Question

Cian, an automobile manufacturer, offers a new car model with features comparable to that of another popular brand. However, the Cian model is priced lower than its competitor and includes a longer warranty. Cian is most likely following a more-for-the-same strategy.1. True2. False

Answer 1

Answer:

False because Clan is most likely following more for less strategy.

Explanation:

Value proposition is a situation where the customer is answered for his question as to why he should prefer the sellers brand. It is an overall positioning strategy followed by the sellers. Such a strategy has five different propositions which are as follows out of which the last fifth one is the one followed by Clan in which the seller offers more benefits to the existing buyers of a different brand at a lower cost.

• More for More : More benefits at a more higher prices as those offered by the competitors.
• More for the same: More benefits at the same price offered by the competitors.
• The same for less: Under this same benefits at a lesser price is offered as compared to those by the competitors.
• Less for much less: Lesser benefits at lesser price.
• More for less: Followed by companies for achieving impressive positions in the market by offering more benefits at lower costs.