphatically stated declaration.
"Once consumers hear about the new device, they may stop buying the one currently on sale." is assertion here.

Option B correctly reinforce the author's assertion.
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Re: Analyst: The pace of technological development brings a constant strea  [#permalink]

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21 Jul 2019, 16:56
The argument is that companies should wait until sales decline till they release a new product.
This is because once consumers hear about the new product, they MAY stop buying it.

We are asked what would best support the argument.

A is incorrect because it merely states a general fact that does not tie into the argument.

I'll be honest, I really can't see why B supports the argument.
We are told that Media outlets report on the planned introduction of new devices while the sales are still strong, but we aren't given any inclination as to how consumers react, so it's hard for me to understand why B is correct.

Are to we assume that the given cause (public news release) always has its intended effect (decline in sales)?

GMATNinja if you have time could you kindly help me out?
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Re: Analyst: The pace of technological development brings a constant strea  [#permalink]

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24 Jul 2019, 05:47
Am i the only one who thinks E is better?
E says that even if any other company provides new tech, people will still prefer X b'cause they are loyal to x.
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Re: Analyst: The pace of technological development brings a constant strea  [#permalink]

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31 Jul 2019, 22:53
I am still not clear why the A is the correct answer. Can someone please explain clearly?
Re: Analyst: The pace of technological development brings a constant strea   [#permalink] 31 Jul 2019, 22:53

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