The Hummer was an attention-getting SUV that sold for $80,000 in a limited number of outlets.Then,General Motors proved the smaller version for $50,000 could be sold in many more outlets.To cover costs and reach the market faster,the Hummer 2 shared some parts with other GM cars.To which customer effects did Hummer marketing managers need to pay particular attention?
A)The original Hummer is prestige priced; therefore, the price of Hummer 2 should make sense to customers and reflect differences in the perceived value of the products offered.
B)High gas mileage will be important for Hummer 2.
C)Colour choices will be important for Hummer 2.
D)Comfort and space for families will be important for Hummer 2.

Question

Quizplus · Accepted Answer

Since the original Hummer was prestige priced, the marketing managers need to ensure that the price of the Hummer 2 makes sense to customers and reflects the differences in the perceived value of the products offered. They need to communicate the value proposition of the Hummer 2 clearly to justify the lower price point while maintaining a premium image. Factors such as gas mileage, color choices, comfort, and space for families are important for any SUV, not specific to the Hummer 2.

The Hummer Was an Attention-Getting SUV That Sold for $80,000