Economics Test Questions with Answers

Topics: Marketing, Multinational corporation, Economics Pages: 2 (654 words) Published: April 7, 2013
Q-1: What does good enough market means? Explain why the author has used this technology in this article? Sol: In the past there has been two dominating structures of chinas market. At the top a small premium segment served by the foreign companies who serve to a class which is concerned about buying a foreign brand and has a strong buying power. At the lower end a large end segment served by local companies offering low quality undefferential products which were cheaper than premium. Between the two is the expanding good enough market who caters a middle class which neither makes a cheap product nor a premium one. For example, there is a class who has good enough buying power, who do not want to buy cheap goods but have no power to buy premium market goods. Q-2: Explain the structure of china market for consumer product. Explain how marketer can benefit by understanding this market? Sol: China market is basically divided in three segments which are upper, middle and lower. Producers are targeting these segments very wisely in china market and boasting their shares gradually .In market every market segment have targeted on the income level of their consumers. The consumers that belong to upper class normally have high income so they just want to use the products of high quality. To pamper these customers markets have some well known brands like TCL, Skyworth and Hisense. At the end market have a segment of consumers who have low income, these consumers normally do not value the quality, and they just want a product which just fill their basic need. For them price of product matters a lot. So China market has enough brands for that segment as well like Konka one of the brands mentioned in case study. Q-3: Explain how multinational companies can attack from above in order to enter good enough market. Sol: Leading multinationals in the premium market segment can attack from above. The goal for these organizations is to lower their manufacturing costs, introduce...
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