Answered: Personal Devices Inc., based out of…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

Personal Devices Inc., based out of Portland, Oregon, is a manufacturer of premium cell phones. Most of the company’s handsets are equipped with high-end features such as large internal memory, sophisticated texting, camera and music functionalities, and data transfer capabilities.

The company is planning to enter the Indian market. One of the senior managers argues that a stripped-down, low-priced model, without any extras, could be the starting point. The company can sell additional features added to the base model at higher price points.

Which of the following, if true, would most strengthen the senior manager’s argument?

A) Research suggests that consumers are looking for more variety in this product category.

B) The majority of India’s consumer market is located at the base of the pyramid.

C) Few competitors in the market offer basic cell phones because of increasing customer sophistication.

D) The company will face charges of dumping if it sells the phones at a price lower than what it offers in the home country.

E) Different companies already cater to the requirements of different market segments in India.

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