Question

Horton Corporation's customers differ greatly with respect to the number of required sales contacts, account payment patterns, and design/engineering change orders. Which of the following choices likely denotes an ideal customer from Horton's perspective?

Options:
Option 1: A customer who requires frequent sales contacts and has unpredictable payment patterns.
Option 2: A customer with consistent account payment patterns and minimal design/engineering change orders.
Option 3: A customer with infrequent sales contacts and unpredictable account payment patterns.
Option 4: A customer with frequent design/engineering change orders and minimal sales contacts.

Answer 1

The ideal customer for Horton Corporation would have consistent payment patterns and minimal change orders, aligning with Option 2, as it suggests reliability and streamlined operations.

Step-by-step explanation:

An ideal customer from Horton Corporation's perspective would likely be one that presents the least challenges and the most predictability in their business dealings. Given the options, Option 2: A customer with consistent account payment patterns and minimal design/engineering change orders is most likely to be considered ideal. This is because consistent payment patterns suggest reliability in cash flow, which is critical for business operations and financial planning.

Additionally, minimal design/engineering change orders would imply that the costs associated with servicing the customer would be lower and the process more streamlined, improving efficiency and profitability for Horton Corporation.The ideal customer for Horton Corporation would have consistent payment patterns and minimal change orders, aligning with Option 2, as it suggests reliability and streamlined operations.