Pluto Inc., an American leather goods manufacturer, produces and sells a wide range of leather bags, wallets, purses, and belts. It recently opened an outlet in Mexico. However, since Mexico's per capita income is approximately one-third that of the United States, Pluto's sales have dipped. Moreover, the extent of available financing in the country is limited. With regard to global marketing research, the dip in Pluto's sales can be attributed to which of the following organizational issues?

Question

Jewel Wong

Business

17 July, 10:54

Pluto Inc., an American leather goods manufacturer, produces and sells a wide range of leather bags, wallets, purses, and belts. It recently opened an outlet in Mexico. However, since Mexico's per capita income is approximately one-third that of the United States, Pluto's sales have dipped. Moreover, the extent of available financing in the country is limited. With regard to global marketing research, the dip in Pluto's sales can be attributed to which of the following organizational issues?

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Knox · Answer 1

Answer: Cultural barriers

Explanation: Pluto company was an american company. Earlier it was operating its business in a country where the income of individuals is quite high.

In the given case, the company did the mistake of introducing the same product with same price in a country where individual income is very low. The management of the company failed to study the culture regarding the preference of the customers with respect to price of the product.

Hence from the above we can conclude that the issue are cultural.