IMO B

Analyst asserts that introduction of new devices might affect the sale of old model. So companies need to wait till the sale of old model declines.

choice B says, that the media will introduce the new model as planned when the sale of old model is good.
This supports the assertion because the sale of old model is not affected by any means.

analyst makes 2 assertions:
1) intro of new devices too soon after a successful intro backfires
2) should intro new devices after the sales of previous devices declined
the second is the main assertion

C

A. New technology often becomes less expensive after an initial surge in sales. -irrelevent. Issue is when to intro new devices not how they perform over time


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- irrelevant. talks only about planned reports not when the new devices are introduced

C. Many consumers are unable to determine whether new technology is superior to current technology- correct, if the customers are not able to decide they may or may not go for the intro of new devices and the intro may backfire. for the success of new devices, it is therefore prudent to wait till sales of the previous devices waned

D. Surveys have shown that some consumers make only one or two technology purchases per year, whereas others make more frequent purchases - irrelevant. they may still not go for the new products

E. Consumers tend to be loyal to technology companies whose products they enjoy using - not conclusive. if they tend to be loyal to company making old products they will not buy new, if they are loyal to company maing new products they will buy new

IMO B

A--OUT OF SCOPE
C: if the consumer does not know about the technological difference , then it does provide any impetus to choose the new one.
D: OUT OF SCOPE
E: OUT OF SCOPE

OA is B

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.

I eliminated options to B and E.

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 just informs us the way customers get informed of the new products.
But nowhere it says that sales will decline further because of this event.
Even in argument it says that announcement of new technology after the introduction of a successful device can backfire.
It says can but i don't think it is must or will.

E. Consumers tend to be loyal to technology companies whose products they enjoy using.

If customers are not loyal to technology companies then they need not wait until purchases of the old device have begun to decline.
If the customers are loyal then only they will wait since they don't want the sales of their old product to decrease.

I am not able to understand why B is right and E is wrong.
Can someone clear my confusion?

Mechmeera 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.

I eliminated options to B and E.

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 just informs us the way customers get informed of the new products.
But nowhere it says that sales will decline further because of this event.
Even in argument it says that announcement of new technology after the introduction of a successful device can backfire.
It says can but i don't think it is must or will.

E. Consumers tend to be loyal to technology companies whose products they enjoy using.

If customers are not loyal to technology companies then they need not wait until purchases of the old device have begun to decline.
If the customers are loyal then only they will wait since they don't want the sales of their old product to decrease.

I am not able to understand why B is right and E is wrong.
Can someone clear my confusion?

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Please refer to the image below containing flowchart of the argument and elimination of options one by one:



Key:
NT: new tech; OT: old tech; OD: old devices; ND: new devices; SR: selling rate
OA: B

Hope this helps!
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