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ElectroMax,a Manufacturer of High-End Cell Phones,is Planning to Enter the Indian

Question 56

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ElectroMax,a manufacturer of high-end cell phones,is planning to enter the Indian market.A senior manager thinks that a stripped-down,low-priced model should be the starting point,and the company can sell additional features added to the base model at higher price points.Analysis reveals that if ElectroMax offers Indian customers products at a number of different price points,the company would initially earn more profit,but it would also run the risk of damaging the brand in the long term.Which of the following would weaken the argument that ElectroMax should offer products at multiple price points?


A) The Indian market is big enough to support product offerings at multiple price points.
B) Taiwanese manufacturers have recently focused on the low to medium end when selling in their domestic markets.
C) Brand image is based on all the perceptions that customers have of a company's product.
D) The typical Canadian consumer associates price with quality.
E) Niche companies that try to be everything to everyone usually lose their edge in their core business.

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