Posted by & filed under Part 1 Business in a Global Environment, Part 4: Marketing Management.

House passes bill to add $2 billion for Cash for Clunkers program.

Source: CNNMoney.com

Date: 7/31/2009

Keys: Marketing, pricing, consumer behavior, economy, government

Link:  http://money.cnn.com/2009/07/31/autos/cash_for_clunkers_update/index.htm?postversion=2009073114

Questions for discussion:

  • Explain why you think this program has been overwhelmingly successful in stimulating demand for new car purchases?
  • What does price sensitivity suggest to you about why auto sales might have been poor until now?
  • Which other categories of consumer products do you think would also respond as dramatically to similar price reductions?
  • Do you think governments should help certain businesses – like autos, and not others? Explain your thinking.

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