Company sales

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Company sales

by Sul » Mon Aug 19, 2013 8:35 pm
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.

OA: 2
Source: — Critical Reasoning |

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by vinay1983 » Tue Aug 20, 2013 5:05 am
I think it is an OG question.

A. Does not support the claim why new devices should not be released.Every device goes through this.
B. This is correct, since, If media starts reporting the news of a new device people actually start planning to purchase them, this will affect the sales of the older device.
C. If the customers are unsure about the superiority, then how can we be sure that they will purchase the new device.
D. Survey is out of scope. We are not talking about surveys but devices.
E. Out of scope.

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by Nitin.811g » Sat Aug 24, 2013 10:27 pm
Yes, B it should be

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by Nitin.811g » Sat Aug 24, 2013 10:28 pm
Yes, B it should be