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?
a) New technology often becomes less expensive after an initial surge in sales.
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.
c) Many consumers are unable to determine whether new technology is superior to current technology.
d) Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases.
e) Consumers tend to be loyal to technology companies whose products they enjoy using.
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Hi Rastis,
This is a "quirky" CR (and tougher "conceptually" than most GMAT CR prompts). The wording is a bit "loose" and the correct answer is probably not obvious to most Test Takers.
The Facts:
-A constant stream of new technological devices comes to the marketplace and many enjoy COMMERCIAL SUCCESS.
-Announcing new (upcoming) technology too soon after introducing a successful device CAN backfire.
-Once consumers hear about an (upcoming) new device, they MAY stop buying the current one.
The Conclusion:
-A company should wait to announce a new device until purchases of the old device begin to decline.
The Logic:
The prompt expects us to understand that a company has a device currently on the market and will have another "new" device that it will unveil sometime in the future. We're also expected to understand that customers receive information about new devices (how the customers receive that information is not defined, although we're led to believe that one of those sources could be the company itself). Once customers hear about a new device, they MAY stop buying the current one. Thus, companies are advised to not announce a new device, lest they risk losing sales on the current device. This is an interesting argument to make because it doesn't offer any real evidence - just some theories.
To support/strengthen the analyst's ideas, we need an answer that gives us some evidence of ANY part of what the analyst is talking about (historical data proving the point, information on this specific customer behavior, information that shows customers might receive new product info before sales of the current product dropped, etc.).
The 4 wrong answers don't match the logic/idea in the prompt - only one answer does - Answer B. The idea that information about new devices CAN get to the consumer before sales have dropped is enough of a strengthener - it gives us information that proves that one part of the analyst's theory actually occurs (albeit a small part).
I wouldn't worry about this prompt. Getting this CR question wrong would not hurt your score.
GMAT assassins aren't born, they're made,
Rich
This is a "quirky" CR (and tougher "conceptually" than most GMAT CR prompts). The wording is a bit "loose" and the correct answer is probably not obvious to most Test Takers.
The Facts:
-A constant stream of new technological devices comes to the marketplace and many enjoy COMMERCIAL SUCCESS.
-Announcing new (upcoming) technology too soon after introducing a successful device CAN backfire.
-Once consumers hear about an (upcoming) new device, they MAY stop buying the current one.
The Conclusion:
-A company should wait to announce a new device until purchases of the old device begin to decline.
The Logic:
The prompt expects us to understand that a company has a device currently on the market and will have another "new" device that it will unveil sometime in the future. We're also expected to understand that customers receive information about new devices (how the customers receive that information is not defined, although we're led to believe that one of those sources could be the company itself). Once customers hear about a new device, they MAY stop buying the current one. Thus, companies are advised to not announce a new device, lest they risk losing sales on the current device. This is an interesting argument to make because it doesn't offer any real evidence - just some theories.
To support/strengthen the analyst's ideas, we need an answer that gives us some evidence of ANY part of what the analyst is talking about (historical data proving the point, information on this specific customer behavior, information that shows customers might receive new product info before sales of the current product dropped, etc.).
The 4 wrong answers don't match the logic/idea in the prompt - only one answer does - Answer B. The idea that information about new devices CAN get to the consumer before sales have dropped is enough of a strengthener - it gives us information that proves that one part of the analyst's theory actually occurs (albeit a small part).
I wouldn't worry about this prompt. Getting this CR question wrong would not hurt your score.
GMAT assassins aren't born, they're made,
Rich
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Rastis
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Hi Rich,
I'm still not sure how B is the correct answer or how it strengthen's the conclusion. The conclusion is to hold off on announcing a new product due to sales potentially dropping. How would B strengthen that conclusion? B tells me that other things can announce the sale of a new device. It doesn't do anything to support the idea of holding off on announcing it. It's as if there's no reason to hold off since media outlets are going to say something anyway.
I'm still not sure how B is the correct answer or how it strengthen's the conclusion. The conclusion is to hold off on announcing a new product due to sales potentially dropping. How would B strengthen that conclusion? B tells me that other things can announce the sale of a new device. It doesn't do anything to support the idea of holding off on announcing it. It's as if there's no reason to hold off since media outlets are going to say something anyway.
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ANNOUNCING new technology too soon after the introduction of a successful device can backfire.Rastis wrote:I'm still not sure how B is the correct answer or how it strengthen's the conclusion.
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.
Last edited by GMATGuruNY on Sun Nov 08, 2015 3:44 am, edited 2 times in total.
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I still do not see how that answer strengthens the conclusion. The answer is saying "don't announce it because it'll be announced anyway by media outlets". It only tells to company not to announce it. Has nothing to do with sales.
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Keep it simple.Rastis wrote:I still do not see how that answer strengthens the conclusion. The answer is saying "don't announce it because it'll be announced anyway by media outlets". It only tells to company not to announce it. Has nothing to do with sales.
The correct answer choice must answer the following question:
Why it is a bad idea to announce too early the planned introduction of a new device?
The OA offers a logical reason:
Because media outlets will report the announcement while sales of the old device are still strong -- inducing consumers to stop buying the old device.
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i feel that there can be a different interpretation of B as well
B says: 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.
in the entire explanation we are assuming that the media is reporting the news only when it is receiving it from the company (only when the company is willing to disclose this news) . what if media is spreading this news well before the company wants to make the news public? there are various "hidden sources" from where the media DO get news, after all this not very unusual in today's world when media is so much equipped with people who get the "inside story" of the organization. if such is the case don't you think option B becomes a weakener?
i feel that there can be a different interpretation of B as well
B says: 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.
in the entire explanation we are assuming that the media is reporting the news only when it is receiving it from the company (only when the company is willing to disclose this news) . what if media is spreading this news well before the company wants to make the news public? there are various "hidden sources" from where the media DO get news, after all this not very unusual in today's world when media is so much equipped with people who get the "inside story" of the organization. if such is the case don't you think option B becomes a weakener?
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The analyst asserts that announcing new technology too soon CAN backfire.aditya8062 wrote:Guru
i feel that there can be a different interpretation of B as well
B says: 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.
in the entire explanation we are assuming that the media is reporting the news only when it is receiving it from the company (only when the company is willing to disclose this news) . what if media is spreading this news well before the company wants to make the news public? there are various "hidden sources" from where the media DO get news, after all this not very unusual in today's world when media is so much equipped with people who get the "inside story" of the organization. if such is the case don't you think option B becomes a weakener?
in other words, it is POSSIBLE for a premature announcement to backfire.
The correct answer choice must explain why it is possible for a premature announcement to backfire.
The OA offers a valid reason:
Media outlets often report on the planned introduction of new devices while the sales of old devices are still strong, inducing consumers to stop buying the old devices.
The OA does NOT need to prove that announcing new technology too soon will backfire in every imaginable case.
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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.
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