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.
-Because Scooters,Inc.caters to a very narrow niche of wealthy individuals,the CEO is interested in implementing a worldwide pricing scheme.Which of the following conditions is most likely to help the establishment of such a scheme?
A)Production costs differ from market to market.
B)Currency values fluctuate fairly predictably.
C)Distribution channels are lengthy in each market.
D)Wealthy local buyers have similar levels of purchasing power.

Question

Quizplus · Accepted Answer

Wealthy local buyers having similar levels of purchasing power will make it easier to implement a worldwide pricing scheme for Scooters, Inc. as the prices can be set uniformly across all markets, without having to adjust for different levels of purchasing power. If there are significant differences in purchasing power, then the prices would need to be adjusted accordingly, which would complicate the pricing strategy. Therefore, Option D is the most likely condition that would help the establishment of a worldwide pricing scheme.

Scenario: Scooters,Inc. Scooters,Inc.is a Producer of Pricey Scooters.The Company's Profits Come Mostly