Pace of technological developement----strengthening

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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 AIM GMAT » Mon May 09, 2011 12:10 am
IMO B .

B is in sync with the argument , as it states that current sales should not be hampered due to introduction of new technology . Each should reap the potential market , so its for betterment , not to disclose the new arrival till the older technology is on it peak .
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by atulmangal » Mon May 09, 2011 12:30 am
I picked up Op A...reasons

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.

Now i agree Op B is in synchronization with this part "Once consumers hear about the new device, they may stop buying the one currently on sale" ----> correct

But Op A also seems to sync with this part of the argument:

" it should wait until purchases of the old device have begun to decline."

I mean Op A is suggesting that there is a usual trend that the sale of products based on current technology will decline so the new product must be introduced later...

Though i know OA is B, but don't know what's exactly wrong with Op A.

Find this question really tough because of Options given.

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by arunpanda22 » Mon May 09, 2011 1:15 am
atulmangal wrote:I picked up Op A...reasons

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.

Now i agree Op B is in synchronization with this part "Once consumers hear about the new device, they may stop buying the one currently on sale" ----> correct

But Op A also seems to sync with this part of the argument:

" it should wait until purchases of the old device have begun to decline."

I mean Op A is suggesting that there is a usual trend that the sale of products based on current technology will decline so the new product must be introduced later...

Though i know OA is B, but don't know what's exactly wrong with Op A.

Find this question really tough because of Options given.
prob is u took "less expensive" to be decline in sales.an object may become less expensive and still be a commercial success if manufacturer was quoting really high price as an introductory price.

(well here are dishonest ppl out there)
hence a eliminated

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by vikram4689 » Mon May 09, 2011 7:36 am
It seems C to me as this shows why people will run for new product every time. B seems to be completely oppo. can some explain this because OA is B (atul mentioned)
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by abhi0697 » Wed May 11, 2011 12:18 am
IMO B

Analyst's main assertion is the announcement of upcoming sale of a new device by a company. B clearly supports this assertion by stating that media outlets often report on the planned introduction of new devices.

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by ankurmit » Thu May 12, 2011 12:05 am
--
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Ankur mittal

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by vikram4689 » Sat May 14, 2011 11:11 pm
Got this one.....thanks for sharing a good question.
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