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.
-Ben's boss, Bjorn Turide, has asked Ben to hypothesize what might occur if the company raised its prices further in export markets. Ben should tell his boss that ________.

Question

Quizplus · Accepted Answer

Raising prices in export markets could lead to a drop in international sales if customers find out about lower domestic prices, create opportunities for arbitrage, and necessitate keeping international and domestic buyers separate to prevent price discrepancies.

Scenario: Scooters, Inc. Scooters, Inc. Is a Producer of Pricey Scooters. the Company's