same circumstances for the sales of the iPhone in the United States, the Koreans felt the phone was not as good as their current phones and was somewhat out of date. (Web-Books.com) In the case, found by Hilfiger that the demand of the cotton sweaters in Europe is very low, so Hilfiger created a line of more luxury items to adjust to the European preference. He set up a design staff to match the European demands. These product changes led to the raise of production costs, which result in the higher price in Europe than in the United States. Problems of higher price in Europe than in USA Price is the direct factor that affects total cost recovery, so the higher the price, the better for company to get profit. However, if the price is different and does not value the price or does not in expected quality, it may dissatisfy customers. Customers may plan to consume in other companies because they no longer have confidence to the company. Basically, the production cost would be the same in a product, so the price for the product is probably same. However, the reasons why price is higher in the Europe is the extra requirements from the customer led to the company increase the production cost. This change will increase the load for the Europe market when it has unsold stock. Whereas it is less pressure in the US, because its production cost is normal. When the ability of production is limited, the company should consider gain maximum revenue instead of considering other