Assume a used imported car dealership (Used Imported Cars Incorporated) does not have a large sales volume and lost over 100K last year. The manager has a low-cost and high-cost strategy to turn the losses around.
Low-cost strategy: change the name to Quality Used Imported Cars Incorporated to signal to customers that the company sells high end cars.
High-Cost strategy: issue a 60 day warranty on every used car sold and perform auto inspection on all cars on the lot.
Which strategy would have the greatest impact on sales volume? Explain.
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