Pace of technological development

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Pace of technological development

by april24 » Sun Nov 08, 2015 2:31 am
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?

1) New technology often becomes less expensive after an initial surge in sales.
2) 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.
3) Many consumers are unable to determine whether new technology is superior to current technology.
4) Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
5) Consumers tend to be loyal to technology companies whose products they enjoy using.

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by GMATGuruNY » Sun Nov 08, 2015 3:43 am
april24 wrote: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?

1) New technology often becomes less expensive after an initial surge in sales.
2) 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.
3) Many consumers are unable to determine whether new technology is superior to current technology.
4) Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
5) Consumers tend to be loyal to technology companies whose products they enjoy using.

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.

Notice the shift in language:
The argument assumes that if a company ANNOUNCES the planned introduction of a new device, consumers will HEAR about the planned introduction, with the result that they stop buying the old device.

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 answer choice supports the assumption that ANNOUNCING the planned introduction of a new device will lead to consumers HEARING about the planned introduction, with the result that they stop buying the old device.
Worse, they will stop buying the old device WHILE SALES OF THE OLD DEVICE ARE STILL STRONG -- strengthening the conclusion that a company should not announce the planned introduction of a new device until purchases of the old device have started to decline.

The correct answer is B.
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