What is a potential pitfall for Phil of competing on price instead of developing a partnering relationship with car buyers?
A)A customer who buys only because the car is cheap will switch to another dealer with lower prices for the next purchase.
B)A customer who wants a car that Phil doesn't have in stock will wait for Phil to order it if the price is correct.
C)Phil will have to spend less time selling to a customer who buys on price alone.
D)Phil may not be able to move older models if the prices on those cars have already been discounted.
E)Phil will have to use a transactional sales technique to sell to customers based on low price.

Question

Quizplus · Accepted Answer

Competing solely on price creates a transactional relationship with customers, where they are only interested in getting the cheapest deal. This means that once another dealer offers a lower price, the customer is likely to switch, and loyalty is not established. This makes it difficult for Phil to retain customers and build a long-term business relationship with them.

What Is a Potential Pitfall for Phil of Competing on Price