Solved

You're the Chief Sales and Marketing Officer for Kia Motors

Question 135

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents