You're the chief sales and marketing officer for Kia Motors. You've decided to price the standard, gas-powered Optima at $22,500. The company is also offering a plug-in hybrid model, which costs an extra $3,500 to manufacture, including the cost of R&D. What price do you assign to the plug-in hybrid, and why?
A) The Optima is your brand's low-end model, so you're pricing the Optima plug-in hybrid at $26,000 to fit with consumers' expectations.
B) New technology, like that found in the plug-in hybrid, is perceived as more valuable, so you price the vehicle at $28,500.
C) Consumers will not perceive a difference in the value of the two models, despite differences in manufacturing, so you price the plug-in hybrid equal to the standard model at $22,500.
D) Eco-friendly products are perceived as more valuable and prestigious, so you're pricing the plug-in hybrid at $35,200.
Correct Answer:
Verified
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