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economy economic low premium penetration luxury skimming high

economy economic low premium penetration luxury skimming high

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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11:28 ◄ Search Done Iti-iad-prod.instructure.com AA ☆ that they will pay more for the leather seating and upgraded features. When the company offers a lower end model, those customers' expectations are not met. Therefore they perceive it as a low price and Answer quality model (a.k.a an Economy offering). For the mainstream customer, though, the offer is still high quality, in comparison to the other brands and yet low price for a Mercedes, so within reach. So the mainstream buyer's perception of the cars is that it is using a Answer strategy. economy economic low Return penetration premium il 5G 46 luxury skimming Submit high Submit
Transcribed Image Text:11:28 ◄ Search Done Iti-iad-prod.instructure.com AA ☆ that they will pay more for the leather seating and upgraded features. When the company offers a lower end model, those customers' expectations are not met. Therefore they perceive it as a low price and Answer quality model (a.k.a an Economy offering). For the mainstream customer, though, the offer is still high quality, in comparison to the other brands and yet low price for a Mercedes, so within reach. So the mainstream buyer's perception of the cars is that it is using a Answer strategy. economy economic low Return penetration premium il 5G 46 luxury skimming Submit high Submit
11:28 ◄ Search Done il 5G 46 Iti-iad-prod.instructure.com AA Return Submit We will work on a customer empathy analysis through the fill in the blanks paragraph below. To be able to answer the questions, you are asked to empathize with two target segments for Mercedes and BMW: 1. Primary target of luxury car buyers 2. Secondary target of currently mainstream, but ideally prospective luxury buyers While the video case title suggests cheap luxury cars do not succeed in the automotive industry, there is a subtle point made towards the end: Mercedes reports that 2/3 of CLA buyers return to buy a higher class Mercedes later on. Given the main goal with cheaper offers, is to expand out of the luxury buyer market and into the top of the mainstream market, one may argue that this strategy is actually successful. Overall customer perception of value luxury car manufacturers offer is one of high quality and high price, in other words a Answer offering. The cheaper makes for these cars, on the other hand, appeal to different target segments, differently. The loyal Mercedes or BMW driver appreciates the Answer benefits enough that they will pay more for the leather seating and upgraded features. When the company
Transcribed Image Text:11:28 ◄ Search Done il 5G 46 Iti-iad-prod.instructure.com AA Return Submit We will work on a customer empathy analysis through the fill in the blanks paragraph below. To be able to answer the questions, you are asked to empathize with two target segments for Mercedes and BMW: 1. Primary target of luxury car buyers 2. Secondary target of currently mainstream, but ideally prospective luxury buyers While the video case title suggests cheap luxury cars do not succeed in the automotive industry, there is a subtle point made towards the end: Mercedes reports that 2/3 of CLA buyers return to buy a higher class Mercedes later on. Given the main goal with cheaper offers, is to expand out of the luxury buyer market and into the top of the mainstream market, one may argue that this strategy is actually successful. Overall customer perception of value luxury car manufacturers offer is one of high quality and high price, in other words a Answer offering. The cheaper makes for these cars, on the other hand, appeal to different target segments, differently. The loyal Mercedes or BMW driver appreciates the Answer benefits enough that they will pay more for the leather seating and upgraded features. When the company
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