entiate the Hummer based on superior performance within the luxury class. One the one hand, the Hummer's $50,000 price tag puts it in direct competition with brands such as Mercedes, Porsche and Lexus. This market segment is dominated by buyers who are status-conscious and have a taste for comfort and luxury – not off-road ruggedness.
On the other hand, a lower price tag places the Hummer in competition with itself, as the H2 could entice buyers who might otherwise purchase the $100,000 H1, resulting in cannibalism.
Hummer also faces competition – and animosity – from Chrysler, who makes and markets the Jeep line. Jeep was the original military vehicle long before Hummer entered the scene. Chrysler recently attempted, unsuccessfully, to halt Hummer's use of Jeep's distinctive grill design. Chrysler is taking aim at Hummer's appeal to off
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