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

question 1

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.
• 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:

Melanin

A pigment found in most organisms, responsible for the color of skin, hair, and eyes, providing protection against UV radiation.

Decreased Blood Flow

Decreased blood flow refers to reduced circulation of blood in the body, which can lead to various health issues due to insufficient oxygen and nutrient supply to tissues.

Pale

Having a lighter shade of color or lacking in intensity; can refer to physical appearance or luminosity.

Melanocytes

Cells located in the lower layer of the skin's epidermis and in the hair follicles, responsible for producing the pigment melanin, which colors the skin, hair, and eyes.