Refco is company that manufactures parts of a car engine for two major car manufacturers.It decides to shut down an assembly line that produces parts that are specially tailored for one of the car manufacturers.The other manufacturer then increases its order for parts made by Refco.In this example,Refco was practicing a _____.
A)loss leader strategy
B)price gouging strategy
C)commitment strategy
D)cost plus pricing strategy

Question

Quizplus · Accepted Answer

Refco was practicing a commitment strategy by reducing its offerings to one car manufacturer and allocating resources to the other manufacturer who increased its order. This strategy involves deepening ties with a specific customer or market segment and demonstrating a willingness to prioritize their needs over other customers. This can lead to increased loyalty and repeat business.

Refco Is Company That Manufactures Parts of a Car Engine