Quote:
Originally Posted by jamesqf
Ah, but you're bringing in other criteria to change the equation. The claim was that people wouldn't pay more for a small car than a big one. Those are some of the smaller cars on the market, and they're priced more than typical large cars, thus disproving the claim.
The problem is that you and the auto makers are thinking small car equals econobox, and of course and econobox is, by definition, cheap. But small can also be luxurious, performance-oriented, or just plain fun, and if you give your small car one or more of those qualities, it will sell at a substantially higher price than an econobox. For instance, MSRP on the base Mini is $28,550.
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You slipped a digit james.
$18,550
A persons willingness to pay a higher price for whatever depends on their
perception of the value provided by the item, either in function or status. Stop confusing NEEDS with desires. People need transportation. NOBODY NEEDS A PORSCHE! Some people spend all kinds of stupid money on things like that because they can. The rest of us have to balance function vs price.