A low-cost provider strategy can defeat a differentiation strategy when A. customers are basically satisfied and don't think extra attributes are worth a higher price features. B. there are few ways to differentiate a product or a service and many buyers perceive these differences valuable. C. sellers are not charging a price premium. D. a company can offset thinner profit margins per unit by selling enough additional units to increase total profits. E. many rivals are pursuing a similar differentiation approach.

Question

Drake Hernandez

Business

28 March, 05:33

A low-cost provider strategy can defeat a differentiation strategy when A. customers are basically satisfied and don't think extra attributes are worth a higher price features. B. there are few ways to differentiate a product or a service and many buyers perceive these differences valuable. C. sellers are not charging a price premium. D. a company can offset thinner profit margins per unit by selling enough additional units to increase total profits. E. many rivals are pursuing a similar differentiation approach.

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Answers (1)

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Choi · Answer 1

A. customers are basically satisfied and don't think extra attributes are worth a higher price features.

Explanation:

A low cost based strategy is one that can defeat the differentiation strategy that aims to distinguish themselves from the market competition. By making the buyers think feel satisfied with the rates and prices of the products and by maintains a guarantee low price and good quality. Thus the buyers or the customers don't think of any extra set of attributes to purchase the products with a higher feature price.