Real Choices at Electrolux
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January 2, 2016Real Choices at ElectroluxReal Choices at ElectroluxWhat is the decision facing Electrolux?Electrolux is faced with consumer perception on high price. The reason I say that is because their vacuum costs seven hundred dollars, and consumers don’t want to pay that much for a vacuum. Especially since Dyson is known to be of high quality, and dominates the vacuum cleaner industry. So essentially Electrolux needs to decide how they will make customers perceive their UltraCaptic vacuum is a price worth paying for.What factors are important in understanding this decision situation?Since Electrolux wants consumers to see their vacuum as a premium product, they will need to consider how they will promote their product, and have a product demonstration. A demonstration will show the potential customers how strong the sucking power of the vacuum is, and not to mention how quiet it is. Electrolux needs to show the potential customers that a vacuum does not have to be loud in order to perform well. Electrolux also needs to promote their product more in order to make consumers more interested in buying their product. Electrolux would also need to focus on the fact that this product makes vacuuming easier on your health because when you dump out the vacuum cleaner there will be no dust or germs that will go in the air, because it condenses itself down into pellets.
What are the alternatives?Electrolux can lower the price to equal their competitor’s price, to make consumers think twice before buying the dyson, because it offers more features, and it is the same price. Electrolux could also offer a short term promotion, and make their vacuum cheaper than the competition for a short time. By offering a price decline, it makes consumers more willing to buy the product because it is a great deal. Electrolux could also change the name of their product so the consumer know that it is made by Eureka. By doing that then people who are already brand loyal to Eureka, will be likely to buy that vacuum.