Consider the Following to Answer the Question(s) Below

question 27

Essay

Consider the following to answer the question(s) below:
A landowner is considering a community development project. Even though he realizes that the current market for housing is not very favourable, he believes that there will be an influx of retirees into the area within the next five years. He is trying to decide between two alternatives: (1) building detached homes in a planned retirement community or (2) building a smaller townhouse/condominium complex. Mortgage interest rates will affect his outcomes and the applicable payoff (in $ millions) table is shown below.
-Using the maximax approach, which action should the landowner choose?

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Definitions:

Introductory Approach

The most common but least powerful approach; it does little to capture the prospect’s attention.

Complimentary Approach

An approach that opens with a compliment that is sincere and therefore effective.

Straight Rebuy Situations

Situations in business purchasing where the buyer reorders an existing product or service without modifications, often through automated systems, reflecting a routine purchasing decision.

High-Tech Business Products

Products that incorporate the latest technology or are based on high-level scientific research, aimed at the business market.