GWD-22-12

hedge

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A certain automaker aims to increase its market share by deeply discounting its vehicles’ prices for the next several months.  The discounts will cut into profits, but because they will be heavily advertised the manufacturer hopes that they will attract buyers away from rival manufacturers’ cars.  In the longer term, the automaker envisions that customers initially attracted by the discounts may become loyal customers.

 

In assessing the plan’s chances of achieving its aim, it would be most useful to know which of the following?

 

1. Whether the automaker’s competitors are likely to respond by offering deep discounts on their own products

2. Whether the advertisements will be created by the manufacturer’s current advertising agency

3. Whether some of the automaker’s models will be more deeply discounted than others

4. Whether the automaker will be able to cut costs sufficiently to maintain profit margins even when the discounts are in effect

5. Whether an alternative strategy might enable the automaker to enhance its profitability while holding a constant or diminishing share of the market

我选了C,答案是A,为什么?

l980053

公司目标是通过打折吸引竞争对手的顾客增大市场分额。A如果回答是，那么公司目标可能不能实现，回答不是，那公司目标就有可能实现。

C只是自身车型的比较，无论打折多少，都是自己的这个车型争夺自己那个车型的市场，而不能争夺对方的市场，市场分额可能不变。

gonghao

company wants to use discount strategy to attract the buyer from its rival player.But if the same situation comes up in the rival's store.The company has nothing to answer.