Market context analysis:
1. Ad of a product priced high in its category: Toyota Camry Hybrid
2. Category: Family/mid-sized cars.
3. Prices:
? 2007 Toyota Camry Hybrid: $26,200
? Toyota Camry (non-hybrid): $18,270 - $27,820 ? avg: $23,045
4. Main competition in US (according to Wikipedia.com, prices according to Edmunds.com):
? Hyundai Sonata: $17,195 - $18,445 ? avg: $17,820
? Mazda 6: $18,930 - $27,800 ? avg: $23,365
? Saturn Aura: $19,945 - $23,945 ? avg: $21,945
? Nissan Altima: $17,950 - $28,400 ? avg: $23,175
? Ford Fusion: $17,295 - $22,730 ? avg: $20,012.5
? Chevy Malibu: $17,155 - $23,410 ? avg: $20,282.5
? Mitsubishi Galant: $19,899 - $26,999 ? avg: $23,449
? Total average for the category: $21,636
Price sensitivity factors analysis
1. Unique value effect
There main value emphasized throughout this ad is the fact that it's a hybrid car, with all advantages thereof: cleaner exhaust, contributing to personal (though not stated clearly) and national economy. Although Toyota is not the only hybrid car manufactured (there are others by Honda and Ford), this ad doesn't mention it and presents it as a unique value inherent to Toyota Camry. The fact that a hybrid car is not a widespread phenomenon boosts the influence of this factor. We rank its influence as high (decreasing PS).
2. Substitute awareness effect
It's difficult to compare car prices and benefits just when reading this add, though mo ...