The quality of Hyundai vehicles has increased dramatically. Its cars now rank at the top of the list in vehicle quality, exceeding even Toyota. To management's surprise, this has not led to an increase in sales. From the standpoint of capabilities, what can we conclude about Hyundai's quality?
A) The increased quality fails the "value" test.
B) The increased quality fails the "rare" test.
C) The increased quality fails the "costly to imitate" test.
D) The increased quality fails the "nonsubstitutable" test.

Question

Quizplus · Accepted Answer

The fact that the increased quality has not led to an increase in sales suggests that the increased quality fails the "value" test. Customers may not see the added quality as worth the extra cost, and therefore may not be willing to pay more for Hyundai vehicles.

The Quality of Hyundai Vehicles Has Increased Dramatically