ACoskun Samli Had Developed a Useful Approach to Global Market

question 61

Multiple Choice

A.Coskun Samli had developed a useful approach to global market segmentation that compares and contrasts "conventional" versus "unconventional" wisdom.An example of unconventional wisdom is:

• A) since per capita income in India is about $1,420, assuming that all Indians have low incomes.
• B) assuming that consumers in Europe and Latin America are interested in World Cup soccer whereas Americans are not.
• C) assuming that there is a presence of a higher-income middle-class segment in India.
• D) assuming that the potential Indian customer base for a McDonald's is larger than the size of entire developed countries.
• E) assuming that there is no running water and electricity in India.

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Definitions:

Selling and Administrative Expenses

Costs not directly linked to the production process, including sales, marketing, management salaries, and office expenses.

Selling Price

The amount of money charged for a product or service, or the sum the consumer believes it is worth.

Absorption Costing

A pricing methodology that sums up all production-related costs, from raw materials and labor to both flexible and fixed overheads, in calculating the expense of a product.

Cost-plus Pricing

A pricing approach that sets the selling price by adding a predetermined markup to the cost per unit of a product.