Sports utility vehicle

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Sports utility vehicle

by sudhir3127 » Thu Nov 27, 2008 4:20 am
More and more consumers are being attracted to sport utility vehicles because they are safer to drive than regular cars, and because of the feeling of power a person experiences when driving a sport utility vehicle. In its current advertising campaign, Jupiter Auto Company emphasizes the low price of its new sport utility vehicle compared to the price of other such vehicles. However, this marketing strategy is unwise because



a. Jupiter's sport utility vehicle is not as safe as those produced by competing automobile manufacturers.

b. if Jupiter reduces the price of its sport utility vehicle even further, Jupiter would sell even more of these vehicles.

c. the retail price of Jupiter's most expensive luxury car is less than that of its new sport utility vehicle.

d. most consumers who purchase sport utility vehicles are also concerned about the reliability of their vehicle.

e. consumers who purchase sport utility vehicles associate affordability with lack of safety.

OA after some discussion!!!
Source: — Critical Reasoning |

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by slash » Thu Nov 27, 2008 4:47 am
However, this marketing strategy is unwise because

The above line is pointing to the marketing strategy is unwise, so we have to attack the marketing strategy followed by jupiter. Consumers are concerned about safety and power but Jupiter advertise its low cost of sports vehicles.

a. Jupiter's sport utility vehicle is not as safe as those produced by competing automobile manufacturers.
This relates to the safety of the vehicle but no points to attack the marketing strategy.

b. if Jupiter reduces the price of its sport utility vehicle even further, Jupiter would sell even more of these vehicles.
Jupiter has prices lower than other comp, so reducing still more cheaper may not be the reason.

c. the retail price of Jupiter's most expensive luxury car is less than that of its new sport utility vehicle.
The price comparison between luxury can sports car is no where related to the argument.

d. most consumers who purchase sport utility vehicles are also concerned about the reliability of their vehicle.
The same as option A

e. consumers who purchase sport utility vehicles associate affordability with lack of safety.
This one is correct. Consumers who purchase sports vehicle consider this as affordable with lack of safety

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by Tryingmybest » Thu Nov 27, 2008 8:08 am
one more vote for E.

Jupier's cars are cheper=> Affordable.

According to E, affordability => less safe.=> unwise strategy.

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by sudhir3127 » Fri Nov 28, 2008 4:35 am
OA is E

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by kris77 » Thu May 12, 2016 1:21 pm
Answer E seems to be logical one out of other answer choices