International Price Setting (Scenario)

question 102

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 should most likely be considered by managers of CCC before setting the price for the lounge chairs manufactured by the company?

• A) In what other markets could CCC export its high-priced line of furniture?
• B) Would the London retailer be able to recommend appropriate intermediaries?
• C) What type of pricing strategy best corresponds to the corporate goals of CCC?
• D) Does CCC plan to implement product diversification in the future?

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Definitions:

Voluntary Behaviors

Actions that are performed intentionally, under an individual's control, as opposed to automatic or reflexive actions.

Social Learning Theory

A theory that suggests people learn from one another via observation, imitation, and modeling.

Higher Order Conditioning

A learning process whereby a stimulus that has been conditioned to produce a particular response is used in turn to condition a second stimulus to produce the same response.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response.