Pace of new Technology

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 141
Joined: Sat Feb 28, 2009 8:19 am
Thanked: 1 times

Pace of new Technology

by getso » Tue Dec 15, 2009 7:54 am
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.

Source:Manhattan Test

Senior | Next Rank: 100 Posts
Posts: 38
Joined: Mon Nov 23, 2009 9:52 am
Thanked: 3 times

by aspirant1 » Tue Dec 15, 2009 9:37 am
(A) or (D)? what's the IMO?

Junior | Next Rank: 30 Posts
Posts: 15
Joined: Tue Dec 02, 2008 4:12 pm
Thanked: 1 times

by anabbasi » Tue Dec 15, 2009 4:07 pm
IMO its A

GMAT Instructor
Posts: 1302
Joined: Mon Oct 19, 2009 2:13 pm
Location: Toronto
Thanked: 539 times
Followed by:164 members
GMAT Score:800

by Testluv » Tue Dec 15, 2009 4:44 pm
getso 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.

Source:Manhattan Test
The correct answer should be choice B here.

If its true that media outlets often report on the planned introduction of the new device while sales for the old device are strong, then the idea that consumers will halt their purchase of the current device in anticipation of the new device is strengthened since the consumers are now aware of the upcoming device. And the argument that a company should wait until purchases of the old device begin to decline is thereby strengthened since the company's revenues will be hurt if consumers halt their purchase of the device that is currently in the market.

Choice A brings up a fact that is nice for the consumers. But it doesn't really effect the company's strategic planning as to when they should introduce the new device.

For choice D: first of all, we don't know specific timelines here, so we can't attach any significance to "per year". If the technology in question is something that is bought in 3-5 year cycles, then choice D is pretty much irrelevant. Also it says "one or two" instead of "one".
Kaplan Teacher in Toronto

Master | Next Rank: 500 Posts
Posts: 141
Joined: Sat Feb 28, 2009 8:19 am
Thanked: 1 times

by getso » Tue Dec 15, 2009 8:44 pm
Yes IMO is B.

Testluv thanks for the wonderful explanation.

Quite tricky one...I was not able to understand earlier.

Regards,
Shobha

GMAT Instructor
Posts: 1302
Joined: Mon Oct 19, 2009 2:13 pm
Location: Toronto
Thanked: 539 times
Followed by:164 members
GMAT Score:800

by Testluv » Tue Dec 15, 2009 8:55 pm
Thanks Shobha.

I think you mean the OA (Official Answer) is B.

(IMO = In My Opinion)
Kaplan Teacher in Toronto

Master | Next Rank: 500 Posts
Posts: 141
Joined: Sat Feb 28, 2009 8:19 am
Thanked: 1 times

by getso » Tue Dec 15, 2009 8:57 pm
Yes Testluv OA is B.

I'm kind of lost ..Not keeping well
:roll:

Thanks ,
Shobha

Legendary Member
Posts: 869
Joined: Wed Aug 26, 2009 3:49 pm
Location: California
Thanked: 13 times
Followed by:3 members

by heshamelaziry » Wed Dec 16, 2009 11:55 am
IMO B

Legendary Member
Posts: 1404
Joined: Tue May 20, 2008 6:55 pm
Thanked: 18 times
Followed by:2 members

by tanviet » Thu Dec 17, 2009 12:27 am
B is a favorable condition for the process to happen.

Legendary Member
Posts: 594
Joined: Thu Aug 14, 2008 11:51 pm
Thanked: 12 times

by nervesofsteel » Fri Dec 18, 2009 3:32 am
Testluv wrote:
getso 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.

Source:Manhattan Test
The correct answer should be choice B here.

If its true that media outlets often report on the planned introduction of the new device while sales for the old device are strong, then the idea that consumers will halt their purchase of the current device in anticipation of the new device is strengthened since the consumers are now aware of the upcoming device. And the argument that a company should wait until purchases of the old device begin to decline is thereby strengthened since the company's revenues will be hurt if consumers halt their purchase of the device that is currently in the market.

Choice A brings up a fact that is nice for the consumers. But it doesn't really effect the company's strategic planning as to when they should introduce the new device.

For choice D: first of all, we don't know specific timelines here, so we can't attach any significance to "per year". If the technology in question is something that is bought in 3-5 year cycles, then choice D is pretty much irrelevant. Also it says "one or two" instead of "one".
hi

can you explain why not C ?

GMAT Instructor
Posts: 1302
Joined: Mon Oct 19, 2009 2:13 pm
Location: Toronto
Thanked: 539 times
Followed by:164 members
GMAT Score:800

by Testluv » Mon Dec 21, 2009 6:17 pm
Hi nervesofsteel,

well, choice C is a bit trickier. But the argument already contemplates that consumers may not buy the new device "even if the new technology is clearly superior". So, choice C essentially restates inferable evidence; in stn/wkn and assumption questions, choices that restate or contradict evidence are always wrong.
Kaplan Teacher in Toronto

Newbie | Next Rank: 10 Posts
Posts: 1
Joined: Thu Dec 23, 2010 10:23 am

by cluelesss » Thu Jan 20, 2011 10:19 am
it seemed to me that B is weakeneing the argument instead of supporting it. :(