Final answer:
The statement is false because sustaining a business requires more than just competitive pricing; strong customer relations are essential for long-term success, customer loyalty, and maintaining a competitive position in the market.
Step-by-step explanation:
The notion that a business solely focused on offering the lowest prices is exempt from the need for effective customer relations is erroneous. While competitive pricing is a significant factor, customer relations remain pivotal for sustained success. Merely providing the lowest prices does not ensure customer loyalty or safeguard against market share erosion if customer service is lacking.
Positive customer relations foster satisfaction, encouraging repeat business, word-of-mouth referrals, and a robust brand reputation—essential for long-term prosperity. Moreover, competition extends beyond pricing to encompass product and service quality. Businesses must strike a balance, coupling competitive prices with robust customer relations to thrive in a competitive landscape. Prioritizing customer satisfaction alongside pricing strategies is a holistic approach crucial for enduring success in the marketplace.