Which of the following marketing strategies emphasizes offering services at a lower price than rival services with comparable features?

Which of the following marketing strategies emphasizes offering services at a lower price than rival services with comparable features?
A . Cost leadership
B . Service differentiation
C . Customer focus
D . Market responsiveness

View Answer

Answer: A

Explanation:

Cost leadership is a strategy where a company aims to become the lowest-cost producer in its industry. By offering services or products at a lower price than competitors, while maintaining comparable features, the company can attract price-sensitive customers. Here’s an explanation of the options:

Cost leadership: Focuses on minimizing costs and passing on savings to customers through lower prices.

Service differentiation: Involves offering unique services that justify a higher price.

Customer focus: Prioritizes customer needs and tailoring services/products to meet those needs.

Market responsiveness: Involves quickly adapting to market changes and customer demands.

Therefore, cost leadership emphasizes offering services at a lower price while maintaining comparable features to rival services.

Reference: Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance.

Barney, J. B., & Hesterly, W. S. (2012). Strategic Management and Competitive Advantage.