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:

Expansionary Influence

Activities or policies designed to stimulate economic growth or expansion, often through increased spending or tax cuts.

Discretionary Influence

The ability to make decisions or take actions based on personal judgment rather than fixed rules.

Public Borrowing

The process by which a government finances its expenditure by raising loans through the issuance of securities or borrowing from financial institutions.

Federal Deficit

The fiscal year difference when the U.S. Government's expenditures exceed its revenues, necessitating borrowing to cover the gap.