After major storms, many ethical home repair and building supply businesses continue to charge pre-storm prices to their customers, even though they know they can charge more due to the huge increase in demand for their services and products. These firms probably recognize that
A)they can make more money from government contracts than from sales to customers.
B)a transactional orientation is the key to long-term profitability.
C)none of their competitors would be raising prices.
D)lifetime profitability of relationships matters more than profits from a particular transaction.
E)if they raised prices they would be in violation of Commerce Department regulations.

Question

Quizplus · Accepted Answer

Ethical home repair and building supply businesses recognize that maintaining long-term relationships with their customers is more important than making a quick profit from a particular transaction, and therefore choose not to raise prices after major storms. They understand that by charging fair prices, they can build trust and loyalty with their customers, which will result in repeat business and positive word-of-mouth advertising. This approach is more sustainable and profitable in the long run than charging inflated prices for short-term gain.

After Major Storms, Many Ethical Home Repair and Building Supply