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

IMO B.

I choose B because it mentions that the media report the planned introduction of new devices while sales of the old devices are still strong.

In addition, this support's the author's main assertion that "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."

(B)

maihuna,

What is the OA?

Thanks

OA B. thanks

Yeah, the OA is indeed 'B'.

But somehow, I feel that the answer should be 'E'.

Becuase, unless the customers are loyal to a particular company/company's products, and some competitor company may introduce a new product with superior technology and in that case customers might switch from our company existing product to the competitor's new product.

In this case the author's assertion falls apart that a company should wait before introducing a superior product, and capitalise completely on the sales on existing product.

The above is possible only if customers are patient enough to wait and not switch to a competitor's product in the mean time !

Please let me know your opinion.

How about think in this way -

You want to but IPOD, and latest is TOUCH. While it is really in demand (and you are almost going to buy) and suddenly accountment comes like IPOD SENSE is coming, which has features using which user can operate it without toucing.

I am sure you might want to wait for the SENSE.

I will go with option B in this case.