Question

A well-known European stereo system manufacturer, EuroFi, sells many stereo systems in European countries. Its products are floundering in the United States, however, because its designs stress cool style rather than powerful functionality and innovative features. Conversely, Asian competitors meanwhile stress function and innovation over style and design; their sales have been consistently grown over the past several quarters.

At this point, after a weekend retreat assessing their situation, EuroFi’s senior executive company realization, tough as it is to admit to, that they misunderstood consumer preference in the United States. They had thought that Americans’ growing appreciation of style and image, perhaps best exemplified by the iPhone craze, would extend to their particular product line. But, data indicates otherwise.

Which of the following questions most helps the European manufacturer mentioned in the prompt, decide whether to export stereos to Canada?

1. What new stereo technology is currently available?

2. Do Canadians value design over function?

3. Should the company hire a new designer for its products?

4. Is it possible to increase existing stereo lines’ functionality?

5. What percentage of Canadians purchases stereos online?

Answer 1

The question that helps the European manufacturer mentioned in the prompt, most in deciding whether to export stereos to Canada is option 2) Do Canadians value design over function?

This is because the key takeaway for the company from the floundering business in the United States has been that people in the US tend to prefer powerful functionality and innovative features in their stereo systems over style and design. The company was late to realize and admit that mistake in the US market because of which their Asian competitors were able to outperform them. Therefore, in light of this experience, the European manufacturer mentioned in the prompt should do their market research on whether the Canadians value design over functionality before exporting stereos to Canada.