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.