Module 7 Test: Strategizing Pricing and Distribution
Module 7 • 10 Questions
Question 1 of 10
0 of 10 answered
The Tata Nano was priced at ₹1 lakh when the cheapest competing car was ₹3 to 4 lakh, and its quality was acceptable rather than premium. On the price-quality matrix it therefore occupied a well-regarded cell, yet it failed with its intended buyer. Which cell did it occupy, and what does its failure demonstrate?
A
False Economy strategy, and it shows that medium quality at a medium price satisfies nobody in a segmented market
B
Good Value strategy, and it shows that the matrix is meaningless without a defined target segment, because the positioning as a cheap car destroyed the buyer's status
C
Super Value strategy, and it shows that a firm cannot sustain high quality at a low price without economies of scale
D
Economy strategy, and it shows that low quality can never be rescued by a low price however large the price gap