In recent years, the "fax attack" model of car shopping has become popular. In a "fax attack," a customer sends a fax to every car dealership within a certain radius listing the make and features of the car they would like, along with the price they are willing to pay, and asks dealerships that will match that price to contact the customer. In essence, the customers set both the features and the price for the car. McCall Automotive has experienced a sharp increase in the number of fax attacks, and Phil, the sales manager, is seeking methods for addressing the situation. Phil is also concerned about the dealership's positioning strategies and market share.
-Phil believes that the dealership should lower car prices to capture a higher share of the market.Competing on price will most likely work with which of the following car buyers?
A) a high-involvement buyer who values quality and durability
B) a high-involvement buyer who is willing to research features and performance extensively
C) a low-involvement buyer who has a tight budget
D) a low-involvement buyer who is unwilling to purchase online
E) a low-involvement buyer who asks an employee to make the buying decision

Question

Quizplus · Accepted Answer

Lowering car prices would most likely work with low-involvement buyers who have a tight budget, as they are more price-sensitive and may not be as concerned with other factors like quality and durability or extensive research on features and performance. High-involvement buyers may still prioritize these factors over price, even if they are conducting a fax attack. Option A and B are high-involvement buyers who would weigh quality and durability or research extensively over price. Option D and E do not provide sufficient information to determine their degree of involvement or their priorities in the car buying process.

In Recent Years, the "Fax Attack" Model of Car Shopping