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9966 [12]
3 years ago
9

You have just won a contest where the prize is either a new motorcycle, with an MSRP of $30000, or $20000 in cash. You do not ha

ve a motorcycle license, nor do you plan on getting one. You estimate you could sell the motorcycle for $25000. Which prize should you choose, and what is the value of that option using the valuation principle
Business
1 answer:
Vilka [71]3 years ago
4 0

Answer: The motorcycle because you can sell it for more cash than the cash prize option. Value = $25000 (the price you can sell it for.)

Explanation:

Based on the scenario in the question, we've been given three options which are a new motorcycle, with an MSRP of $30000, or $20000 in cash.

The manufacturer's suggested retail price (MSRP) is simply the price that the producer of a product recommends ifor the product to be sold in retail stores.

Based on the scenario, the best option will be to choose the motorcycle. This is because it can sold for an amount that is not than the cash prize option of $20,000 since the motorcycle is valued at $25000.

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Branding can be seen in the case of Google company and the fact the name of the company was added to the dictionary because this shows the name of the company and products of it are identified by thousands of consumers, which shows how effective was the branding strategy of the company to define the identity of the company and convey this idea to customers.

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