Question

marketing management

please read the case answer question 1. provide references.

y CHAPTER 9 | PRICE THE PRODUCT 351 CBC Video Case ELECTRIC CARS e potential purchasers of The technology (i.e, new electric cars) is ex the government is part owner of GM-the maker by offering an attractive pected to come to market next year, and it will be of the Volt ntaiois looking to gve quite expensive. The Chevy Volt is expected to start Lastly, there is also the concem as to where can at a base price of $40,000. Ford, Chrysler, Nissan, owners will go to plug in when a car needs a charge. ebate to anyone buying an and Toyota areall acing to roll out electrics in the The details regarding the accessbility of charge sta- incentive to bup The Ontario provincial government program that offers a rebate t unveiled a new rog car or plug-in hybrid. This program is pre next coming years. Tesla, which already has a sports tions for ead to begin next summer and will help early model available, is looking to launch a sedan ver- movers by offering a rebate between $4,000 and sion at $50,000. $10.000 off the purchase price of a new car. The This video case raises some concerns hareis based on the size of the vehicle's battery Will the incentive be sufficient to drive con- for new electric cars grow? the car battery, the bigger the discount. sumers to buy vehicles that cost more upfront and The hope is to make 5 percent of all vehicles electric will be slower and have less range?" by the year 2020 plug-in requirements are not fully dlear. ver-The new technology s here. But, will this incen tive be sufficient to entice potential consumers to purchase electric cars? How quicdly will the market Others also question Ontario's motives, since Questions 1. What types of consumers are likely to be the first to buy these new electric cars? Answer in relation to the adopter categorization on the basis of relative time of adoption of innovations 2. What stage of the adoption process does this new program influence? Refer to the five stages that a consumer goes through in the process of adopting a new product. 3. What do you believe will be the strongest motivations to entice the purchase of an electric car? Do you think the Ontario incentive program is attractive? Do you think this rebate program will cause a jump start for the electric car market? 4. Comment on the introductory prices for the new electric cars? What type of pricing strategy is being adopted with these new products? Do you believe that the introductory prices are supported? Are the prices in line with the offerings? Do you think enough buyers will want the product at the introductory prices? prepared by Cameron Macintosh and is based on "Electric Cars," National, CBC video, Toronto, 15 July 2009 (time: 2:01 min) Source: This case was MyMarketinglab TO view the CBC videos go to pearsoned.ca/mymarketinglab.com

Answer 1

As research suggest (reference 1), economic incentives works in a positive manner to reinforce the adoption of environment friendly measures and in this case also, the discount on the electric cars is likely to incentivize a lot of people to go for this model.

Early adopters, as per the adoption cycle, are likely to be person who are young and open to exploring things. Also because of their relatively younger age, their income levels also tend to be lower and thus an economic incentive does help them to decide in favor a scheme which provides a useful product and also good economic incentives.

Thus in this case early adoption is likely to be done by students or new graduates who have recently passed out and are looking to own a car and this is because of their natural propensity to try new things and also the financial incentive being provided.

References:
1)Usmani, F., Steele, J., & Jeuland, M. (2017). Can economic incentives enhance adoption and use of a household energy technology? Evidence from a pilot study in Cambodia. Environmental Research Letters, 12(3), 035009.