The Chevrolet Prism and Toyota Corolla are the same car, made on the same assembly line by the same people, using the same parts, and have the same warranty. Yet, the baseline model of the Toyota Corolla sells for $250 more than its counterpart. We can conclude that Toyota Corolla has ________.

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Quizplus · Accepted Answer

The fact that the baseline model of the Toyota Corolla is able to sell for $250 more than its counterpart despite being the same car, made on the same assembly line by the same people, using the same parts, and having the same warranty as the Chevrolet Prism, suggests that Toyota has higher brand equity. This likely means that consumers perceive Toyota as a more desirable and reliable brand, which enables the company to charge a premium for its products.

The Chevrolet Prism and Toyota Corolla Are the Same Car