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Ferrari Targets Successful Consumers

Kevin Crowder walked onto the famed Monza, Italy, race track, climbed into a Ferrari F2000 racer, and circled the course with a Grand Prix champion. Mr. Crowder, a Texas businessman who earned millions when he sold a software company he cofounded, isn’t himself a professional driver. He’s a customer of one of Ferrari’s marketing programs: the F-1 Clienti program, under which Ferrari resurrects old race cars that would otherwise be headed for the scrap heap. Instead, it sells them for $1 million or more, along with the chance to drive them with a professional pit crew’s help.

Ferrari has long built its business around exclusivity. It limits production to around 4,500 to 5,000 cars a year at around $180,000 and up. Some customers pay additional money to race these street cars against fellow owners at company-sponsored Ferrari Challenge events. The F-1 Clienti program adds a super-premium service by giving people a chance to drive the same Ferraris used in Formula One, a series of auto races that are especially popular among Europeans.

The program gives customers “an experience they can’t get elsewhere,” says Ferrari CEO Dieter Knechtel. Mr. Knechtel says that the “brand experience is very much related to the ownership experience: It’s about driving and the experience of the car while doing it in a community of like- minded people. This is why, we organize track days and tours in Italy with road tours in different countries, we can organize almost any experience with the car—what we offer to our customers is often a ‘money can’t buy’ experience.”

Critical Thinking Questions

For Mr. Crowder, the Ferrari is a specialty good. What kind of product would it be for you? Why?

Do you think that Ferrari has done a good job of building brand loyalty? Could Ford do the same thing?

Sample Solution

umber of organ donation across the UK. The proposed legislation will make everyone donor, unless a person expressly register the objection. The bill claimed that by enacting the new legislation, it is possible to save 500 lives each year. Though, no evidence was submitted in support of the claim. There are contrasting views in relation to ‘opt-out’ laws among the medical professionals. Some professionals believe that introducing an ‘opt-out’ will increase the number of organ donation and thus, will save many lives. However, there are contradictory views as well. According to Nuffield Council on Bioethics (NCB) enacting the ‘opt-out’ law will undermine the public trust and this will make people reluctant to donate. Different system for organ donation around the world There are wide ranges of systems available for organ donation around the world. In Austria, a hard opt-out system is in place. So, doctors can take out any organ which they consider appropriate after a person dies unless that person registered to opt-out. If the deceased failed to register for opt-out during life, this rule applies regardless of the relatives’ knowledge that the deceased would object to donate organ. In Belgium, a soft opt-out system is currently in place. Doctors can take out any organ which they consider appropriate after a person dies unless that person registered to opt-out or the relatives inform the doctors that the doctors should not remove doctors. However, it is the responsibility of the relatives to inform the doctors. There is a different soft opt-out system is in place in Spain. According to this system, doctors can take out any organ which they consider appropriate after a person dies unless that person registered to opt-out. However, the doctors take the relatives’ opinion with regard to organ donation at the time of death. In the UK, the current system for organ donation is called the ‘soft’ opt-in system. According to this system, doctors can take out any organ which they consider appropriate after a person dies if that person registered to opt-in during his/her life. Therefore, it is for the individual to register for opt-in if that person wants to donate his/her organ. However, doctors may not remove organ if they face challenge from the relatives of deceased even if the deceased had registered to opt-in. In a hard opt-in system, the doctors can remove organ from the deceased body if the deceased registered to opt-in during life. Here, the objection from the relatives will not be taken into account. Organ donation: UK perspective
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