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Scenario 6.2 Use the Following to Answer the Questions

question 30

Multiple Choice

Scenario 6.2
Use the following to answer the questions.
Both the Racer and the Strider were very popular choices for family vans. Racer noticed that the majority of its customers were families with 3 or more children, and so they developed commercials that featured larger families. They also produced commercials that featured Hispanic-looking actors and for some markets, in Spanish. Alicia Desario and her husband were currently shopping for a van for their family. As Alicia listened to an advertisement on the television about the Strider, she noticed that the Strider cost about $27,000 and had gas mileage of about 17 mpg. She recalled an earlier ad for the Racer, which also cost about $27,000, but had gas mileage of about 21 mpg. She also liked the way the family was portrayed in the Racer ad, showing the children in the back seats having plenty of room, watching the DVD players, and having their own sound controls. When she spoke to Carlos, her husband, about how much she liked the Racer van, he replied that it had too low of gas mileage at only 16 mpg.
Since Alicia didn't agree with that number, he produced a magazine ad that supported his claim of the 16 mpg for the Racer. Alicia couldn't believe that she had made such an error in hearing what the gas mileage was for the Racer and the Strider.
-Refer to Scenario 6.2. Racer's production of commercials that featured Hispanic actors and the Spanish language is an example of marketing to:

Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to production or sales levels, including materials and labor costs.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Hour-long Facial

A skincare treatment lasting approximately 60 minutes, focused on improving the health and appearance of the skin on the face.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition on factors other than price.