Critical Reasoning

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 try the question yourself and then explain the correct answer. I am not seeing the logic behind the correct answer

The correct answer is: B (you must highlight this sentence to view the answer)

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. This goes to far infering. The statement does not talk at all about teh dollar amount
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. Could be

c.Many consumers are unable to determine whether new technology is superior to current technology. Nahhh, again out of scope

d.Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases. Could be although is a little off

e.Consumers tend to be loyal to technology companies whose products they enjoy using. Not related to the issue

I will go with B

I'm stuck between B and C. It questions like these that make me want to pull my hair out during the exam

I'm inclined to choose C. Here's my reasoning:

If customers are unable to determine whether new tech. is superior to current tech. (but they buy the new tech. regardless) then this throws out the possibility that customers buy new tech. b/c it's technologically superior.

To put it more blatantly, if customers can't tell the diff. b/w new tech and old tech but new tech comes out too soon after the introduction of a successful device, what reason do they have to continue buying the old tech.? All the more reason to wait until purchases of the old device have begun to decline.

I am inclined to go with B as well. This is the part of the original paragraph which is relevant:

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.

This suggests that the "announcement of the new project" will affect the sale. Media outlets often aid in the announcement, while the old one is still being sold. This will affect the sales of the devices with the old technology.

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?


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 the only choice that deals with the fact that sales are affected by announcements of new products which is what the analysts assertion is based on.

But how does B being the only one directly talking about the announcements make it the most supportive?

Media outlets reporting on new products to be in market doesn't seem to add any credibility to the issue that new products in market stop customers from buying the old product.

In my opinion, it doesn't matter if media announces new products while old products are going strong if it does not influence old technology sales. The proof needs to be that announcements of new products cannibalizes old products. From the proof, you could make the assertion that announcing too early is bad. From what I can see, B doesn't offer that proof.

Any further explanations?

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.

It is clearly stated that announcing might affect the sale of old devices hence if:

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.

Sale of old devices may stop.

I know this thread is a year old but I think its still worth discussing.

I would go for answer E.

The conclusion drawn here hinges on the fact that customers who switch from old to new technology are loyal to a certain producer/brand. If they are not, then why would early announcements backfire?

Am I missing the point completely? What do you all think? Perhaps a resident expert may be able to provide some input too.

BlueMentor

bluementor wrote:I know this thread is a year old but I think its still worth discussing.

I would go for answer E.

The conclusion drawn here hinges on the fact that customers who switch from old to new technology are loyal to a certain producer/brand. If they are not, then why would early announcements backfire?

Am I missing the point completely? What do you all think? Perhaps a resident expert may be able to provide some input too.

BlueMentor

As per question stem we need to select an option which best supports analyst's main assetion.

The main assertion here is that company should not announce the new products due to XYZ reason.

Option E here talks about consumers who are already using companies product.
Analyst's focus is on those people who are planning to buy the new product.

For example i'm planning to buy a new cannon 3MP digital camera and come to know that cannon is planning to introduce a 5MP in few months. then i may defer my buying.
For a person who has already baough the camera how does it matter.
Even if someone is loyal to the brand "cannon" for some other reason, he'd wait for the 5MP camera, not because he is loyal to cannon, but becuase he saw the ad in newspaper.

[size=18]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. [/size]

isnt the above the main assertion. How will you identify the assertion in the passage .



Pleas explain
Senthil

senthil wrote:[size=18]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. [/size]
isnt the above the main assertion. How will you identify the assertion in the passage .
Pleas explain
Senthil

yes thats what i said, this is the main assertion and option E doesnt support this assetion.

yes thats what i said, this is the main assertion and option E doesnt support this assetion.

Hi Durgesh79,

Thanks for clearifying that...but I'm still not sure why B is the right answer.

Isnt the media only going to contradict the company's assertion? Instead of wating for the product sales to decline, it is announcing a new product while the existing model is still doing well. Isn't this contradictory?

BlueMentor

bluementor wrote:

yes thats what i said, this is the main assertion and option E doesnt support this assetion.

Hi Durgesh79,

Thanks for clearifying that...but I'm still not sure why B is the right answer.

Isnt the media only going to contradict the company's assertion? Instead of wating for the product sales to decline, it is announcing a new product while the existing model is still doing well. Isn't this contradictory?

BlueMentor

We need to support analyst's assertion, not company's

and the underlying assumption in option B is that once company announces the planned introduction of the new product, media takes it to customer is a very visible and efficient manner. So more and more people know about the new product and hence it may delay the decision of buying.

We need to support analyst's assertion, not company's

Durgesh79,

I'm all clear now. I've been looking at things through the company's eyes all this while.

Thanks a lot man!

BlueMentor