MGT301 Principles of Marketing GDB Fall 2020 Solution / Discussion

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MGT301 GDB 2 Fall 2020 Solution idea:

 

In May of 2019, the average price of a new car purchased in the U.S. climbed to $36,718, with interest rates hovering around 6%, according to automotive information site Edmunds. That’s up from $35,742 in 2018, which was already a 2% increase from 2017, according to Kelley Blue Book. This increase in automobile prices is due to a number of factors, including rising interest rates and higher average transaction prices, Edmunds reports. In 2018, interest rates began to increase, and by April 2019, the annual percentage rate (APR) on new vehicles averaged around 6.4% — marking a new record since 2009, according to Edmunds. Although interest rates fell to 5.7% as of September, they remain inflated, and the cost of purchasing a new car is “still a lot higher than it was a few years ago. “In September 2014, by comparison, the average APR on a new car was just 4.2%. Additionally, shifts in consumer preferences and industry trends have led, in part, to higher average transaction prices. That’s because there’s a trend toward bigger cars, rather than compact ones, with more advanced features. Think built-in navigation, Bluetooth capabilities, high-tech safety features and more, which “certainly helps to move prices upward,” Ivan Drury, a senior manager of industry analysis at Edmunds, tells CNBC Make It.

MGT301 Principles of Marketing GDB Fall 2020 Solution

MGT301 GDB 2 Solution Fall 2020 - 2021 ||Principles of Marketing||

MGT301 GDB 2 Fall 2020 Solution idea:

 

These are four Points:

  1. Material using in it was Imported from countries.
  2. Just Because of Taxes increasing
  3. Many other brands competitors
  4. Advance tech things use now than before

In May of 2019. the average price of a new car purchased in the U.S. climbed to $36.718. with interest rates hovering around 6%, according to automotive information site Edmunds. That's up from $35,742 in 2018, which was already a 2% increase from 2017, according to Kelley Blue Book. This increase in automobile prices is due to a number of factors, including rising interest rates and higher average transaction prices, Edmunds reports. In 2018, interest rates began to increase. and by April 2019, the annual percentage rate (APR) on new vehicles averaged around 6.4°/o marking a new record since 2009, according to Edmunds Although interest rates fell to 5.7% as of September, they remain inflated. and the cost of purchasing a new car is still a lot higher than it was a few years ago. In September 2014. by comparison, the average APR on a new car was just 4.2%. Additionally, shifts in consumer preferences and industry trends have led, in part. to higher average transaction prices. That's because there's a trend toward bigger cars, rather than compact ones, with more advanced features. Think built-in navigation, Bluetooth capabilities, high-tech safety features, and more, which "certainly helps to move prices upward," Ivan Drury, a senior manager of industry analysis at Edmunds, tells CNBC to make it.

MGT301 GDB Question

Total Marks 10
Starting Date Monday, February 01, 2021
Closing Date Monday, February 08, 2021
Status Open
Question Title Price and Pricing
Question Description

Principle of Marketing (MGT301)                                                              Fall, 2020

Graded Discussion Board No.2

Due Date: February 08, 2021.

Total Marks: 10 Marks

Weightage: 05

Topic: “Price and Pricing” 

 

NOTE: There is no grace period in case of GDB

 

Learning objectives:

 

The core objective of this case base study is to acquaint the students with the process of determining and setting the price of a product.

 

Learning Outcomes:

 

After attempting this case, the students will be able to comprehend that considering which internal and external factors the organizations adopt appropriate pricing strategies.

 

Context:

 

If we talk about the automobile sector in Pakistan, we see it as a fastest growing sector as its annual production has increased from 46,538 units in 2001 to 298,083 units in 2019. This industry has provided enormous job opportunities to the masses. When it comes to the automobile industry, it is pertinent to mention the market giants such as Honda, Suzuki, Toyota, Hyundai and KIA respectively. These international brands are well known for producing Sedans and SUVs and are competently serving different social classes in Pakistan. If we see the facts and figures, it is quite apparent that the prices of automobiles have significantly increased (almost by 30 to 40%) in the last three years. Although the automobile market is flooded with plentiful options, this increase in prices is a point to ponder.     

 

Point of discussion:

 

As per your understanding what could be the four probable reasons due to which the prices of automobiles jumped so high in the past three years?

 

Marking Scheme:

 

The total marks of this GDB are 10; each correctly mentioned reason carries 2.5 marks. Avoid irrelevant text/material while answering the question.

 

Student’s Guide: 

  • Keep your discussion with the mentioned context as irrelevant answers and material will be graded Zero. 
  • Do not copy/paste the text/paragraphs from any source including internet.
  • Be careful from those blogs which are promoting cheating culture among our students and killing their creativity and critical thinking. Answers copied from such blogs will be straightaway marked as zero. Similarly, any relevant or irrelevant material copied from internet sources will get the same treatment. It can seriously damage your grades.

 

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