14. Assume a sports drink manufacturer prices its products relatively high and m

Question

14. Assume a sports drink manufacturer prices its products relatively high and make them more expensive than comparable drinks. To find foreign markets with high potential demand, the mpany sclected countries only with high per capita income. Is this a suitable market research strategy? a) Yes. Per capita income for consumer products is a good indicator of demand. b) Yes, assuming the current U.S. method is used for foreign exchange rate conversion c) Possibly not because per capita income alone can be misleading d) No. GDP should be used as a measure of income instead.

Explanation / Answer

Answer is C - possibly not because per capita income alone can be misleading because many other economic, social and personal factors are other consideration which should be considered not only the per capita income, because per capital income gives an average idea about the income of entire population but in actually income is not uniformly spread among all the citizens so it is a misleading factor in alone.

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