Question

Omega, Inc. is considering international expansion and wants to know if it is likely to command a high price for its fitness product. In which of the following situations can Omega, Inc. command higher prices for its fitness product in a foreign market?

A. the product is widely available in the foreign marketB. sales volumes is relatively low in the foreign marketC. the product offers greater value to customers in the foreign marketD. the product is more suitable to other foreign marketsE. domestic competitors are selling alternatives at reduced prices

Answer 1

Correct option is (C)

Step-by-step explanation:

A corporation that is planning to operate in foreign market could charge higher price only if the product offered by the organization is valued by customers in the foreign market.

In this case customers will be willing to pay higher price to acquire the product. If the product does not offer any value, customer can choose to either not make any purchase or choose a substitute good. As such, organizations can cash in on the value placed by the customers on the product.