A Company Pursuing a Low-Cost Strategy

question 61

Multiple Choice

A company pursuing a low-cost strategy:

• A) Improves non-price factors such as design and customer service
• B) Produces a basic offering to reduce cost structures
• C) Keeps advertising expenses at a maximum
• D) Relies on patent protections to keep costs low
• E) Customizes marketing mix to different market segments

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Definitions:

Oligopoly

The market structure that exists when there are very few businesses selling a product.

Economic Depression

A severe and prolonged downturn in economic activity characterized by significant decline in GDP, high unemployment, and deflation.