Juan is researching new cars.He would like to buy a car that is both good quality and a good price.After much consideration,Juan purchases a car from a manufacturer where the initial price paid is high,but the cars are known to have much lower maintenance costs.The pricing strategy employed by the dealership where Juan bought his car is _____________________.

Question

Quizplus · Accepted Answer

Value pricing considers the whole deliverable and its possible sources of differential advantage-image, service, product quality, personnel, innovation, and many others-the whole gamut of elements that create customer benefit. For instance, Toyotas and Hondas cost more to purchase initially than other comparable vehicles, but they last longer, require fewer repairs, are more fuel-efficient, and hold their resale value much better; overall, they have a lower lifetime cost of ownership.

Juan Is Researching New Cars