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. Extensive analysis reveals that if Personal Devices offered Indian customers products at a number of different price points, the company would initially earn more profits but damage the brand in the long term. Which of the following, if true, would support the argument that Personal Devices should offer products at multiple price points?
A) One of the core values of Personal Devices is to offer only the most advanced technology.
B) Major stockholders of Personal Devices are primarily motivated by short-term profits.
C) Competitors have adapted their products considerably for the Indian market.
D) Indian customers are increasingly becoming selective about the brands they purchase.
E) The huge Indian middle class is rapidly reaching a level where they can afford premium products.
Correct Answer:
Verified
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