When Chrysler launched its Fiat 500 subcompact in 2011 the
When Chrysler launched its Fiat 500 subcompact in 2011, the company offered three versions (Lounge, Sport, and Pop), having 14 exterior colors, 14 seat colors, six wheel styles, two transmission types, and a range of graphical designs that can be applied to the car’s body panels—providing a total of about 500,000 combinations. [J. Bennett, “Options Overload for Fiat’s 500,” WSJ (November 10, 2010), B1] Discuss the additional costs that Chrysler might incur from having so many options for the Fiat 500. Do you think that customers will be willing to pay significantly different prices for option variations? Why or why not?

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