1.

Scooters Inc. is a producer of pricey scooters. The company's profits come mostly from the sales of its luxury line that caters to the esteem needs of the rich population. Ben Driven, vice president of marketing for Scooters Inc., has been asked to review the company's pricing strategy. Ben has opted for charging a high price for the newest product by aiming first at consumers willing to pay that much, then progressively lowering the price to sell to other consumers; this pricing policy is knows as a ______

Group of answer choices

dual pricing

skimming strategy

arm's length pricing

value-based pricing

2.

A well-known European stereo system manufacturer, EuroFi, sells many stereo systems in European countries. Its products are floundering in the United States, however, because its designs stress cool style rather than powerful functionality and innovative features.

Conversely, Asian competitors stress function and innovation over style and design; their sales have been consistently grown over the past several quarters.

At this point, after a weekend retreat assessing their situation, EuroFis senior executive company realization, tough as it is to admit to, that they misunderstood consumer preference in the United States.

They had thought that Americans growing appreciation of style and image, perhaps best exemplified by the iPhone craze, would extend to their particular product line. But, data indicate otherwise.

***

Question | Which of the following supports the points made in the scenario?

Group of answer choices

Successful multinational firms often need to modify the products they sell in different countries.

Consumers everywhere anywhere all want high quality and low prices.

Many multinationals are setting up major subsidiaries in China and India.

Stylish products cannot feature new technology and functionality.

Most manufacturers have plants in more than one country.