Scenario: Scooters,Inc. Scooters,Inc.is a Producer of Pricey Scooters.The Company's Profits Come Mostly

question 29

Multiple Choice

Scenario: Scooters,Inc.
Scooters,Inc.is a producer of pricey scooters.The company's profits come mostly from sales of its luxury line that caters to the rich and famous,similar to the Vespa.Ben Driven,vice president of marketing for Scooters,Inc. ,has been asked to review the company's worldwide pricing strategy.
-Because Scooters,Inc.caters to a very narrow niche of wealthy individuals,the CEO is interested in implementing a worldwide pricing scheme.Which of the following conditions is most likely to help the establishment of such a scheme?

• A)Production costs differ from market to market.
• B)Currency values fluctuate fairly predictably.
• C)Distribution channels are lengthy in each market.
• D)Wealthy local buyers have similar levels of purchasing power.

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Definitions:

Majority Culture

The dominant cultural practices, values, and beliefs of the primary or most influential group within a society.

Native Culture

The traditions, customs, languages, and artifacts of a group of people who are indigenous to a specific geographical region.

Assimilation

The process in which people understand an experience in terms of their current stage of cognitive development and way of thinking.

Marginalization

The process that occurs when people identify neither with their minority culture nor with the majority culture.