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:

Designing

The process of creating a plan or convention for the construction of an object or a system, operationalizing visions into functional outputs.

Pitfalls

Hidden or not immediately obvious dangers or disadvantages, typically preventing success or effectiveness.

Pay Grades

A system of categorizing and paying employees based on their job title, experience, and responsibilities within an organization.

Pay Ranges

A structured scale that outlines the minimum, midpoint, and maximum salary for each position within an organization, facilitating fair and equitable pay.