When Chinese automakers recently began exporting cars, rather than focusing on developed nations in the West, they

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When Chinese automakers recently began exporting cars, rather than focusing on developed nations in the West, they are shipping autos to emerging markets in countries such as Algeria, Russia, Chile, and South Africa. In these markets, even used vehicles from multinational manufacturers are relatively scarce—and relatively expensive. The Chinese automakers, whose priority is keeping costs down rather than design or even safety, applied a penetration-pricing strategy. A woman in Santiago, Chile, who bought a new Chery S21 explained, “The price factor is fairly decisive. I paid $5,500 new and full. Toyota with similar features costs around $12,000.” Why do you think Chinese automakers chose that pricing strategy? Do you think it was successful? As Chinese regulators pressure these manufacturers to make their cars safer, do you think they will be able to keep their prices low compared with those of the international automakers? Why or why not? 

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Contemporary Marketing

ISBN: 978-1133628460

16th edition

Authors: Louis Boone, David Kurtz

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