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Using the following information please answer questions 33- 41. Sale information

ID: 329046 • Letter: U

Question

Using the following information please answer questions 33- 41. Sale information shampoo in Domestic Market (USA): Value: $55,000 mn Volume: 25,000 mn liters Sale information for shampoo X (made by Firm X) in Domestic Market (USA): Market share by value: 5% in past 5 years. Price: $1.15 for a .75 liter. Country E 5 million $28,300 75 percentile At par with USA Information O German ountry 150 million Population GDP/capita ppp $5,500 Political stability: 50 percentile Infrastructure: Well below USA Culture Language: Spanish Income distribution: Relationship O 42% Top 10%: 35% Bottom 10%: 3% 2.5% Sale information for shampoo: $25,000 mn $15,000 mn Value: Volume: 15,000 mn liters 12,000 mn liters Using the previous page information please answer questions the following questions: Page 2 of4

Explanation / Answer

37-a- Premium at 25% above because price charged at US market is higher than other similar market and economic level.

38- C-Political stability is also average in country A so penetration with lower price than US is desirable for the country.

39-d- Premium pricing will be good for country B because of higher income level and purchasing power of people.