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:

All You Can Eat

A service model where diners pay a set fee to consume as much food as they desire from a specific selection.

Consumption

The use of goods and services by households.

Additional Item

A supplementary product or service added to an existing order or purchase.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.