A competitive strategy to be the low-cost provider in an industry works well a. when price competition among rival sellers is especially sluggish. b. there are numerous ways to achieve product differentiation that have no value to buyers. c. buyers incur high costs in switching their purchases from one seller/brand to another. d. industry newcomers use introductory low prices to attract buyers and build a customer base. e. industry newcomers use high introductory prices to let buyers know they have a superior product to build a customer base.

Question

Business

Aleah Pierce

6 July, 03:16

A competitive strategy to be the low-cost provider in an industry works well a. when price competition among rival sellers is especially sluggish. b. there are numerous ways to achieve product differentiation that have no value to buyers. c. buyers incur high costs in switching their purchases from one seller/brand to another. d. industry newcomers use introductory low prices to attract buyers and build a customer base. e. industry newcomers use high introductory prices to let buyers know they have a superior product to build a customer base.

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Sarah · Answer 1

d. industry newcomers use introductory low prices to attract buyers and build a customer base

Explanation:

Competitive strategy of a low-cost provider seeks to create prices that are low so that competitors can not meet or exceed consumer savings for good or service of the same quality. A competitive strategy to be the low-cost provider in an industry works well when:

Industry newcomers use introductory low prices to attract buyers and build a customer base

When buyers incur low costs in switching their purchase from one seller or brand to another or when commodity based products prevails and minimal differential exists