Which of the following, if true, supports the argument for a product adaptation strategy?

A) Tandem's product assembly costs have been increasing over the years.
B) Mountain bikes are classified as high-involvement purchases.
C) Models comparable to Rider 360 have not done well in Australia.
D) The level of differentiation between current Tandem offerings is low.
E) Australian regulations insist on local sourcing of components.

Answer: C
Explanation: C) Using a product adaptation strategy, a company significantly changes its product to meet local conditions or wants. Choice C tells us that members of the Australian target market, for whatever reason, have not wanted bicycles similar to the Rider 360. In other words, the Rider 360 is unlikely to do well in the Australian market unless Tandem adapts the product to the needs and wants of the Australians. Choice A is not relevant to this decision. It sounds like the assembly costs will increase whether the company uses product adaptation or not. Choices B and E do not discuss product adaptation. Choice D is a general statement about differentiation within Tandem's product line. However, it doesn't tell us anything about whether Tandem has the ability to adapt the Rider 360 for the Australian market.