Happy Hospital

Big Drive auto

1. Provide pricing strategy recommendations

2. Recommendation for non-price barriers to entry

3. Ideas for product differentiation for the organization

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Introduction

Big Drive Auto is a company that has expanded to several states and manufactures’ cars and trucks. The company not only sells vehicles but it also offers a variety of services such as, replacement of tires, motor oil services, and coolant services. Big Drive Auto encompasses the car itself and all it’s needs. Having in mind that this type of company is not the only one of its kind in the market Big Drive Auto is part of the monopolistic competition market model. Owing to the fact, in which there are many firms in this same branch is important to provide new and up-to-date pricing strategy recommendations as well as to point out the non-price barriers to entry and to develop new ideas for product differentiation and make the company memorable on the eyes of the consumers.

Customer Loyalty

A non-price barrier to entry the market is customer loyalty. Big Drive Auto can face the consumers’ loyalty issue in which consumers will prefer the other product not thinking about the product itself but because past experiences with the brand and family history using the brand. An example of this is when a person goes to a store and has the same product but have different brands, the person will chose the one that recognizes rather then the unknown brand. Therefore, when Big Drive Auto expands to new areas they will be face with customer loyalty and the way to introduce the product could be by making the product more attractive the other well known brand.