A manufacturer wants to achieve rapid market penetration through a low-price policy. However, its dealers prefer to work with high margins and pursue short-run profitability. The major reason for this conflict is ________.

Question

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The conflict arises due to goal incompatibility between the manufacturer and its dealers. The manufacturer wants to achieve rapid market penetration through low prices, but the dealers' preference for high margins and short-run profitability is not aligned with the manufacturer's goal.

A Manufacturer Wants to Achieve Rapid Market Penetration Through a Low-Price