A Competitive Strategy Predicated on Low-Cost Leadership Tends to Work

question 31

Multiple Choice

A competitive strategy predicated on low-cost leadership tends to work best when

• A) there are widely varying needs and preferences among the various buyers of the product or service.
• B) there are many market segments and market niches, such that it is feasible for a low-cost leader to dominate the niche where buyers want a budget-priced product.
• C) price competition is especially vigorous and the offerings of rival firms are essentially identical, standardized, commodity-like products.
• D) buyers prefer that the products/services of competing sellers have widely varying attributes and prices.
• E) buyers have high switching costs and there is considerable diversity in how buyers use the product.

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Definitions:

Melatonin

A hormone secreted by the pineal gland that plays a major role in regulating sleep-wake cycles and circadian rhythms.

Insomnia

The inability to get to sleep, stay asleep, or get a good quality of sleep.

Total Amount

Refers to the complete or whole quantity or sum of all parts or elements within a set or group.

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, reduced sensory activity, and inhibited voluntary muscle activity.