Nick Thomas is the CEO of Auto Concepts, a new division of the one of the larges

Question

Nick Thomas is the CEO of Auto Concepts, a new division of the one of the largest U.S. automobile manufacturers with multiple divisions representing several auto and truck brands.

This company has been slowly losing market share to other competitors. Auto Concepts was created to develop totally new models that are more in tune with today’s changing automobile market. A primary consideration in this development effort is the U.S. Department of Energy’s Clean Cities Initiative that advocates the use of alternative automobile furls such as propane, natural gas, biodiesel, electric, hybrid, and/or ethanol. At the same time, management believes that the Internet of Things (IoT) with its capabilities of safe mobile connections, self- or assisted- driving, infotainment, on-board diagnostics, and more will be a prominent part of future vehicles.

Nick Thomas knows he must come up with some innovations in automobile design and engineering, but he is not certain in which direction he should guide this division. Nick realizes that he needs to find out what consumers’ attitudes are toward fuel prices and global warming. This knowledge will help him determine a direction for the company in terms of automobile design. Nick also needs more data on consumer preferences. Will they want to stay with today’s standard compacts or hybrids, or might they be interested in radically, different models that promise much higher fuel economies?

1. In the development of new automobile models, which of the following should Nick be primarily concerned with and why?

a. Engineering and production facility

b. The brand image of his division’s parent U.S. automobile manufacturer

c. Technological innovation

d. Consumer preferences

Explanation / Answer

Answer:- In the development of new automobile models, Nick should be primarily concerned with

d. Consumer preferences.

Reason: In the development of new automobile models, Nick should be primarily concerned with Consumer preferences because the new design will be successful if it have the consumerspreferences. If Nick misses to add the consumer preferences in the new design, then the new automobile model will not be prefereed by the consumers, which will result in failure of the project and the company will not be able to generate the revenues. Thsu suceess of the new innovative design is primarily depends upon the consumer preferences/customer requirements with respect to the price of the product/services.

So primary objective of the new innovative design is to have the design which meets the consumer preferences. So understanding the consumer preferences is the primary factor to be consider before starting the design work for the new automobile model.

The new automobile design will be successful and accepted by the cosnumer if and only if ithe new design meets the consumer preferences/ customer essential requirements.

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