Focusing Carries Several Risks, One of Which Is the

question 78

Multiple Choice

Focusing carries several risks, one of which is the

• A)chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace.
• B)chance that competitors will find effective ways to match the focused firm's capabilities in serving the target market.
• C)potential for the segment to be highly vulnerable to economic cycles.
• D)potential for the segment to become too specialized for other multisegmented rivals to enter.
• E)inability of a company to compete industry-wide.

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Definitions:

Fundamental Attribution Error

The tendency to overestimate personality or dispositional factors while underestimating situational factors when explaining others' behaviors.

Attributional Process

The cognitive process by which individuals infer the causes of their own and others' behavior.

Cognition Versus Affect

The distinction or interaction between cognitive processes (thought, knowledge) and affective responses (emotions, feelings).

Dunning-Kruger Effect

A cognitive bias where individuals with low ability at a task overestimate their ability.