Pressures for cost reductions can be particularly intense in industries producing commodity products where meaningful differentiation on non-price factors is difficult and ____________ is the main competitive weapon.
A) quality
B) distribution efficiency
C) sales and service
D) price
E) product attributes

Question

Quizplus · Accepted Answer

When meaningful differentiation on non-price factors is difficult, industries producing commodity products often resort to competing on price as the main leveraging point. This can cause intense pressure for cost reductions, as companies strive to produce goods at a lower price point than their competitors in order to capture market share.

Pressures for Cost Reductions Can Be Particularly Intense in Industries