Question

Best Mobile and Turbo Tech Inc. are two competitors in the mobile phone market. The cost incurred by each company to manufacture smartphones is $200 per unit. Although both the companies sell their smartphones at the same price, Turbo Tech has a larger market share in the laptop industry. What does this imply?- Turbo Tech has a cost advantage over Best Mobile.- Best Mobile has a competitive advantage over Turbo Tech.- Turbo Tech has been able to offer more perceived value than Best Mobile.- Best Mobile has created a higher value gap than Turbo Tech.

Answer 1

The answer is, Turbo Tech has been able to offer more perceived value than Best Mobile

Step-by-step explanation:

In marketing, the customers’ perceived value refers to the merits they attach to a service or product due its ability to fulfill their expectations and demands in comparison with other products and services. The perceived utility between two products with similar quality and price may differ and this explains the reason why customers prefer Best Mobile products, especially laptops more than Turbo Tech.