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
Pace of new Technology
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The correct answer should be choice B here.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
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".
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hiTestluv wrote:The correct answer should be choice B here.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
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".
can you explain why not C ?
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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.
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.
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