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Seoyeon

on Dec 25, 2019

Global

Question about

WyCar 150

I don't agree with the statement that willingness to pay is lower than the current price of Wycar 150. Given that there is 12% government refund, the effective price of WyCar 150 would be 30,800. This is lower than the WTP of young people or those in large cities. I need more explanation on this.

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Top answer

Luca

Coach

edited on Dec 25, 2019

BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello Seoyeon,

I agree with you, the solution is a bit confusing. I would say that our model is expensive for 2 reasons:

Only in large cities WTP is above 30k€ for a 150km model
Only people below 30 want to spend more than 30k€

These 2 conditions restrict our target only to people that live in big cities and are under 30, which is a segment that could be not sufficient for our company.
I want to add that it would be amazing to write down on paper a matrix to explain this reasoning to the interviewer.

Feel free to contact me if you want to discuss further.
Luca