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Darren wants to impress his new girlfriend whose father is a nationally known race car driver. He drives his Lexus to the Chevrolet dealer and without negotiating, trades the Lexus in for a new smoke gray 545-hp Nissan GT-R. The car cost him $174,990 but he feels it is worth it to impress his girlfriend. What specific type of product did Darren purchase?

User CSan
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2 Answers

2 votes

Final answer:

Darren bought a specialty good, a Nissan GT-R, aiming to impress, whereas Marvin needs to consider price and the seller's reputation when buying a used car, deciding on a balance of cost and reliability.

Step-by-step explanation:

Darren purchased a specific type of product known as a specialty good. This category includes items that are unique or luxurious, often carrying a high price tag and acquired after extensive buyer research and comparison. The Nissan GT-R that Darren bought qualifies as a specialty good due to its high performance, brand prestige, and cost. This is in contrast to the decision-making process Marvin must undertake when purchasing a used car, which involves balancing price with potential risks and the reputation of the seller.

Marvin should conduct a thorough evaluation of the used cars he is considering, taking into account not just the mileage, exterior appearances, and age but also factors like the car's mechanical condition, the reputation of the dealer, and any warranties or guarantees offered. The difference in price between the two cars could reflect differences in these unobservable qualities. Therefore, making a decision based solely on price might not be the best approach. Instead, Marvin should consider all factors and decide based on which car provides the best balance of price and quality.

User Bentedder
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2.9k points
2 votes

Answer:

Darren bought a differentiated product.

Step-by-step explanation:

The differentiated product enjoys a distinction from similar products/brands in the market. This distinction may be real or psychological. Real distinction reflects from the ingredients, quality, utility, or service which the product gives. Psychological distinction is a feature of subtle sales appeals.

Other types of product include Customized, Augmented, and Potential Products. Customized Products are built to customers' specifications. Augmented Products are products with added manufacturers' improvements. Potential Products are tomorrow's products limited by economic and technological resources.

User Uzoma
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