One Aspect of Using a Cost Leadership Strategy Is That

question 78

Multiple Choice

One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.Experience effects are achieved by

• A) spreading out a given expense or investment over a greater volume.
• B) hiring more experienced personnel.
• C) repeating a process until a task becomes easier.
• D) competing in an industry for a long time.

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Definitions:

Modify Existing Products

The process of making alterations or improvements to current products to meet new requirements or take advantage of new market opportunities.

New-to-the-world Products

Innovations that create an entirely new market by being the first of their kind.

Late Majority

The last group of buyers to enter a new product market; when they do, the product has achieved its full market potential.

Early Adopters

The second group of consumers in the diffusion of innovation model, after innovators, to use a product or service innovation; generally don’t like to take as much risk as innovators but instead wait and purchase the product after careful review.