I will include the data in Viewbag before redirecting to the page.

A common (and good) method is to use @Html.DropDownList() or @Html.DropDownListFor<>() in your view. However, you should prefer strongly-typed models over less-structured data in the ViewBag.

See also:

• How to write a simple Html.DropDownListFor()?
• When to use ViewBag, ViewData, or TempData in Mvc3

$(document).ready(function () {
    $.get('/Home/GetProducts/' + $(this).val(), function (response) {
        var products = $.evalJSON(response);
        var ddlSelectedProduct = $("#SelectedProduct");

        // clear all previous options 
        $("#SelectedProduct > option").remove();

        // populate the products 
        for (i = 0; i < products.length; i++) {
            ddlSelectedProduct.append($("<option />").val(products[i].Value).text(products[i].Text));
        }
    });
});

Or

@Html.DropDownListFor(
    x => x.SelectedProductId, 
    new SelectList(ViewBag.Products as SelectList, "Value", "Text"),
    "-- Select Product--"
)