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After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane prices to their customers, even though they could charge much more due to the huge increase in demand. These firms probably recognize that:_______.
a) they can make more money from government contracts than from sales to customers.
b) a transactional orientation is the key to long-term profitability.
c) none of their competitors woul be raising prices.
d) lifetime profitability of relationships matters more than profits from a particular transaction.

Respuesta :

Answer:

D. lifetime profitability of relationships matters more than profits from a particular transaction

Explanation:

After the hurricane, ethical home repairs will most likely receive a lot more demand than the usual. Meaning that if they decided to increase the price, they will most likely obtained a lot of profit due to the disaster.

But, If they decided to do that, many people will feel that they are taken advantage of and the customers' perception toward the company will be heavily damaged.

In the long run, continue to charge pre-hurricane prices might be more profitable for the company.

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