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The whole point of a brand is that people make buying decisions based on irrational ephemera as opposed to utility. Once you establish a luxury brand then charg
by carnagii 8y ago
The whole point of a brand is that people make buying decisions based on irrational ephemera as opposed to utility. Once you establish a luxury brand then charging ridiculous prices for the same utility only reinforces brand perception because consumers have no ability or desire to judge things based on utility and so they equate paying more with a better product, or at least with personal prestige.
BMW will do just fine.
- linuxftw 8y agoThe point I'm trying to make is, revenue dealers (and BMW) receive from service and maintenance will decline. Margins on cars will have to increase to make up the difference. BMW might not be able to differentiate on a performance-basis in an all-electric segment. People want fast cars that look nice. BMW fits that bill today. In an all-electric segment, why pay a premium for the BMW name if there's no appreciable performance difference? Surely, some will, but will it be enough to sustain the brand? I don't think so.