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

question 22

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.
-McCall Automotive sells a large number of well-established minivans,such as the Dodge Caravan and Honda Odyssey.Now,the dealership has a new vehicle that it must position-a hybrid minivan.What will be the best strategy for positioning the new hybrid minivan?

• A) hiring a new sales team to sell the hybrid minivan
• B) focusing on key features of the hybrid minivan
• C) highlighting the service provided by the dealership
• D) creating a need and desire for a hybrid minivan
• E) sustaining the dealership's current minivan market share

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Definitions:

Full Goodwill Method

An accounting approach that recognizes the full fair value of goodwill in the acquisition of a subsidiary, not just the portion attributable to the parent company.

Non-controlling Interest

A minority stake in a company, represented by shares that do not grant the shareholder the majority of voting power.

Acquired Goodwill

The excess value paid for a company over the fair value of its identifiable net assets during an acquisition.

Non-controlling Interest

An equity interest in a subsidiary not held by the parent company, reflecting the share of the subsidiary's equity owned by external investors.