Answer : The larger car companies can target the customer in this situation by h
ID: 373607 • Letter: A
Question
Answer: The larger car companies can target the customer in this situation by highlighting the lower price of the product. These companies can also highlight in their promotional activities, the comfort offered by the interiors of their car which makes them suitable for the long drives also.
The big car companies in their promotion can highlight the mileage offered by their car to attract the customers. They can highlight that in long run their cars will result in more saving in the fuel prices and this may offset the initial higher costs associated with their products.
Explanation / Answer
You are in the market for a new car. In the past, your budget has allowed you to exceed $25,000 for a vehicle. However, there is a recession underway, gasoline prices have risen and while there is nothing definite, you are concerned about job security. You are looking to buy a smaller car with good gas mileage but comfort on the long commute has you looking towards a bigger car. What marketing strategies can the small car companies employ to win you over? What about the larger car company?