Which of the following is not a risk normally associated with bottom-of-the-pyramid strategies?
A. New products may be perceived as exploiting the privileged customer with substandard products.
B. A low-end version of a brand may detract from the overall brand attractiveness.
C. The new low-cost products they develop may cannibalize the sales of their core products.
D. Entrenched competitors can impact the ability of the new firm to enter the market successfully.
Answer: A
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The expected value with perfect information:
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