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# The pace of new technology brings a constant stream of new

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The pace of new technology brings a constant stream of new [#permalink]

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21 Dec 2009, 21:13
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Question Stats:

55% (01:37) correct 45% (01:37) wrong based on 136 sessions

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The pace of new technology brings a constant stream of new devices to the market and many of them enjoy commercial success.But analysts warn that announcing new technology too soon after the introduction of a successful device can backfire: consumers may resent feeling pressured to spend money to replace a device they have just purchased, even if the new technology is clearly superior.The result is that consumers either do not buy the old device in anticipation of the new one, or they do not buy t he new device out of resentment over having already spent their money on the old one. So if a company wishes to introduce 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 claims made above?

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

b. Media outlets such as television and magazines often report on the planned introduction of new devices while sales of old devices are still strong.

c• Consumers are usually able to determine whether new technology is superior to current technology.

d• Surveys have shown that consumers prefer to make only one or two technology purchases per year.

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

i am surprised by OA , will let u knw soon
[Reveal] Spoiler: OA

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Re: The pace of new technology brings a constant stream of new [#permalink]

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21 Dec 2009, 22:51
Good one.

IMO C.
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Re: The pace of new technology brings a constant stream of new [#permalink]

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22 Dec 2009, 00:50
E for me

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Re: The pace of new technology brings a constant stream of new [#permalink]

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22 Dec 2009, 05:54
Not too sure

Please can someone post Expl. along with the OA...

Many Thanks....

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Re: The pace of new technology brings a constant stream of new [#permalink]

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22 Dec 2009, 10:27
Tough one-
C looks vaguely correct, but honestly I am clueless.
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Re: The pace of new technology brings a constant stream of new [#permalink]

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22 Dec 2009, 11:55
On second thought I pick B
Reason: Inconsistent punctuation after the alphabet choice .
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Re: The pace of new technology brings a constant stream of new [#permalink]

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22 Dec 2009, 12:02
E...
if they are loyal they will stick to the coy and buy its new technology when it comes...
but if they are not they will easily switch over to any competitors product.
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Re: The pace of new technology brings a constant stream of new [#permalink]

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22 Dec 2009, 19:08
This question is tough and i think in 700 bracket

Anyway , my take is B

Conclusion:-
if a company wishes to introduce a new device, it should wait until purchases of the old device have begun to decline.
Option B suggests that introducing planned introduction of new devices while sales of old devices are still strong will lead to consumers resentment and impact on sales
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Re: The pace of new technology brings a constant stream of new [#permalink]

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22 Dec 2009, 22:35
C bcoz

consumers may resent feeling pressured to spend money to replace a device they have just purchased, even if the new technology is clearly superior

A Consumer would try to replace a device if he or she thinks it is outdated. This means that the consumer would have some knowledge of the technology that he or she is using now to that is currently available in the market.

OA ??
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Re: The pace of new technology brings a constant stream of new [#permalink]

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23 Dec 2009, 01:05
OA is B

hope explanation in this link will help u , the way it helped me to understand the logic

http://www.beatthegmat.com/pace-of-new- ... 49567.html
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The pace of new technology brings a constant stream of new [#permalink]

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10 May 2010, 01:34
The pace of new technology brings a constant stream of new devices to the market and many of them enjoy commercial success.But analysts warn that announcing new technology too soon after the introduction of a successful device can backfire: consumers may resent feeling pressured to spend money to replace a device they have just purchased, even if the new technology is clearly superior. The result is that consumers either do not buy the old device in anticipation of the new one, or they do not buy the new device out of resentment over having already spent their money on the old one. So if a company wishes to introduce 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 claims made above?

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

b. Media outlets such as television and magazines often report on the planned introduction of new devices while sales of old devices are still strong.

c· Consumers are usually able to determine whether new technology is superior to current technology.

d· Surveys have shown that consumers prefer to make only one or two technology purchases per year.

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

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Re: The pace of new technology brings a constant stream of new [#permalink]

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10 May 2010, 07:21
RaviChandra wrote:
The pace of new technology brings a constant stream of new devices to the market and many of them enjoy commercial success.But analysts warn that announcing new technology too soon after the introduction of a successful device can backfire: consumers may resent feeling pressured to spend money to replace a device they have just purchased, even if the new technology is clearly superior.The result is that consumers either do not buy the old device in anticipation of the new one, or they do not buy t he new device out of resentment over having already spent their money on the old one. So if a company wishes to introduce 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 claims made above?

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

b. Media outlets such as television and magazines often report on the planned introduction of new devices while sales of old devices are still strong.

c· Consumers are usually able to determine whether new technology is superior to current technology.

d· Surveys have shown that consumers prefer to make only one or two technology purchases per year.

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

Hi !!!!...

Didnt see any answers given for the ques.

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Re: The pace of new technology brings a constant stream of new [#permalink]

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10 May 2010, 07:55
RaviChandra wrote:
The pace of new technology brings a constant stream of new devices to the market and many of them enjoy commercial success.But analysts warn that announcing new technology too soon after the introduction of a successful device can backfire: consumers may resent feeling pressured to spend money to replace a device they have just purchased, even if the new technology is clearly superior.The result is that consumers either do not buy the old device in anticipation of the new one, or they do not buy t he new device out of resentment over having already spent their money on the old one. So if a company wishes to introduce 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 claims made above?

a· New technology often becomes less expensive after an initial surge in sales.: Not relevant

b. Media outlets such as television and magazines often report on the planned introduction of new devices while sales of old devices are still strong. Against conclusion

c· Consumers are usually able to determine whether new technology is superior to current technology. Not relevant

d· Surveys have shown that consumers prefer to make only one or two technology purchases per year. Support

e· Consumers tend to be loyal to technology companies whose products they enjoy using.Not relevant

Conclusion is "consumers either do not buy the old device in anticipation of the new one, or they do not buy t he new device out of resentment over having already spent their money on the old one"

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Re: The pace of new technology brings a constant stream of new [#permalink]

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10 May 2010, 08:22
no its not D

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Re: The pace of new technology brings a constant stream of new [#permalink]

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10 May 2010, 12:09
bangalorian2000 wrote:
RaviChandra wrote:
The pace of new technology brings a constant stream of new devices to the market and many of them enjoy commercial success.But analysts warn that announcing new technology too soon after the introduction of a successful device can backfire: consumers may resent feeling pressured to spend money to replace a device they have just purchased, even if the new technology is clearly superior.The result is that consumers either do not buy the old device in anticipation of the new one, or they do not buy t he new device out of resentment over having already spent their money on the old one. So if a company wishes to introduce 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 claims made above?

a· New technology often becomes less expensive after an initial surge in sales.: Not relevant

b. Media outlets such as television and magazines often report on the planned introduction of new devices while sales of old devices are still strong. Against conclusion

c· Consumers are usually able to determine whether new technology is superior to current technology. Not relevant

d· Surveys have shown that consumers prefer to make only one or two technology purchases per year. Support

e· Consumers tend to be loyal to technology companies whose products they enjoy using.Not relevant

Conclusion is "consumers either do not buy the old device in anticipation of the new one, or they do not buy t he new device out of resentment over having already spent their money on the old one"

Bangalorian, I think you misunderstood the conclusion. I believe the conclusion is "So if a company wishes to introduce a new device, it should wait until purchases of the old device have begun to decline."

We need to find an answer choice that will support the claim that companies should introduce a new device only when sales of the old device are decreasing.

A: not relevant
B: it says that media announce the plans for new devices when sales of old devices are still strong. The word announce is very important here because it means that plans for new devices are announced to consumers who will then stop purchasing the old device to wait for the new (as the argument suggests). Sales of the old device will drop and it will be a good time to launch the new device soon. Correct answer
C: completely irrelevant
D: that doesn't support neither weakens the argument's conclusion. Knowing that consumers make only one or two pruchases a year doesn't mean that they won't buy a new device after having bought an old one as we do not know what timeline is between the old and new
E: that would rather weaken

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Re: The pace of new technology brings a constant stream of new [#permalink]

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10 May 2010, 18:33
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Hey All,

I was private messaged about this question, so I'm here to do my best with it. I've seen it before, but it's never been one of my favorites. Anyone know where it's from (maybe it's MGMAT!). Let's take a look:

The pace of new technology brings a constant stream of new devices to the market and many of them enjoy commercial success. But analysts warn that announcing new technology too soon after the introduction of a successful device can backfire: consumers may resent feeling pressured to spend money to replace a device they have just purchased, even if the new technology is clearly superior. The result is that consumers either do not buy the old device in anticipation of the new one, or they do not buy t he new device out of resentment over having already spent their money on the old one. So if a company wishes to introduce a new device, it should wait until purchases of the old device have begun to decline.

Conclusion: If introducing a new device, don't ANNOUNCE until old device purchases down.
Premise: Consumers don't want to buy new tech soon after old tech. This means they don't buy old tech if they know new tech is coming.

We want to strengthen this argument.

a· New technology often becomes less expensive after an initial surge in sales.
PROBLEM: We don't actually care about the amount of money made, only all the sales.

b. Media outlets such as television and magazines often report on the planned introduction of new devices while sales of old devices are still strong.
ANSWER: If media outlets report new devices even while sales of old devices are strong, then announcing it is super dangerous, because word will get out and people will stop buying the old product. Best not to announce until old sales have gone down, because then the coverage won't hurt the old device sales.

c· Consumers are usually able to determine whether new technology is superior to current technology.

d· Surveys have shown that consumers prefer to make only one or two technology purchases per year.
PROBLEM: This strengthens the idea of not releasing technology too often, not the notion that one should wait to announce something until old sales are down.

e· Consumers tend to be loyal to technology companies whose products they enjoy using.
PROBLEM: This has nothing to do with loyalty at all. The question is if people will keep buying new products from the same company if they know that something better is coming.

Hope that helps!

-tommy
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11 May 2010, 09:27
I'll got with B
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18 May 2010, 23:28
Is it D?

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19 May 2010, 02:58
B must be the answer ....

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28 May 2010, 04:51
yup,
it is for the reason explained by TommyWallach.

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Re: The pace of new technology brings a constant stream of new   [#permalink] 28 May 2010, 04:51

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