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

question 52

Multiple Choice

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?

Definitions:

Total Sales

The aggregate revenue a company generates from the sale of goods or services before any deductions are made.

Compensation Paid

The total cash and non-cash payments that an individual or employee receives in exchange for their services or work performed.

Accounts Receivable Turnover

A ratio that measures how many times a business can turn its accounts receivable into cash during a period.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.