Question

Jenny manages sales dealership of high-end luxury brand of automobile. Her target market is limited to a specific social class, which restricts her customer base. If her company creates cars for middle class consumers she risks:__________

Answer 1

Answer:

The correct answer is letter "A": cheapening his brand .

Explanation:

Businesses of luxury objects such as advanced-technology vehicles have a differential advantage related to other carmakers. Most of their customers prefer those cars because they give them a certain status in society and are accessible to a few people because of the high prices.

Then, if Jeff's companies decide to manufacture cars for the middle class, the dealer risks cheapening the brand but the number of customers could exponentially increase.