The Objective of a Best-Cost Provider Strategy Is to

question 18

Multiple Choice

The objective of a best-cost provider strategy is to

• A) deliver superior value to buyers by satisfying their expectations on key quality/performance/features/service attributes and beating their expectations on price.
• B) offer buyers the industry's best-performing product at the best cost and best (lowest)price in the industry.
• C) attract buyers on the basis of having the industry's overall best-performing product at a price that is slightly below the industry-average price.
• D) outcompete rivals using low-cost provider strategies.
• E) translate its best-cost status into achieving the highest profit margins of any firm in the industry.

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Definitions:

Technological Advancements

The progress in technology which enhances efficiency, productivity, and capabilities in various industries.

Transportation Costs

Expenses incurred in moving goods and services from one location to another, significantly impacting trade and the final price of products.

North American Free Trade Agreement

A trilateral trade bloc in North America created by Canada, Mexico, and the United States to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace.

General Agreement on Tariffs and Trade

An international treaty created to reduce trade barriers and promote international commerce through the reduction of tariffs and quotas.