Personal Devices Inc. is a manufacturer of premium cell phones. Most of the company's handsets are equipped with high-end features such as large internal memory, sophisticated texting, camera and music functionalities, and data transfer capabilities. The company is planning to enter the Indian market. One of the senior managers argues that a stripped-down, low-priced model without any extras could be the starting point. The company can sell additional features added to the base model at higher price points. Which of the following, if true, would weaken the senior manager's argument?
A) Producing a stripped-down model would alter high-end domestic customers' view of the Personal Devices brand.
B) A premium auto manufacturer who came out with economy cars suffered in the market.
C) India recently blocked low-priced Chinese phones that did not have the International Mobile Equipment Identification number.
D) Research suggests that the premium market segment is saturated.
E) Even high-end customers typically do not use the advanced functionality in Personal Devices cell phones.
Correct Answer:
Verified
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