A customer buying a branded product from a low-priced distributor ...

[jparksx]

A customer buying a branded product from a low-priced distributor likely is:
 a. Getting a counterfeit product.
  b. Buying in the gray market.
  c. From an authorized dealer with high-volume and operating economies.
  d. Purchasing from a free rider.
  e. There is no way to tell from the information given.

Question 2

Discuss how the stages of the international product life cycle affect a company's strategy.

[dawsa925]

Answer to Question 1

E

Answer to Question 2

In the introduction phase, products are developed and sold in industrialized countries. Consumers in these markets the most likely to be able to afford the higher price associated with new products. In the growth stage standards are established. Competition increases in the growth stage causing the company to differentiate its product through product variation. Towards the end of the growth stage the company begins to focus on economies of scale. In the maturity stage, the company focuses on cost reduction. To this end, production is often moved to low-wage (i.e., low cost) countries. The product is then exported to the home country from less expensive operations. As the product moves into the decline stage in the host country, it may be in the growth or mature stage of the product life cycle in other countries. For this reason, having an international presence in the decline stage could be an advantage.

[jparksx]

Thank you

[dawsa925]

No problemo