Question

In an effort to increase profitability, a large company producing personal care products like toothpaste, deodorant and shampoo wants to export its newest products to foreign markets. Some executives in the company are reluctant to pursue this option because of possible differences in personal care practices around the world. The president of the company admits that there are variations in culture, but he has faith that their products are the best on the market, domestic or foreign, which should, he says, make them the most attractive products on the market.

Which situation, if true, most hinders the company’s exportation possibilities?

A	This company’s products are not the most attractive products on the market.

B	Legislation making personal care products analogous to pharmaceutical products, and therefore heavily regulated, were recently passed.

C	This company’s products are not the highest-quality ones on the market.

D	Residents of other countries believe that the personal care products made by this company are the best, albeit the most expensive, on the market.

E	Some residents of other countries have a bias that the products made by this company are worse than other products locally available.

Answer 1

The answer is option E. Some residents of other countries have a bias that the products made by this company are worse than other products locally available.

If people in other countries believe that this company products are inferior to the products locally available, it makes no sense for the company to look for exploration in those areas. If the product gets launched also, it will be a huge failure