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

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BSchool Forum Moderator
Joined: 02 Oct 2009
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The pace of new technology brings a constant stream of new [#permalink]

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10 May 2010, 02:34
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60% (02:32) correct 40% (02:15) wrong based on 17 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.
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10 May 2010, 08:21
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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10 May 2010, 08:55
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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10 May 2010, 09:22
no its not D
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10 May 2010, 13:09
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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10 May 2010, 19:33
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KUDOS
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, 10:27
I'll got with B
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19 May 2010, 00:28
Is it D?
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19 May 2010, 03:58
B must be the answer ....
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28 May 2010, 05:51
yup,
it is for the reason explained by TommyWallach.
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28 May 2010, 06:23
OK Corrected Ans is B

I get it now if the products are marketed then the people will stop buying the old products and wait for new

The Q and A are quite confusing as the Q is to strengthen the conclusion that companies should not release new products till the sales of old products have gone down.

And even though the ans makes sense, its quite illogical if the same company advertises itself to drive the sales of old products down to make way for new.
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28 May 2010, 07:29
bangalorian2000 wrote:
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 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"

Man, they do try to confuse you. Using "the result is that..." almost at the end of the passage makes you believe that this is the conclusion. But in reality, the conclusion comes only in the last sentence, written in a way that won't make you pay attention because it's not eloquent.
Sometimes the conclusion is at the beginning, and they only explain the reasoning in the following sentences.
And, if the question is something like: which of the following, if true, would strengthen the statements above?, it really doesn't help because it doesn't call for the conclusion, it could be any part of the reasoning. Then, it may seem to you that several of the answer choices support the above statements.
You really need to be careful and understand the passage, before reading what they want you to answer.
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20 Jun 2010, 08:44
Is it C?
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Re: The pace of new technology brings a constant stream of new [#permalink]

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02 Jan 2014, 03:29
No here the answer is B!!

it is a Manhattan test question.
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Re: The pace of new technology brings a constant stream of new [#permalink]

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02 Jan 2014, 09:56
CONCLUSION- If a company wishes to introduce a new device, it should wait until purchases of the old device have begun to decline.

PREMISE- 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.

Which of the following, if true, would best support the claims made above? ASK...... SO WHAT?

a· New technology often becomes less expensive after an initial surge in sales.......WE ARE WORRIED ABOUT THE TIMING OF THE LAUNCH....WHAT HAPPENS THEREAFTER IN TERMS OF COST DOES'NT MATTER..................

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......SINCE RESENTMENT AT THIS STAGE IS HIGH AND SOME CUSTOMERS ALSO DONT WANT TO BUY OLD TECHNOLOGY, BETTER NOT TO LAUNCH THE PRODUCT NOW AND RATHER WAIT TILL SALES OF PRESENT PRODUCT REDUCES... CORRECT

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

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

e· Consumers tend to be loyal to technology companies whose products they enjoy using.....DOES'NT AFFECT THE ARGUMENT...
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Re: The pace of new technology brings a constant stream of new [#permalink]

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31 Jul 2015, 02:52
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Re: The pace of new technology brings a constant stream of new   [#permalink] 31 Jul 2015, 02:52
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