In recent years, the "fax attack" model of car shopping has become popular. In a "fax attack," a customer sends a fax to every car dealership within a certain radius listing the make and features of the car they would like, along with the price they are willing to pay, and asks dealerships that will match that price to contact the customer. In essence, the customers set both the features and the price for the car. McCall Automotive has experienced a sharp increase in the number of fax attacks, and Phil, the sales manager, is seeking methods for addressing the situation. Phil is also concerned about the dealership's positioning strategies and market share.
-Phil believes that the dealership should lower car prices to capture a higher share of the market. Competing on price will most likely work with which of the following car buyers?
A)a high-involvement buyer who values quality and durability
B)a high-involvement buyer who is willing to research features and performance extensively
C)a low-involvement buyer who ranks budget as a primary concern
D)a low-involvement buyer who is unwilling to purchase online
E)a low-involvement buyer who asks an employee to make the buying decision

Question

Quizplus · Accepted Answer

Lowering prices will be most effective with low-involvement buyers who are primarily concerned with their budget. These buyers are less likely to prioritize quality and performance and are more likely to go with the dealership offering the lowest price. High-involvement buyers may still prioritize factors such as quality and research, even if the price is lower at a different dealership.

In Recent Years, the "Fax Attack" Model of Car Shopping