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Do you agree with Toyota decision to limit the number of Scion vehicles available for sale?
Wiki User
∙ 14y ago
Yes. I agreeToyota to limit the number of Scion for sale. The firstreason, if Toyota continues produce without limit, it may suffer the diseconomies of scales. This happen when Toyota pursuit the larger market demand and keep on increasing their output to fulfill them, at some point the percentage of input increase are similar to the percentage the output increase, causing the unit cost to rise. For example, when Toyota produce more to fulfill the market need, it may need more labor and additional plant to produce car.
Secondly, limit the sale is a marketing strategy to attract the younger buyer, especially the Gen Yers. Limit number of vehicles give an implication that not everyone have the same car and it's not easy to be obtain, make Scion become ultra exclusive and this strategy work very well to attract youngest buyer.
Lastly, limit in sales of Scion might build a long-term brand loyalty from the consumer. When introducing new model in the future, it may easily attract existing and new customer. For example, when new Toyota Scion model introduce to the market, it is easier to sell to the existing Scion customer.
Wiki User
∙ 14y ago
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