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A car manufacturer is launching two versions of cars. A market study conducted revealed that the market can be divided between the economy and the
A car manufacturer is launching two versions of cars. A market study conducted revealed that the market can be divided between the economy and the premium segments. The reservation prices of the economy segment for the stripped down, and the fully loaded versions were Rs. 250,000 and Rs. 400,000 respectively while the same prices for the premium segment were Rs. 300,000 and Rs. 600,000 respectively. a) Present the above information in a graph. (Draw a representative diagram on your answer sheet. You don't need graph paper.) [5] b) Assuming that the stripped down version would be priced at the reservation price of the economy segment, state the range of price for the fully loaded version to avoid product cannibalization. [5]
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