Renault and its rivals are racing to offer middle-class consumers a new value proposition by selling cars for the equivalent of $10,000 or less.On the heels of Renault's success with Dacia Logan comes the $2,500 Nano from India's Tata Motors.This illustrates that:
A)consumers are looking for low price irrespective of quality.
B)Renault is overcharging for their cars compared to their competitors.
C)higher product development costs are a driving force behind globalization.
D)market success depends on reaching a threshold of acceptable quality for consumers.
E)cars are not very popular in emerging markets like India.

Question

Quizplus · Accepted Answer

The success of Dacia Logan and the introduction of the Nano suggest that consumers are interested in affordable cars, but only up to a certain quality threshold. Therefore, reaching an acceptable level of quality is crucial for market success, as consumers are not willing to sacrifice quality completely for a low price.

Renault and Its Rivals Are Racing to Offer Middle-Class Consumers