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 came 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 both Renault's Dacia Logan and Tata Motor's Nano indicate that while consumers are looking for affordable options, they still demand a certain level of quality. Therefore, reaching a threshold of acceptable quality for consumers is an essential factor for market success in this segment.

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