To overcome this problem when selling to less-affluent consumers in developing countries, many companies make simpler or smaller versions of their products that can be sold at lower prices. Others have introduced new, more affordable brands for global markets. This is known as a(n)________ problem.
A) price escalation
B) demand escalation
C) inflation
D) skimming price
E) deflation

Question

Quizplus · Accepted Answer

The described problem is related to price escalation, which occurs when products have higher prices in foreign markets due to transportation costs, taxes, and other expenses. To overcome this, companies create simplified or smaller versions of their products or even introduce new brands at more affordable prices.

To Overcome This Problem When Selling to Less-Affluent Consumers in Developing