In which of the following circumstances is a strategy to be the industry's overall low-cost provider not particularly well matched to the market situation?
A)When the offerings of rival firms are essentially identical,standardized,commodity-like products
B)When there are few ways to achieve differentiation that have value to buyers
C)When price competition is especially vigorous
D)When buyers have widely varying needs and special requirements,and when the costs of switching purchases from one seller to another are relatively high
E)When industry newcomers use introductory prices to build a customer base

Question

Quizplus · Accepted Answer

When buyers have widely varying needs and special requirements, and when the costs of switching purchases from one seller to another are relatively high, being the industry's overall low-cost provider may not be enough to attract and retain customers. In this situation, buyers may be willing to pay a premium for products or services that meet their specific needs, even if they are more expensive. Additionally, if there are significant costs associated with switching from one supplier to another, customers may be less price-sensitive and more focused on factors such as quality or service.

In Which of the Following Circumstances Is a Strategy to Be