Renault Has Found a Way to Generate High Profits on Low-Priced

question 111

Multiple Choice

Renault has found a way to generate high profits on low-priced cards by using simple designs that incorporate components from older car designs and a no-discount retail policy. They are using a(n) ______________ strategy.

• A)differentiation
• B)overall cost leadership
• C)focus
• D)broad differentiation

---

Definitions:

External Failure Cost

Costs incurred when a product or service fails to meet quality standards after being delivered to the customer, including returns, repairs, and warranty claims.

Quality Cost Report

A document that details the costs associated with preventing, detecting, and correcting defective work in a company.

Warranty Period

The specific time frame during which a manufacturer or seller commits to repair or replace defective products.

Prevention Cost

Expenses incurred to avoid or minimize the number of defects in products, part of quality costs including training, quality planning, and product design.