Assume a new electric automobile is developed that performs much like gasoline except that it doubles a car's miles-per-gallon.However,electricity costs two and one-half times as much as gasoline.Why do you think such a new product might fail?
A)poor product quality
B)insignificant point of difference
C)too little market attractiveness
D)poor execution of the marketing mix

Question

Quizplus · Accepted Answer

The new electric automobile might fail because the cost savings from improved fuel efficiency are negated by the higher cost of electricity, resulting in an insignificant point of difference compared to gasoline cars.

Assume a New Electric Automobile Is Developed That Performs Much