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)insignificant point of difference
B)poor product quality
C)poor execution of the marketing mix

Question

Quizplus · Accepted Answer

While the electric automobile doubles the miles-per-gallon, the fact that electricity costs two and a half times as much as gasoline makes the cost savings insignificant for consumers. As a result, the new product does not offer a significant point of difference from gasoline-powered cars, making it unlikely to succeed.

Assume a New Electric Automobile Is Developed That Performs Much