The Noble GM Car Dealership Has Been in Your Family

The Noble GM car dealership has been in your family for three generations. Your biggest competitor is the massive Royal Honda/Toyota/Kia/Mazda dealership across town. For each of the past eight weeks, you've noticed that the team at Royal has been advertising a couple of brand-new vehicles for about half of their retail sticker prices, a tactic that's attracting all of your potential customers to Royal. What can you do about it?

A) Match their prices, even though you can't afford to lose this much money on even a few vehicles each week
B) Report Royal to the state since their loss-leader pricing tactic may be violating the state's unfair trade laws
C) Counter their pricing tactic by competing on other elements in the marketing mix, such as customer service
D) Report Royal to the state since their price discrimination tactic may be violating federal fair trade laws