Question

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.

Answer 1

(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.

Step-by-step explanation:

This statement explains why a company may be wary of introducing a new device before the sales of previous products have begun to decline. It also explains why it might be a great mistake.

Media is extremely influential in consumer behaviour, whether it is traditional media or social media. People watch or use media all the time, and if they bombarded with ads of a new product, they will probably feel the need to buy it. For example, if Apple introduces a new iphone model very shortly after having put in the market a previous model, sales of the new model will probably rise in expense of the sales of the previous one.