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Last year, a property company that sold houses only sold houses and suffered a loss of Rp. 20 billion. As a consequence, the manager proposed

Last year, a property company that sold houses only sold houses and suffered a loss of Rp. 20 billion. As a consequence, the manager proposed two strategies to increase his sales volume. The low-cost strategy is to change the name of the sales agent to a Qualified Property Sales Agent to signal to consumers that the company is selling good quality homes. The second strategy is the high-cost strategy by conducting a strict inspection of the house before it is offered and providing a guarantee of 2 months for each house sold.

Which of these two strategies do you think can increase home sales? Explain.

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