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

Answer:

Turbo Tech has been able to offer more perceived value than Best Mobile

Explanation:

Turbo Tech has managed to market itself as a superior brand compared to Best Mobile. Through aggressive marketing, Turbo has convinced the industry that it is better than Best mobile.

Marketing is about creating brand perception. If customers agree with your arguments, the brand gains an advantage in the market. Perception is not reality. These two competitors have the same unit cost and market price. It could mean that their quality is also on the same level.

Turbo Tech has a better martketing strategy than Best Mobile.