Which of the Following Is an Example of a Best-Cost

question 18

Multiple Choice

Which of the following is an example of a best-cost provider strategy?

• A) Manufacturers like Ferrari,Aston Martin,and Lamborghini compete in the tiny super car category with prices starting at $150,000 and running as high as $600,000.
• B) Toyota's Lexus brand is considered a luxury car.Some of Lexus' models like the ES model,however,are in the midrange of prices for cars.
• C) Global furniture retailer Ikea provides customers with "affordable solutions for better living" by offering home furnishings that combine good design,function,and quality with low prices.
• D) Big Dog builds motorcycles that target only the very high end of the heavyweight market-the high-end premium cruiser market-with names such as Pitbull,Wolf,Mastiff,and Bulldog.
• E) Walmart's every day low prices (EDLP) strategy hinges upon Walmart's ability to obtain consumer goods at the cheapest possible price and pass these savings on to consumers.

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Definitions:

Herring

A type of fish found mainly in the North Atlantic, known for its significance in various cuisines globally.

Comparative Advantage

The talent of either an individual, corporation, or country to generate a good or provide a service at a reduced opportunity cost compared to that of the competition.

Cell Phones

Portable electronic devices used for communication, including voice calls, text messaging, and internet access.

Herring

A type of small, silver-colored fish, often found in the temperate waters of the Pacific and Atlantic Oceans, and commonly used in various culinary traditions.