1. Many of these products are offered by manufacturers of other auto-part products. What product-market growth strategy does this represent for these companies?
2. If these products do not deliver the benefits claimed, should marketers be allowed to continue selling them?
Four dollars a gallon? Five dollars a gallon? Six dollars or more a gallon? Perhaps gas prices will be even higher by the time you read this. Consumers stuck with gas-guzzling SUVs are flocking to fuel-saving gadgets to increase their fuel economy. Enterprising marketers are answering the call with do-it-yourself products that supposedly increase mileage. For $150, Water4Gas uses hydrogen to convert a car into a water-fueled hybrid. For $170, Fuel Saver 7000 will treat your fuel with a vaporization process. For only $35 to $65, you can outfit your engine with a Turbonator, Cyclone Fuel Saver, or Spiral Max, fans that swirl incoming air. Many other devices are available that supposedly enable an automobile to burn fuel more efficiently. However, the Environmental Protection Agency and the Federal Trade Commission are not convinced these product really do enhance fuel economy. Many consumers are also unaware that installing such products may void their automobile’s factory warranty. The makers of these products counter that, although some products don’t measure up, others do, and that the EPA and FTC reports are too broad.