A Competitive Strategy to Be the Low-Cost Provider in an Industry

question 85

Multiple Choice

A competitive strategy to be the low-cost provider in an industry works well when

• A)price competition among rival sellers is especially sluggish.
• B)there are numerous ways to achieve product differentiation that have no value to buyers.
• C)buyers incur high costs in switching their purchases from one seller/brand to another.
• D)industry newcomers use introductory low prices to attract buyers and build a customer base.
• E)industry newcomers use high introductory prices to let buyers know they have a superior product to build a customer base.

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Definitions:

Contingency Theory

A theoretical framework suggesting that the effectiveness of a leadership style is contingent on the situation or context.

Leadership Style

The distinctive approach or method adopted by a leader to guide, motivate, and manage followers or team members.

Situation

Refers to a set of circumstances or a scenario within which individuals find themselves, affecting their decisions and actions.

Participative Leader

A person in charge who shares decision making with group members.