A Major Strategy for Competitive Success Is Satisfying Customer Needs

question 29

True/False

A major strategy for competitive success is satisfying customer needs at lower costs than other firms are able to achieve-thus allowing the use of cost savings to develop new lines of business or service for better satisfying customers, as well as for reducing costs for the customer for products or services.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

Rational

Related to decision-making, denotes behavior in accordance with logic or reason, where choices are made to maximize self-interest or outcome.

Inelastic

Characterizing a situation where a change in price leads to a relatively small change in the quantity demanded or supplied.

Share of Income

The portion of total income (either personal or national) that is received by an individual, household, or socioeconomic group.