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.

Please discuss

The answer should be C.

Evidence:

The pace of technological development brings a constant stream of new devices to the market, and many of them enjoy commercial success

Once consumers hear about the new device, they may stop buying the one currently on sale. [support for mini-conclusion]

Conclusion:

But announcing new technology too soon after the introduction of a successful device can backfire.[intermediate conclusion]

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. -Main conclusion

Clearly the author is applying his analogy to this company.In short he is generalizing his rule "a rule that contains can backfire".A rule that is supported by a statement that contains " consumers MAY stop buying"

Obviously,the author is making an assumption that " consumers can determine whether the new product is a good one.If they can determine whether a new product is better than an old one then the sales that could have been generated from the old product would be killed prematurely [think decision on whether to launch iphone vs an already successful product in the market] ".If he doesn't believe this the argument will fall apart.

But if told you that consumers are dumb "even if placed an ounce of gold in front of them,they would still choose silver [because they don't know which one is better]".Then can you conclude that the sales will fall prematurely [ sales falling before the shelf -life]"

It would certainly weaken

SmarpanGamt 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?

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.

Please discuss

This is the same question I posted yesterday under "Technological Development".
Check out this link for a few more answers...

https://www.beatthegmat.com/technologica ... 70880.html

SmarpanGamt 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?

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.

Please discuss

yes, i remember this CR. its a MGAT question and the Oa is B
C is out of scope....