Compared to a Differentiator, the Company That Follows a Low-Cost

question 14

Multiple Choice

Compared to a differentiator, the company that follows a low-cost strategy:

• A) distinguishes its products from those of rivals by offering something that they find hard to match.
• B) absorbs cost increases by powerful suppliers while keeping to their lower pricing.
• C) allows the company to charge a premium price for its good or service, should it choose to do so.
• D) uses perceived superior value to generate growth in demand among customers.
• E) creates entry barriers for rivals with greater brand loyalty to the specific products offered.

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Definitions:

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained, often involving hypotheses that are tested through observation, experimentation, or other methods of scientific inquiry.

Fear Reactions

Emotional and physiological responses triggered by perceived threats or dangers.

Measurement

The process of quantifying objects, events, or phenomena, typically using tools or instruments to determine dimensions, quantities, or capacities.

Measurement

The process of obtaining a numerical value that represents the size, quantity, or degree of an attribute or phenomenon.