Reverse auctions are less effective when the value provided to a customer comes from a complete marketing mix, not just a low price.

Question

Quizplus · Accepted Answer

Reverse auctions focus solely on obtaining the lowest price, rather than considering other aspects of the marketing mix such as quality, service, or branding. Therefore, when value is provided to customers through a complete marketing mix, reverse auctions may not be as effective.

Reverse Auctions Are Less Effective When the Value Provided to a Customer