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:

Yield Management

A pricing strategy used in industries with fixed capacities to maximize revenue by adjusting prices based on demand.

Operations Management

is the area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.

Demand Curve

A graph showing the relationship between the price of a good and the amount of the good that consumers are willing to purchase at that price.