To answer the next 3 questions, refer to the following example. In 2003, Porsche unveiled its new sports-utility vehicle (SUV), the Cayenne. With a price tag of over $40,000, the Cayenne goes from 0-62 mph in 9.7 seconds. Porsches decision to enter the SUV market was in response to the runaway success of other high-priced SUVs such as the Mercedes Benz M class. Vehicles in this class had generated years of very high profits. The cayenne certainly spiced up the market, and Porsche subsequently introduced the Cayenne Turbo S which goes from 0-60 mph in 4.8 seconds and has a top speed of 168 mph. The price tag for the Cayenne Turbo S? Over 107,000 in 2012. Some analysts questioned Porsches entry into the luxury SUV market. The analysts were concerned not only that Porsche was late entry into the market, but also that the introduction of the Cayenne would damage Porsches reputation as a maker of high performance automobiles.

9.7 Erosion. In evaluating the Cayenne, would you consider the possible damage to Porsches reputation? How does this relate to erosion?