Verbal questions from any Manhattan Prep GMAT Computer Adaptive Test. Topic subject should be the first few words of your question.
virgo_rookie
 
 

Analyst: The pace of technological development

by virgo_rookie Mon Sep 01, 2008 10:15 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?

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.

I am not clear on how the correct answer is strengthening the assertions stated in the main body. Kindly explain
TP
 
 

Re: Analyst: The pace of technological development

by TP Mon Sep 01, 2008 10:25 pm

Is the answer "E"?. That choice seems to support the argument wherein customers (if loyal
to the company that they buy products from) will be willing to wait for the new products to
arrive?

Thanks.
virgo_rookie
 
 

Re:

by virgo_rookie Sun Sep 07, 2008 12:50 am

The Correct Answer given is B..Can anyone pls explain how.
Guest
 
 

by Guest Sun Sep 07, 2008 2:59 pm

I would like a reply to this as well. Part of the conclusion here is that companies should "wait until purchases of the old device have begun to decline". If media outlets are spilling the beans while old devices are still selling strong, isn't this opposing what the analyst is asserting?
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by JonathanSchneider Wed Oct 15, 2008 9:02 pm

I think the idea here is that the media outlets will get the word out once the company has announced some new product coming to market. As a result, people will hear about it. So, if the company wants to keep consumers buying the products currently available, it ought to keep a tight lid on the new developments. An indirect strengthener, I'll admit, but a strengthener nonetheless.
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Re: Analyst: The pace of technological development

by tammiechi Tue Apr 21, 2009 7:18 pm

Argument: Wait to announce new product until old product sales decline

I still don't see why B is the correct answer. If various media outlets introduce the new product, shouldn't this deter sales of the older product (which is what the argument is advocating)? Since B says that media outlets introduce new products while the old product sales are still strong, wouldn't this weaken the argument?
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Re: Analyst: The pace of technological development

by malikrulzz Wed Apr 22, 2009 9:53 am

IMO E too.
APARIDA
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Re: Analyst: The pace of technological development

by APARIDA Wed Apr 22, 2009 10:42 pm

B focuses on a specific subset (media outlets). If we have to go with B, then we have to make another assumption that media outlets, such as TV programs are more effective in reaching out to potential customers. Without this assumption, B does not strengthen the argument. There might be other channels through which customers will get to know about the new product and those channels might be more effective than media outlets such as TV programs.

On the other hand, E appears to be the best answer. Authors main assertion is that companies should not announce the upcoming sale of a new device, they should wait until purchases of the old device have begun to decline.

Here the main underlying assumption is : If announcement about a new device is delayed, customers will buy the existing product from the market sold by the same company and will not buy a technologically superior product from a competitor.

Going by the above argument, E seems to be the best answer.

Please clarify.
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Re: Analyst: The pace of technological development

by JonathanSchneider Fri May 01, 2009 4:37 pm

I think you guys are a bit confused as to the main argument here. The argument hinges on whether a company should WAIT to announce an UPCOMING product.

E states that customers are loyal. This is great for any company that has had success with a previous device. However, will these customers know about the company's announcement? If the answer choice stated that loyal customers follow a company's announcements closely, this would certainly help E as a choice, but it would still not push it above B, because B shows that a large number of people will know about the upcoming product. Without knowing that they will know about the upcoming product, E only tells us that loyal customers are likely to continue buying from the company. This is GREAT news for the company, but it does NOT strengthen the specific argument here (that they should WAIT).

B states that the media outlets heavily publicize UPCOMING products. As a result, if the company makes an announcement about an UPCOMING product, people will know about it. Thus, people in general (loyal or not) will be less likely to purchase the current version. This will drive current sales down, even before the new product is ready to take its place.

When strengthening or weakening any argument, make sure that you understand the specfics of the claim at stake.