Fine Corp.,a consumer electronics manufacturer,targets a market with many low-margin customers.Which of the following types of associations would be most profitable for the firm to develop with these customers?
A) full partnerships
B) basic relationships
C) joint ventures
D) strategic alliances
E) business partnering

Question

Quizplus · Accepted Answer

Basic relationships would be the most profitable type of association for Fine Corp. These customers have low margins, which means that they do not have a lot of money to spare. Therefore, developing a basic relationship with these customers would be the most cost-effective approach for the company. A basic relationship involves providing good customer service, offering discounts or promotions, and maintaining a consistent level of quality. This way the company can retain customers and build brand loyalty without incurring significant expenses.

Fine Corp,A Consumer Electronics Manufacturer,targets a Market with Many Low-Margin Customers