The Saturn Corporation (Once a Division of GM)was Permanently Closed

question 17

Multiple Choice

The Saturn Corporation (once a division of GM) was permanently closed in 2009.What went wrong with Saturn?

• A) Saturn's cars sold at prices higher than rivals Honda or Toyota,so they could not sell many cars.
• B) Saturn sold cars below the prices of Honda or Toyota,earning a low 3% rate of return.
• C) Saturn found that young buyers of Saturn automobiles were very loyal to Saturn and GM.
• D) Saturn implemented a change management view that helped make first time Saturn purchasers trade up to Buick or Cadillac.
• E) all of the above

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Definitions:

Consumers

Individuals or groups that purchase goods and services for personal use, not for manufacture or resale.

Efficiency

The state or quality of being capable of producing desired results with a minimum expenditure of energy, time, money, or materials.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefits to society from the production and consumption of goods or services.

Property Rights

Legal rights to use, control, and benefit from owning property, both tangible and intangible.