Extensive analysis reveals that if Personal Devices offered Indian cus

QUESTION

Extensive analysis reveals that if Personal Devices offered Indian customers products at a number of different price points, the company would initially earn more profits but damage the brand in the long term.

Which of the following, if true, supports the argument that Personal Devices should offer products at multiple price points?
A) One of the core values of Personal Devices is to offer only the most advanced technology.
B) Major stockholders of Personal Devices are primarily motivated by short-term profits.
C) Competitors have adapted their products considerably for the Indian market.
D) Indian customers are increasingly becoming selective about the brands they purchase.
E) The huge Indian middle class is rapidly reaching a level where they can afford premium products.

ANSWER

Answer: B
Explanation: B) What is more important—short-term profits or the lasting value of the brand? If Choice B is true, then what happens right away is what really matters. Since the strategy of multiple price points makes sense in the short term, Choice B supports the argument. Choice A suggests that the long-term effect is most important, which undermines the argument for multiple price points. Choice C is about other competitors, not Personal Devices. Choices D and E suggest that a valuable high-end brand is the way to go.