Question

Cutter Ford Aiea for years marketed itself on the slogan "Cutter Ford Aiea: Where you make the deal." What car buyers said was that they could buy the same cars as at other Ford dealerships, but often paid lower prices when they shopped at Cutter Ford Aiea. Which of the following is true with regard to Cutter Ford Aiea's value proposition?

a.The same for less value proposition is mostly offered by marketers who sell higher quality upscale products or services
b.The same for less positioning involves meeting consumersâ lower performance orquality requirements at a much lower price
c.The same for less value proposition cannot generate profitsd.Discount stores and "category killers" rarely use the same for less value propositione.
d. Offering the same for less can be a powerful value proposition because everyonelikes a good deal

Answer 1

The correct answer to this question is D

Step-by-step explanation:

Offering the same value for less than what other sellers are willing to take is a strategy called below the market pricing.

According to the principles of Economics, lower prices often stimulate demand especially with commodities or goods that are categorised as price-sensitive or perfectly elastic. With goods that are perfectly elastic, small price changes lead to a great change in demand.

Traditionally, there are 4 Ps of marketing:

1. Product
2. Promotion
3. Place and
4. Price

What Cutter Ford Aiea has done with their positioning is to play around the price component of marketing by reducing the profit accruable so that they are able to win more market share at the cost of lower profit/sale but with higher profits as the turnover increases due to increased demand.

So everyone likes a good deal especially when the value proposition with competing offers remain the same.

Cheers!