1. As consumer wealth has increased, so motorcycles have in large part moved from being a mode of transport into being a form of recreation. In addition to this, most users who do need their motorbikes for transport now also demand high performance, sophistication and sporty looks. Manufacturers have responded to this trend by developing ever more refined, powerful, and expensive products. They have done this very well. A Midland’s motorcycle dealer reasoned, however, that there were also customers who did want a basic, no frills, cheap machine. They signed up the UK distributorship for MZ, and started importing inexpensive East European motorcycles which sell at below 50 percent of the price of an equivalent size Japanese model. They now have a market share of 24 per cent of the commuter bike sector of the market. This technically inferior but inexpensive product clearly represents ‘value’ for one segment of customers.
A Midland's Motorcycle Dealer, Management of Technological Innovation, KV Patri