Question

Reginald Inc., a well-known automobile manufacturer, advertised the launch of its new solar powered car, Brandon. There was so much hype about the car in the market that thousands of customers prebooked it. However, after the delivery of the cars, several customers complained that the power windows did not work properly in solar power and that the brakes were not up to the mark. In the context of customer satisfaction, which of the following traps does the scenario illustrate?
A. Overpromising
B. Underpromising
C. Market segmentation
D. Market cannibalization

Answer 1

Answer:

In the context of customer satisfaction, Reginald Inc. used;

A. Overpromising

Explanation:

Customer satisfaction is a measure of how much the customer's needs are met when they use a product or service. This measure was formulated to try and come up with different levels of customer fulfillment. Research has often shown that if a company has high levels of customer satisfaction they are likely to foster customer loyalty and thus gain a bigger market share in the long run. A bigger market share usually translates to more sales and wider profit margins. Since the aim of business is to make profits, companies tend to ensure that their perceived customer satisfaction is at a high level. They might utilize different marketing strategies, namely;

Overpromising

Over promising as the name suggests is offering promises that one cannot meet. It involves the use of marketing strategies that offer product quality that are non-existence to improve the perceptions of the customers. They therefor attract more customers. However, the customers later realize that the product features and qualities promised were false. A typical example is Reginald Inc. that advertised the launch of its new solar powered car, Brandon. However, after the delivery of the cars, most customers complained that some of the features advertised did not work properly. Some of the features were; power windows did not work properly in solar power and that the brakes were not up to the mark.