Which of the following statements is true?
A) The customers of firms using the cost-leadership strategy prefer low quality products..
B) Firms using the cost-leadership strategy musts focus exclusively on the price of the product.
C) Cost-leaders tend to be oblivious to competitors' product innovations.
D) Firms using the cost-leadership strategy usually target their products at the largest market segment possible.

Question

Quizplus · Accepted Answer

Firms using the cost-leadership strategy usually target their products at the largest market segment possible to take advantage of economies of scale and keep costs low. It does not necessarily mean that they prefer low quality products or focus exclusively on price, and cost-leaders are usually very aware of competitors' product innovations to stay competitive in the market.

Which of the Following Statements Is True