International Price Setting (Scenario)

question 99

Multiple Choice

International Price Setting (Scenario)
The Comfy Couch Corporation (CCC) is a leading American manufacturer of sofas, sectionals, and lounge chairs. Managers from the U.S.-based firm recently met a London retailer who expressed an interest in selling CCC lounge chairs in his stores. The retailer sells a number of different furniture brands in his stores, so CCC managers need to price their furniture appropriately if the firm is to be competitive in the European market.
-Which of the following questions would be the most important to evaluate before setting a price for the lounge chairs exported to England?

• A) What is the mark-up price quoted by the London retailer for CCC's products?
• B) What is the average price that Londoners pay for upholstered chairs?
• C) How many lounge chairs are sold in London retail stores every year and at what price?
• D) Do many global market segments exist in the European Union?

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