Trends Inc. produces and markets casual wear for men and women. The company wants to be a global brand and is planning to enter a few chosen markets across Europe and Asia. To accommodate the differences in purchasing power and costs of shipping goods to the retailers, the company has decided to use cost-based pricing in each country. In order to ensure that this strategy is successful, Trends must first make sure that ________.

Question

Quizplus · Accepted Answer

For cost-based pricing strategy to be successful, Trends Inc. must ensure that competing offerings in the different markets are not priced lower. If this is the case, Trends Inc. may need to adjust its pricing strategy to remain competitive.