Question

Suppose that, instead of developing its Datsun line for emerging markets, Nissan simply sold its existing models in those markets for half their original price. State the term used for this practice and explain why it is regarded as a form of price discrimination. Discuss why Nissan might choose this approach. Do you think it would be successful? Why or why not?

Answer 1

Answer:

Explanation:

(A) First Degree Price Discrimination

(B) it is regarded as a form of price discrimination because the current price at which Datsun models are sold, differs from the former price (the current price is half the original or former price).

Also, this is a deliberate action or business strategy taken by the Nissan automobile company so it is price discrimination.

(C) Nissan might choose this approach because (according to the question) there are emerging markets and the Datsun model of Nissan motors will soon go obsolete.

So since the first aim of a company is to make profit, instead of losing buyers of the old model completely, Nissan will sell the off at much lower prices.

(D) Yes, it will a success move if the company does not presently have the technology to adapt to the new or emerging market for different type or function of vehicles.